If the future of work revolves around skills, the role of a leader is poised to undergo a significant transformation.
AI is anticipated to revolutionize not only the leaders themselves but also their workforce. According to experts, the impact of AI could redefine how leaders are evaluated. They suggest that traditional metrics used to assess their worth, such as budget allocation or team size, might undergo a shift.
AI’s influence extends beyond reshaping individual job roles—it is also poised to redefine the responsibilities of managers. While studies indicate that AI can substantially enhance the productivity of average employees, there are signs that its impact will not be limited to job automation and human workforce replacement; rather, it will play a multifaceted role in the employment landscape.
Fabian Stephany, an AI lecturer at the Oxford Internet Institute, highlighted the nuanced role of AI in the labor market, stating that it goes beyond mass-scale job automation and instead influences tasks and skills within the workplace. He emphasized that AI is altering the criteria by which leaders are deemed significant, focusing on skills rather than scale.
The evolving landscape shaped by AI aligns with the ongoing transformations in how organizations perceive and approach leadership. Ravin Jesuthasan, a transformation services leader at Mercer, noted that companies are already redefining leadership norms, management practices, and the criteria for rewarding managers.
Traditionally, a leader’s seniority was often linked to the size of their team and budget. However, with the integration of AI, the emphasis is shifting from factors like salaries and budgets towards acknowledging individuals for their contributions to the company’s success. Jesuthasan emphasized that organizations are transitioning towards recognizing and rewarding leaders based on their impact.
As AI streamlines work processes and enhances individual productivity, Nicola Morini Bianzino, EY’s global chief technology officer, highlighted that conventional metrics such as the number of direct reports or budget size may no longer suffice as indicators of effective leadership. He emphasized the need to redefine the principles of management to adapt to the changing landscape, emphasizing the shift towards entirely new approaches rather than merely improving existing practices.
