Leading Through the AI Revolution

Effective leaders need new skills and vision to weather the enterprise transformation

It took Netflix 3.5 years to reach 1 million users; it took ChatGPT 5 days. Organizations are striving to harness the potential of Artificial Intelligence, the power and scope of which seem to change each week, making the role of leadership increasingly critical. As Raffaele Jacovelli, managing partner at HTP Group, says, “AI is not just a technological evolution, it’s a disruption, and when you have disruption, it’s going to provoke a leap. People will have difficulty adjusting.” There is a transformation imperative. Effective leaders will not only be required to understand at least some of AI’s technical aspects but also possess the vision, adaptability, and soft skills necessary to direct AI-driven transformation.

And while the futurist and applied technology ethicist Nell Watson has said AI is “a dark bargain” and has called for a moratorium because of its frenetic growth pace, during an interview with HTP, Watson said she has an optimistic view of a future with AI. “It will be the Wild West for a while but then it will be systematized and there will be improved security.”

Understanding the Challenges

One of the primary challenges organizations face is finding leaders who can navigate the complexities of the AI revolution — employees’ fears of being replaced, the need for new skills, the huge amount of available data, as well as the ways AI will require new responsibilities around risk, IP infringement, hallucinations, and privacy as Jean-Pierre Bokobza, former managing director and COO of Accenture told HTP in a recent interview.

And since AI impacts various business processes, including supply chain, marketing, sales, and finance, “leaders must be capable of collaborating across departments, [abilities that are] not easy to find,” says Ineke Arts, managing partner with HTP group.

Further complicating the search for suitable leaders is the need for them to have the ability to make data-driven decisions and to retain top talent within their organization. Any approach to harnessing AI must be human centric, says Jacovelli.

The Essential Qualities of AI Leaders

To successfully navigate AI’s impact, leaders must possess a unique set of qualities. But organizations often “struggle to find leadership candidates who possess both technical expertise and business acumen,” Arts says.

There will be a move “from classic leaders who understand finance, company operations and the market to a new form of leader who needs to be able to innovate, have emotional intelligence, understand finance and also be articulate and bring their company into global partnership with their peers,” Bokobza told HTP. “All of this requires a lot of resilience.”

Traits of a successful leader in the age of generative AI include the following:

• Adaptability and agility.
  It’s not about learning how to implement this or that or write code,” Jacovelli says. “The mindset is the most critical quality. Adaptability and agility are paramount,” as leaders need to respond swiftly to changing circumstances and external influences.
• Visionary.
  Leaders are exposed to a diverse global workforce, hybrid and remote work policies, economic uncertainty, the geopolitical climate. All of which will have an impact on business,” Arts points out. “Leaders need to be fast in their thinking and adapt accordingly while remaining focused.”
• Strong communicator.
  Leaders must be capable of motivating and retaining a diverse workforce, particularly those in the younger generations, Jacovelli says. It’s been difficult to “to keep them excited and committed especially after Covid when everybody's resisting return to office mandates.”
• Adept at soft skills.
  Retention also depends on being able to be transparent, empathetic and caring, Arts says. “There has been a lot of burnout particularly within Gen Z. If leaders want to retain these young people who have potential they must be aware of their employee’s mental health. As much as young people say they prefer to work remotely, they often can't handle that stress and pressure.” Leaders need to rely on their soft skills to anticipate and address the needs of employees.
• In addition, Jacovelli says, to navigate the AI shakeup leaders also will need to be curious, have self-confidence and not be afraid to fail.

Identifying and Empowering AI Leaders

Finding leaders with these traits is quite a tall order. Engaging with executive search companies can help organizations identify potential AI leaders.

• Market mapping
  Executive search firms take a proactive approach in helping organizations investigate the landscape of potential talent and assist in identifying unique leaders who can drive transformation.
• Focus on soft skills
  While technical expertise is essential, organizations should prioritize soft skills when selecting leaders. The ability to collaborate, communicate effectively, and make data-driven decisions is crucial in the AI era. “What leaders need to know about AI has little to do with the nitty gritty technical aspect,” Jacovelli says. “It's all about how you can leverage that to improve the way you do business.” Leaders who can balance technical knowledge with strong interpersonal skills are more likely to succeed.
• Training and development
  Organizations should focus on developing a methodological approach to AI, emphasizing the mindset and adaptability required for effective leadership. This includes reskilling and upskilling employees to ensure they remain relevant and can make decisions based on data, Arts says.
• Interim leadership
  In some cases, organizations may benefit from interim leadership to bridge gaps during transitional phases. Arts suggests an interim person can help an organization buy time “to rethink strategy with AI implications towards the future. How will the new profile look like in a new development for the coming years? This approach allows organizations to leverage specialized expertise without committing to permanent hires.”
• Diverse and inclusive leadership
  Embracing diversity and inclusion is essential for fostering innovation and creativity. Organizations should strive to create a multi-age and multicultural environment, where leaders can learn from one another and drive AI-driven transformation collectively. “There is value created by combining people from different cultures, with different experiences, of different ages, genders, and sensitivities,” Jacovelli says. “there’s always something to learn.”
• Leveraging AI for Leadership Development
  By using AI tools to gather intelligence about industry landscapes, develop job descriptions, and assess candidates, organizations can streamline the leadership selection process.

As AI continues to reshape industries, the role of leadership becomes increasingly critical. Effective leaders must possess a unique combination of technical expertise, business acumen, and soft skills to navigate the complexities of AI-driven transformation. And despite the fears about the possible risks and ethical questions that will accompany AI, there is an optimism about its use and about the future among many in the business world. Says Jacovelli, “It's like when you are on a big wave and you think you're going to be wiped out. This is a big wave for sure, and you have to learn how to ride it.”