2024, Vol. 6, Issue 2, Part A

Artificial Intelligence (AI) is significantly reshaping organizational dynamics and revolutionizing corporate leadership practices. This research paper explores how AI influences corporate leadership, examining both its advantages and disadvantages. AI brings about positive impacts in communication, feedback systems, tracking mechanisms, and decision-making processes within organizations. For example, AI-powered communication tools like Slack facilitate seamless collaboration across geographical boundaries. Feedback systems such as Adobe’s Performance Management System leverage AI algorithms to offer personalized development opportunities, thereby enhancing employee growth. AI-based tracking systems optimize resource allocation, as demonstrated in studies like “AI-Based Tracking Systems: Enhancing Efficiency and Accountability.” Moreover, AI-powered decision support, highlighted during the challenges of the COVID-19 pandemic, demonstrates AI’s ability to navigate complexities and maintain resilience.

However, the adoption of AI presents challenges, particularly in human resources, potentially leading to job displacement and requiring significant upskilling efforts. It is crucial to manage AI errors, illustrated by instances such as Amazon’s biased recruiting tool, and address data privacy concerns through robust security measures. A proposed solution involves leveraging Local Machine Learning Models (LLMs) to tackle data privacy issues, with approaches like federated learning, on-device learning, differential privacy, and homomorphic encryption showing promise.

This research advocates for responsible AI adoption, emphasizing the need for a balanced integration of AI benefits while mitigating associated risks in corporate settings. By exploring the evolving dynamics of AI and leadership, it seeks to foster ethical and effective use of AI, promoting organizational success in a rapidly changing technological landscape.