Advisor I Mentor

Sparring partner

Piotr

Kania

15 October 2024

Will AI Replace Leaders? What Does the Future Really Hold?

Certain thoughts have been troubling me for some time now. As I observe the rapid development of technology, especially artificial intelligence (AI), I feel a sense of uncertainty that’s hard to ignore. It’s not fear, but rather a vague feeling that I might become less relevant. After years of building my career, gaining experience, and honing leadership skills that I’ve always considered essential, I now wonder if I will soon be seen as a manager losing touch with modern realities – unable to fully understand and adapt to the new world.

 

There are days when I wonder if all those years of managing teams, solving complex business problems, and building interpersonal relationships might eventually be overshadowed by the cold, efficient logic of AI. It’s hard to remain indifferent when the media everywhere proclaim how AI will revolutionize industries, automate processes, and support decision-making. In these moments, however, I don’t feel alone. Conversations over coffee or casual discussions with colleagues bring similar reflections: “Are we still needed? Is what we’ve worked on for years losing significance in the face of algorithms and machines?”

 

The thought that what has made me valuable – the ability to lead people, make decisions based on intuition and experience – might soon be considered outdated is discouraging. This uncertainty forces me to ask myself some tough questions. Are we, experienced leaders, destined to be sidelined in the face of technological change? Will decades of knowledge and practice still matter in a new era of machine-assisted management?

With this in mind, I seriously ponder the role of AI in leadership and management. Will AI truly replace us, or can it play a role that complements human leadership? How do the promises of AI align with the irreplaceable human skills that are the foundation of effective leadership?

 

AI: The Allure of a New Kind of Leadership

 

I can easily understand why AI is so appealing to modern organizations. The business world is flooded with data – more than any human leader could ever process alone. Market trends, customer preferences, internal performance metrics, competitor moves – all of this awaits “decoding.” AI, with its ability to process this avalanche of information, presents itself as the ideal tool to make sense of it all.

 

It’s not hard to imagine a leader who can make data-driven decisions in seconds rather than days. AI can identify patterns, run models, and provide leaders with insights they might otherwise miss. According to Accenture, 65% of managers already believe that AI helps them make faster and more accurate decisions. This is not just theory – AI is already at work in industries like finance, healthcare, and retail, where it optimizes everything from inventory management to customer service strategies.

 

In theory, AI can offer leaders a kind of “superpower”: the ability to harness massive amounts of data and emerge from the process with clear, actionable insights. It’s no surprise that 83% of managers view AI as a strategic priority (PwC, 2021). In a world where speed is everything, AI allows leadership to remove uncertainty. Data isn’t everything, but it can significantly support decision-making, minimizing the risk of human error.

 

But while this sounds tempting, I can’t help but wonder: Can leadership really be reduced to an algorithm? Leadership is not just about facts and figures; it’s about understanding people, reading between the lines, and navigating complexities that data alone can’t capture. AI may predict customer behavior or market fluctuations, but can it truly grasp the subtleties of human emotions or the nuances of interpersonal relationships within a team, which we as humans can perceive?

 

AI and Productivity: The Empowerment Leaders Seek?

 

One of the biggest promises of AI is that it will free leaders from routine tasks, allowing them to focus on high-level strategy. This isn’t just speculation; McKinsey reports that AI could automate 20-40% of routine managerial tasks, including scheduling, data entry, and even performance tracking. For many of us, this is a dream come true. AI can take over the administrative burden, the repetitive work we despise, allowing managers to focus on the bigger picture – driving growth, designing strategy, and promoting innovation.

 

At first glance, this seems like a win-win situation. But I can’t stop worrying about what might be lost in the process. If AI takes over day-to-day tasks, will leaders gradually lose touch with the people they manage? Will we end up leading from a distance, relying on metrics and dashboards to make decisions instead of taking the time to understand the individuals behind those numbers?

 

For example, AI might tell me that a team member’s performance has dropped by 10% in the last quarter, but it won’t tell me why. It won’t capture personal struggles, burnout, or quiet frustration that may be behind that drop. As leaders, we need more than just data; we need human insight. AI can tell me what’s happening, but it won’t always explain why. And without that understanding, how can we truly lead?

 

Talent Management: Can AI Really Build Teams?

 

AI’s use in recruitment and talent management is another area where its impact is already being felt. A 2021 LinkedIn report shows that companies using AI in their recruitment processes reduced hiring times by 30%, and many claim AI improves the quality of hires. AI can sift through resumes faster, analyze candidate data more effectively, and even predict future performance based on historical patterns.

 

However, recruitment is not just about filling vacancies; it’s about building teams. Can an algorithm truly identify the personal traits that make a candidate a good fit for a specific team or company culture? AI can analyze qualifications, but can it assess character, passion, or potential in the way a seasoned manager can during an in-depth interview?

 

Even after hiring, AI can play a role in talent development. AI-powered platforms can create personalized development paths for employees, suggesting appropriate courses or growth opportunities based on their performance and career goals. This level of personalization is impressive and certainly enhances a manager’s work. In fact, companies using AI in their HR functions report a 20-30% increase in employee engagement (Deloitte, 2022).

 

But again, a key element is missing. AI can customize development plans, but it cannot mentor. It cannot coach. It cannot inspire. Leadership is not just about providing growth opportunities; it’s about guiding people through those opportunities, helping them overcome challenges, and encouraging them to push their limits. These are deeply human skills that algorithms simply cannot replace.

 

The Human Side of Leadership: Where AI Falls Short

 

While AI offers much in terms of efficiency, it cannot – and will not – replace the human aspects of leadership. Take emotional intelligence (EI), for example. According to available research, 70% of leaders believe that EI is a key component of effective leadership. Emotional intelligence is the ability to understand, manage, and empathize with the emotions of others. It’s what allows leaders to build trust, resolve conflicts, and inspire teams.

 

AI, despite its power, lacks empathy. It can analyze emotions based on data – recognizing, for instance, the tone in emails or analyzing voices in meetings – but it cannot feel. It cannot truly understand what it means to be anxious, excited, or demotivated. In fact, 84% of employees believe that human interaction is essential for building trust in their leaders (Harvard Business Review, 2020). Trust isn’t something that can be coded into an algorithm; it’s built through authentic relationships, sometimes over many years.

 

Another area where AI falls short is crisis management. In times of crisis, leaders must rely on quick thinking, intuition, and experience to handle uncertainty. During the COVID-19 pandemic, leaders around the world were forced to make critical decisions without the luxury of clear data or time to analyze trends. A Deloitte study found that 77% of leaders believed traditional leadership skills were more valuable than AI during the crisis. In unpredictable situations, human judgment, adaptability, and resilience are irreplaceable.

 

Finally, there’s the question of vision. AI can help optimize operations, but it cannot create an inspiring vision for the future. Leaders are responsible for setting the direction of the organization, for inspiring people to work toward a common goal. This requires more than just data; it requires imagination, creativity, and the ability to convey a sense of purpose. McKinsey research shows that 85% of senior executives believe that setting a vision and building culture will always require human leadership.

 

A Hybrid Future of Leadership: AI and Humans Together?

 

So where does this leave us? Should we fear the rise of AI, or embrace it as a tool that can enhance our leadership capabilities? The answer, in my view, lies somewhere in the middle.

 

AI can – and should – play a significant role in the future of leadership. It can help us make better decisions, increase efficiency, and offer insights we might overlook. But it’s not a replacement for human leadership. It cannot replicate emotional intelligence, intuition, or creativity, which are essential to leading people and organizations.

 

The future of leadership is likely to be hybrid, where AI and human judgment work together. Leaders will need to know how to leverage AI for its strengths – data analysis, modeling, and automation – while maintaining the human aspects of leadership. Emotional intelligence, crisis management, vision setting, and culture building are areas where we, as managers, will always have the upper hand.

 

So, returning to the question that has been bothering me: Am I doomed to become obsolete in this new AI-driven world? I’m relieved to conclude that not necessarily – at least not yet. As long as leadership remains fundamentally about people, our experience, intuition, and emotional intelligence will continue to be invaluable. AI can assist us, but it cannot replace what makes us human.

 

But for how much longer?

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