Leadership in an AI-Enabled World

Summary

In this insightful session, Sanman and Professor Linda Hill explore the challenges and strategies of leading in an AI-enabled world. They discuss the importance of adaptability, continuous learning, and data-informed decision-making for executives. With real-world examples and research, they emphasize the need for a new leadership mindset that embraces digital transformation and the cultural shifts it entails, encouraging leaders to reimagine their roles and organizations to thrive in the digital era.

Takeaways

• 😀 The speaker emphasizes the importance of engaging and interactive sessions for learning and discussion, especially in the context of digital transformation and AI leadership.
• 👥 The speaker, Sanman, along with Professor Linda Hill and executive fellow An Lam, teaches a program called 'Leading in the Digital Era', highlighting the need for constant reinvention due to rapid changes in technology.
• 🔧 Sanman's background is in engineering and he has spent the last 20 years helping companies grow digital businesses, indicating the practical experience that informs his perspective on AI and leadership.
• 📈 The script discusses the concept of 'generative AI', showing that AI concepts have been around for a long time but are evolving, especially since the advent of platforms like Chat GPT in 2022.
• 🌐 The research conducted by the speakers involved global roundtables and a survey of over 6,500 executives, providing a broad perspective on leadership in the digital era.
• 📊 The survey results indicate that while many companies have started their digital transformation, a significant portion still feel they have a long way to go, with only 30% of those in the first five years feeling they've made significant progress.
• 🤖 AI usage is growing, with half of the companies surveyed using AI in some capacity, and 87% expecting to use it in some form in the next three years.
• 🛠️ There is a noted resistance to adopting AI, particularly in production, due to the difficulty in finding tangible benefits and the challenge of integrating AI into existing workflows.
• 💡 The discussion suggests that companies are still in the testing phase with AI, and there is a need for better understanding and training on how to effectively use AI tools.
• 🔑 The speaker suggests that leadership in the AI-enabled world requires a different mindset and behaviors, including being data-informed, customer-focused, and adaptable.
• 🚀 The importance of having a bold vision and the courage to embrace exponential changes in technology is highlighted, as is the need for leaders to be catalysts for change within their organizations.

Q & A

What is the main focus of the program 'Leading in the Digital Era'?

The program 'Leading in the Digital Era' is an executive education program focused on leadership in the context of digital transformation and AI, rather than the technical aspects of these technologies.

What is the background of the speaker Sanman?

Sanman is an executive fellow at the business school who has spent the last 20 years helping companies create and grow digital businesses, data analytics, and AI-enabled solutions. He has a technical background, having trained as an engineer and worked on optimal control theory, a form of generative AI from 30 years ago.

What is the significance of the speaker's old thesis on optimal control theory?

The significance of the speaker's old thesis on optimal control theory is that it represents an early form of generative AI, illustrating that the concepts of generative AI have been around for a long time, albeit in different forms.

What was the speaker's role at the software company PTC?

At PTC, the speaker was involved in the SAS transformation of the company and also worked with generative design, a type of AI that provides different solutions for mechanical equipment based on given prompts and specifications.

What are the key leadership implications of being in the digital era according to the speaker?

The speaker suggests that the key leadership implications of being in the digital era include the need for a different mindset, set of behaviors, and capabilities to understand and navigate the leadership challenges presented by rapid technological advancements.

How did the speaker and his team conduct their research on leadership in the digital era?

The speaker and his team conducted their research by working with HBS Global Research centers to set up roundtables, speaking to almost 250 senior executives worldwide, and administering a survey to over 6,500 executives from more than 100 countries.

What is the difference between 'digital maturity' and 'digital transformation' as discussed in the script?

Digital maturity refers to an ongoing process of adapting to and integrating digital technologies into an organization's operations, recognizing that the goalposts are always moving due to rapid innovation. In contrast, digital transformation often implies a specific, often large-scale change process, with the implication of reaching a final state or 'enlightenment'.

What percentage of companies surveyed are currently using AI in some form or fashion, according to the script?

According to the script, approximately 50% of the companies surveyed are currently using AI in some form or fashion.

What is the projected percentage of companies that will be using AI three years from now, as per the executives surveyed in the script?

The executives surveyed in the script project that 87% of companies will be using AI in some form or fashion three years from now.

What are the main functions where companies are currently using AI, as discussed in the script?

The main functions where companies are currently using AI, as discussed in the script, include customer service, finance and accounting, and production.

What challenges do executives face in terms of AI usage and implementation, as mentioned in the script?

The challenges executives face in terms of AI usage and implementation include resistance to change, difficulty in prompting AI effectively, lack of understanding of how to integrate AI into existing workflows, and the struggle to comprehend exponential growth in AI capabilities.