Artificial Intelligence: the future of decision-making or the end of human managers?

India: a decidedly optimistic approach to artificial intelligence (AI)
Viewed from Europe, it is clear that India has adopted a decidedly optimistic approach to artificial intelligence, seeing AI systems as a lever for innovation and growth. With thriving technology companies such as Infosys, Tata Consultancy Services and Wipro, and numerous applications across a range of sectors, including agriculture, healthcare, education and, of course, business, India is positioning itself as one of the world’s leaders in AI. However, this growth in AI is now poised to shift the balance between Humans and their Machines.
The emergence of a new AI-based decision-making system
Although initially limited to providing assistance in a support role, artificial intelligence algorithms are no longer simply content to propose solutions to their users… they are now actually making decisions for them.
By automating certain operational decisions, AI has the potential to reduce the cognitive load on managers, as shown by the following real-life examples. In the Indian retail sector, Reliance Retail is using AI in its outlets to manage inventories and anticipate demand. Algorithms are used to analyse buying trends, consumer behaviour, and market developments, and can then recommend the best supply strategies to managers. In the healthcare sector, AI is being used for predictive medicine to improve access to healthcare, particularly in remote areas, and to speed up diagnoses, as exemplified by the Indian start-up Niramai (early detection of breast cancer) and the company Qure.ai (medical diagnosis).
The education sector in India is also benefiting from the power of AI. BYJU’s, one of the world’s major EdTech players based in India, is using AI to offer personalised learning paths by analysing student behaviour to be able to tailor courses to their individual needs. Like an instructional designer, the algorithms develop educational solutions by adapting the content to the exact profile and progress of the learner.
AI and Managers: finding a balance in shared decision-making
The emergence of this new AI-driven decision-making system, a veritable revolution in the making, raises a number of key issues for managers. Any manager may feel that their autonomy and supervisory skills are being called into question by this software intelligence. Although some see AI as a way of increasing their capacity at work by optimising human and material resources, others are concerned about the loss of control and decision-making ability, to the point of questioning their directors about the importance of putting in place a decision-making governance mechanism between man and machine within the company.
So, are we looking at a model of the ‘superhero’ manager, where human intelligence is augmented, with the ability to make faster and more accurate decisions, working in tandem with algorithms? Or should we be imagining a world where artificial intelligence replaces the heads of departments or even the members of management committees who are losing control?
As AI continues to become more embedded in decision-making processes, this technology could have a profound impact on the way decisions are actually made, sometimes without managers even being fully aware of what is happening. This raises a number of concerns relating to an increasing dependence on technology, the objectivity of and accountability for decisions, transparency due to the opacity of algorithms, and the ethical compliance of decisions taken by AI systems that are sometimes poorly trained. Automation may gradually result in some managers being less involved in day-to-day decision-making processes, with AI taking an increasingly important role in processing data and generating recommendations.
‘Augmented Human’ or ‘Algorithmic Manager’?
Managers and artificial intelligence will therefore soon be forming a formidable duo. However, the impact of AI on managers will largely depend on how it is embedded in the organisation as well as on the attitude of managers themselves vis-à-vis this technology. Behind the promise of an ‘augmented manager’, who is better informed and faster, there is the risk of a ‘diminished manager’, totally dependent on technology and less involved in strategic and decision-making functions. The key lies not only in increased vigilance to avoid any excessive use and to ensure a balance between technological efficiency and human responsibility, but also, and to a very large extent, in training managers to become ‘AI decision moderators’.
Managers will need to decide why, when and how to harness the power of AI. They will also have to think about the reasons, the objectives and also the limitations and precautions for dosing the decision-making of this new pairing of ‘human’ intelligence and ‘algorithmic’ intelligence. This is a whole new set of responsibilities that requires new skills: both a good understanding of the scope and limitations of algorithms’ capabilities, and an accurate appreciation of the ‘psycho-emotional’ impact on the collective motivation of the human community… that is the company.
Author: Guillaume Pernoud, Head of Continuing Education at Excelia (France)
Disclaimer: The views expressed in this article are solely those of the author and do not necessarily reflect the opinions or policies of ObserveNow Media. The author is solely responsible for ensuring the accuracy, completeness, and validity of the information presented, encouraging readers to independently verify and seek professional advice if needed.