AI is here and will continue to be developed and deployed in businesses around the world. So what does this mean for senior executives? A new type of leader is needed to guide this evolution so organizations can gain a competitive advantage. A new report from Focus Search Partners delves into how companies can adapt to key aspects of this evolving technology.
June 4, 2024 – Today, business leaders across all industries can harness the power of AI to solve challenges that were previously thought to be unsolvable or too time-consuming, according to a new report by Adam Charlson of Focus Search Partners. “To do this effectively, however, leaders must deftly navigate and adapt to key aspects of this evolving technology,” the study states. “Despite initial concerns, AI has not replaced widespread parts of the workforce, and many experts now predict that AI is more likely to change the way people work than it will take away their jobs.”
Economic historian and Bank of England Governor Andrew Bailey disputed the idea of mass job losses due to AI, saying, “Economies will adapt, jobs will adapt, and we will learn to live with AI.” LinkedIn CEO Ryan Roslansky suggested AI is not a replacement for workers, but an ally that improves job performance, and said it's an “opportunity to reinvent the way we do things.” While AI is best known for automating highly repetitive processes, for example routine tasks related to accounts receivable and collections in revenue cycle management, AI solutions are not limited to those areas, explains the Focus Search Partners report.
According to a report from Focus Search Partners, generative AI can and will automate some of knowledge worker's tasks, and knowledge workers can optimize their time by implementing technology that strategically edits or uses what AI creates rather than creating the initial deliverables themselves. For example, CRM software with built-in generative AI tools can help salespeople quickly identify compelling topics to discuss with customers, maximizing the time they spend preparing and strategizing to close the sale.
But despite all the positives AI brings to the workforce, today's leaders need to have some important conversations. “First, it's important to directly address the ingrained notion that AI replaces employees,” the Focus Search Partners report states. “A well-crafted, expertly executed communications plan can help by dispelling AI use cases within a given organization while also sharing where employees can expect to see AI adoption. Second, leaders should encourage and cultivate employees' AI proficiency and technical literacy through continuing education and training opportunities to help them succeed in this new environment. While these solutions won't address every employee's concerns and pain points, they do establish a foundation of trust and communication, which are key elements in navigating the ever-growing AI conversation.”
Uncertain regulatory landscape
In 2023, Congress has seriously considered AI, specifically the risks associated with the technology and the need to regulate it. Unlike the early days of social media, executives from the largest companies in the AI space have been active participants in congressional hearings and the loudest voices calling for government regulation.
Artificial Intelligence Needs New Leadership
Artificial intelligence will continue to be developed and implemented in the business world. Regardless of how you feel about it, you and your organization need to prepare for the changes it will bring, according to a recent report from Brainworks. The company explains that organizations need to be ready for innovation, which is driven through leadership.
A recent article from Keen Alignment points out that AI is already involved in some way in many businesses — performing number crunching and mundane tasks that would take a human (or humans) much longer to complete — but as AI continues to grow and develop, its role in the workplace will become more prevalent.
In testimony in May 2023, OpenAI CEO Sam Altman said the company “believes that regulation of AI is essential and wants to help policymakers determine how to foster balanced regulation that encourages safety while allowing people to access the benefits of the technology.”
At a September 2023 hearing, Microsoft President Brad Smith praised the bipartisan framework for a US AI bill, which proposes an AI licensing regime, an independent oversight body, and more. Smith said the bill “reflects the urgency and speed needed to address this rapidly evolving technology, combining strong protections for the public with support for ongoing technological innovation.”
Related: 5 Key Steps to Surviving the Generative AI Revolution
A report from Focus Search Partners noted that a range of AI developers, executives, and scientists participated in nine bipartisan Senate forums on AI that addressed the intersection of AI and national security in late 2023. Also, in October 2023, President Biden released an Executive Order on Safe, Secure, and Trustworthy Artificial Intelligence, outlining new standards for AI safety and security, privacy protections, employee support, and more.
“Executives at companies developing AI solutions and leaders who run their businesses with AI-embedded software should closely monitor AI regulatory developments in the coming months,” the Focus Search Partners report said. “Participating in the ongoing discussion about AI applications in the workplace represents an opportunity to influence the future of AI and the regulatory framework that will govern it.”
Legal Implications of AI
After OpenAI launched ChatGPT, lawsuits followed. Plaintiffs include comedian Sarah Silverman, the Authors Guild, a major trade group for authors, and The New York Times. The lawsuits allege that OpenAI infringed the plaintiffs' copyrights in training ChatGPT to answer user inquiries. AI art generators Stability AI, Midjourney, and DeviantArt have also been sued by artists over similar copyright infringement claims.
“These lawsuits should not discourage companies from engaging with AI, but they serve as an important reminder to be aware of the potential legal risks that come with doing so,” Focus Search Partners said. “This proactive approach will help companies mitigate the risks identified and prepare for potential legal action that may arise from employees, customers and others whose work involves AI technologies.”
The Importance of Comprehensive AI Policy
According to a report from Focus Search Partners, as AI use cases grow and new AI-embedded tools are released, adaptive leaders are quickly realizing the importance of making thoughtful decisions about the development and use of AI technologies within their organizations. The study states that this includes creating comprehensive AI policies that:
- Identify business functions that are suitable for AI implementation and document areas that are not.
- Good and bad applications of AI.
- A clear goal for integrating AI into a specific function or situation.
- Anticipate potential ethical and legal considerations related to the use of AI.
- A strong communications plan to communicate your use of AI to customers, employees, and key stakeholders.
Focus Search Partners says this policy should be reviewed at least annually, but sooner if significant changes or company-wide initiatives require existing policies to be reconsidered.
Leaders need to adapt to AI now
The solution to many of today's toughest problems lies in AI. “Adopting AI is no longer an advantage — it's a necessity,” the report notes. “Leaders and organizations that fail to integrate this technology risk falling behind industry competitors who are already harnessing the power of AI to tackle complex challenges and find new opportunities.”
“As much as businesses need AI, they also need adaptive leadership to properly manage and direct it,” Focus Search Partners said. “This is best spearheaded by top-tier executives and their executive leadership teams who have high levels of emotional intelligence, strong ethics, a commitment to good corporate governance and excellent communications skills. Combined, AI in the hands of adaptive leaders can help them do things that were never possible before and take their organizations to the next level.”
Related: Balancing the use of artificial intelligence and real intelligence in talent discovery
Contributors: Scott A. Scanlon (Editor in Chief), Dale M. Zupsanski (Editor in Chief), Lily Fauber (Senior Editor) – Hunt Scanlon Media
