In the 21st century, organisations are grappling with formidable challenges posed by the introduction of new digital technologies that modify or replace existing business models (Weber et. al, 2022). Minx (n.d.) highlights that 21st-century leaders deal with volatility, uncertainty, complexity, and ambiguity, especially with the evolution of technology, anticipating leaders to change, and be agile enough to deal with challenges in different organisations.
According to Zipdo’s research (2023), there has been a significant 270% increase in the number of organisations implementing artificial intelligence (AI) in their businesses compared to the 37% four years ago. Undeniably, AI is a double-edged sword that can aid leaders in making better decisions, but it also poses threats to leadership, as will be discussed in the following sections.
AI in Hiring: Friend or Foe in Ensuring Fair Recruitment?
A common challenge in the implementation of AI in the recruiting process is the potential introduction of bias into the algorithm by the human creator influenced by the developer's unconscious bias (Ntoutsi et. al, 2020). Data bias can arise during the implementation phase if the data is not representative of the real world. Meaning, if the data is skewed towards a particular gender, ethnicity, or educational background, the AI might unfairly evaluate candidates based on these factors.
For instance, Amazon’s AI-powered recruitment tool apparently exhibited bias against women, impacting not only women facing discrimination in the workplace but also harming the company’s reputation (Kelly, 2022). This is because the algorithm used data from resumes submitted over a 10-year period, during which most of the applicants were male-dominated in the technology industry (Dastin, 2018). Consequently, AI has the potential to shrink a company's talent pool, particularly affecting female employees, in the process of selecting top candidates if the algorithm developed incorporates the unconscious biases of its developers.
(Canadian HR Reporter, 2018)
Tech-Averse Leadership: A Recipe for Organisational Extinction
Leaders may face reputational damage if biassed AI algorithms lead to discriminatory hiring practices (Pena et. al, 2020). The public and stakeholders may hold leaders accountable for unfair recruitment processes, affecting the organisation's image. Apart from bias in AI algorithms, the failure to implement digital technologies can also threaten the survival of an organisation.
The failure of Kodak can be attributed to its inability to adjust to evolving market conditions during digital transformation. Instead of embracing new technologies such as the digital camera, Kodak concentrated on safeguarding its existing business, which relied on selling film (Lucas and Goh, 2009). Consequently, Kodak lagged behind as the photography industry transitioned to digital formats, despite being a pioneer in the photography industry and dominating the market for many years.
Additionally, Osipov and Skryl (2021) indicated that without digital transformation, an organisation will remain with manual and time-consuming processes, leading to inefficiencies and decreased overall productivity. Hence, leaders play a crucial role in maintaining or increasing the competence of organisations, ensuring companies can survive in the end.
Nurturing a Culture of Innovation: How Coaching Leadership Fosters AI Adoption
Leaders play a vital role in guiding the development and applications of AI in organisations through the use of a coaching leadership style. The implementation of AI in an organisation tends to increase job insecurity among older employees, especially if AI is perceived as a threat to traditional roles (Alcover et. al, 2021). Through coaching, leaders can inspire an innovative culture by encouraging employees to embrace change (Zhang, 2020).
For example, as a technology industry leader, Google implemented the 'Googlers-to-Googlers' program with the aim to assist peers in learning and growing within the company (Human Capital Institute, n.d.). This program allowed employees to share insights, skills, and best practices with their peers. Moreover, as the CEO of Microsoft, Satya Nadella made himself available to employees for questions, delivering constructive feedback and support, which helped employees to develop personally and professionally in the long term (Debara, 2022).
However, Berg and Karlsen (2012) argued that a coaching leadership style is not effective when employees are reluctant to receive feedback or are unwilling to learn. Therefore, leaders should bridge communication gaps by clearly conveying goals, benefits, and expectations related to AI adoption, encouraging employees to keep an open mind to continuous learning. Through personalised guidance and feedback, coaching helps individuals and teams quickly adapt to new technologies, boosting immediate performance and building lasting personal strengths among employees.
Self-Reflection
In the dynamic landscape of the 21st century, where organisations grapple with the challenges of digital transformation and the integration of AI, the role of leadership becomes paramount. While AI undoubtedly holds immense potential to enhance processes, automate tasks, and improve decision-making, it also introduces a new set of leadership considerations, particularly in the realm of talent acquisition.
Drawing parallels to my own life, I reflect on the significance of coaching leadership in my own educational journey. The need for continuous learning, adaptability, and effective communication aligns with the demands of academia. The example of Google’s internal teaching network and Satya Nadella’s leadership at Microsoft inspires me to explore mentorship opportunities within my university. Embracing a coaching mindset not only enhances my personal development but also contributes to fostering a culture of innovation and collaboration within the academic environment. As I engage with the ever-changing technological landscape, this reflection motivates me to approach my studies with openness, resilience, and a commitment to lifelong learning.
Reference
Alcover, C. M., Guglielmi, D., Depolo, M., & Mazzetti, G. (2021). “Aging-and-tech job vulnerability”: A proposed framework on the dual impact of aging and AI, robotics, and automation among older workers. Organizational Psychology Review, 11(2), 175-201. https://doi.org/10.1177/2041386621992105
Berg, M. E., & Karlsen, J. T. (2016). A study of coaching leadership style practice in projects. Management Research Review, 39(9), 1122-1142. https://doi.org/10.1108/MRR-07-2015-0157
Dastin, J. (2018, October 10). Amazon scraps secret AI recruiting tool that showed bias against women. The Star. https://www.thestar.com.my/tech/tech-news/2018/10/10/amazon-scraps-secret-ai-recruiting-tool-that-showed-bias-against-women/
Debara, D. (2022, June 24). Coaching leadership style: Examples and skills to get started. BetterUp. https://www.betterup.com/blog/coaching-leadership-style-examples
Human Capital Institute. (n.d.). Google's g2g “Googlers-to-Googlers” Program: A lesson in community, culture and trust. Human Capital Institute. https://www.hci.org/session/googles-g2g-googlers-googlers-program-lesson-community-culture-and-trust#:~:text=Google's%20g2g%20program%20
Kelly, J. (2022, November 28). Could Amazon be replacing recruiters with artificial intelligence software? Forbes. https://www.forbes.com/sites/jackkelly/2022/11/28/could-amazon-be-replacing-recruiters-with-artificial-intelligence-software/?sh=78af748c534f
Lucas Jr, H. C., & Goh, J. M. (2009). Disruptive technology: How Kodak missed the digital photography revolution. The Journal of Strategic Information Systems, 18(1), 46-55. https://doi.org/10.1016/j.jsis.2009.01.002
Minx, P. (n.d.). The challenges facing 21st century leaders. Templar. https://templaradvisors.com/2019/01/23/challenges-facing-21st-century-leaders/
Ntoutsi, E., Fafalios, P., Gadiraju, U., Iosifidis, V., Nejdl, W., Vidal, M. E., ... & Staab, S. (2020). Bias in data‐driven artificial intelligence systems—An introductory survey. Wiley Interdisciplinary Reviews: Data Mining and Knowledge Discovery, 10(3), 1-14. https://doi.org/10.48550/arXiv.2001.09762
Osipov, V. S., & Skryl, T. V. (2021). Impact of digital technologies on the efficiency of healthcare delivery. Springer Singapore, 933, 243-261.
Pena, A., Serna, I., Morales, A., & Fierrez, J. (2020). Bias in multimodal AI: Testbed for fair automatic recruitment. Conference on Computer Vision and Pattern Recognition Workshops, 129-137. https://doi.org/10.48550/arXiv.2004.07173
Weber, E., Krehl, E. H., & Büttgen, M. (2022). The digital transformation leadership framework: Conceptual and empirical insights into leadership roles in technology‐driven business environments. Journal of Leadership Studies, 16(1), 6-22. https://doi.org/10.1002/jls.21810
Zhang, X. (2020). The relationship of coaching leadership and innovation behavior: Dual mediation model for individuals and teams across levels. Open Journal of Leadership, 9(1), https://doi.org/10.4236/ojl.2020.91005
ZipDo (2023, July 16). Essential AI in the workplace statistics in 2023. ZipDo. https://zipdo.co/statistics/ai-in-the-workplace/#:~:text=Highlights%3A%20The%20Most%20Important%20Statistics&text=37%25%20of%20organizations%20have%20implemented,all%20customer%20interactions%20by%202025
Disclaimer: This blog is created to fulfill the academic coursework requirements of the subject MGT3073 Leadership conducted at Sunway University, Malaysia, and is for educational purposes only. It is not meant for commercial or consulting purposes, and is not for sharing and distribution.
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