Guide to Artificial Intelligence (AI) for Managers

In an era of digital progression that’s focused on big data and artificial intelligence (AI), there are five companies leading the charge. They are: Alphabet (Google’s parent company), Amazon, Apple, Tesla, and Microsoft.¹ These industry giants collectively racked up a market capital of over $9 trillion in February 2022,² and part of their dominance lies in the technology utilized. With that in mind, it’s not hard to see why there has been a laser-focus on AI technologies in recent years.

According to research:

It’s becoming increasingly pertinent for managers to develop a deeper understanding of the technology behind this impetuous disruption. This will enable them to effortlessly include AI in their business management practices.

A guide to AI for managers

Before implementing AI, you’ll need to:

The Oxford Dictionary defines AI as, “the theory and development of computer systems able to perform tasks normally requiring human intelligence, such as visual perception, speech recognition, decision-making, and translation between languages.” ⁴

• Understand AI
  Since this technology is still developing, it will likely go beyond this definition. The potential for AI technology in redefining how we do business is enormous.
• Assess your attitude towards AI
  A shift in mindset is necessary to allow your organization to embrace the potential of AI. This technology requires a dynamic environment, and successful enterprises use the concept of ‘productive failure’ to maneuver through AI implementation. Ordinary processes often cannot be applied to disruptive technology, and AI-based algorithms require tests, trials, and training. An agile approach will be essential as you learn alongside AI technology.

Incorporate AI into your business management strategy

• Choose the right technology

AI may be considered the future of the business world,⁵ but how do you apply it to managerial functions on a practical level? The first rule is that AI must be easy to use – it may sound simple, but it’s true.⁶ The more difficult it is to learn to use, the harder it will be to incorporate AI into business processes.

• Build the best strategy

After you’ve identified the right technology for your business need, the next step is to ensure the company has a fully-fledged strategy for AI implementation.

To bridge the gap between strategy and actual AI implementation means understanding the business implications of adopting AI technology. It’s about recruiting the right talent to provide the necessary skills and insight, as well as equipping current employees with new skills to see the strategy through.

• Drive holistic change

AI shouldn’t operate in a silo: its insights must be shared across the organization, creating a business-wide technology impact. Employees’ resistance to change will need to be managed, and a culture that embraces technology must be established and nurtured.

Consider the challenges

Harvard Business Review has gone into an in-depth overview of AI and machine learning. A statement from this article that stands out,

“One of machine learning’s greatest legacies may well be the creation of a new generation of business leaders.” ⁷

Many of the challenges of AI adoption lies with leadership. As a manager you’ll need to create and have:⁸

• Long-term vision
• Openness to new ideas
• A flexible mindset
• Compatible technology
• Effective collaboration

Common barriers to AI adoption and tools to overcome them

While your strategy for introducing AI technologies into your organization may be sound, there could be potential resistance to new systems and operational changes.

Why do employees resist?

Digital transformation is generally synonymous with a change to job roles. For many people, change can amplify feelings of job insecurity and threaten their place in the organization.⁹

These feelings will be aggravated if management fails to:

• Communicate thoroughly with its staff and consult them on the changes
• Explain the personal and overall benefits for each employee in using the new technology
• Introduce a clear change management process with the required training
• Reassure employees that the new systems won’t necessarily mean redundancy of staff

Here’s how to conquer the common barriers to AI adoption.¹⁰

Communicate

The most important part of change management is communication. Don’t leave your employees completely out of the loop. Take care to answer legitimate questions your employees pose and address their concerns. Conduct transparent communication from the moment you start the change management process.

Engage

Besides transparent communication, consciously engage your employees in the change process. Employees who are actively involved feel acknowledged, understood, appreciated, and inspired. Encourage your employees to speak up, and to highlight any concerns and questions.

Train

Introducing innovations often results in jobs and roles changing. It’s important to help guide your employees through the change process and ensure they’re ready for the future. Where you can, upskill and train your employees. This will make the transition easier, and employees will feel more positive and confident about the implementation of new technologies.

The success of AI in business will depend on leadership

As Erik Brynjolfsson, Director of the MIT Initiative on the Digital Economy and Co-faculty Director of the Digital Business Strategy: Harnessing Our Digital Future online short course states: “Harnessing machine learning can be transformational, but for it to be successful, enterprises need leadership from the top”. This means understanding that when machine learning changes one part of the business – the product mix, for example – then other parts must also change. This can include everything from marketing and production to supply chain, and even hiring and incentive systems.”¹¹

Adopting AI means viewing it as a tool for effective innovation and productivity, but managing the human side of disruption is essential.

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