Consultancy

Leadership: with AI, top managers are aiming for more autonomous teams

According to a Bip survey of 250 C-level executives, 99 per cent are working to create the conditions that enable their colleagues to make their own decisions. Iacovone: “The challenge is not simply to adopt artificial intelligence, but to translate it into tangible value.”

Donato Iacovone

4' min read

Translated by AI
Versione italiana

4' min read

Translated by AI
Versione italiana

You can’t lead a team these days without going through a triathlon. However, you don’t necessarily have to be an athlete, because instead of swimming, cycling and running, the three disciplines to tackle are leadership, technology and knowledge. Donato Iacovone, the executive chairman of the consultancy firm Bip, attributes this largely to autonomy and tells us that ‘we need to create the conditions for people to be autonomous in their decision-making, even in the absence of senior management’.

Leadership today

In short, it is the complete opposite of command and control, which – given the new opportunities created by artificial intelligence – seems to be precisely the myth that top managers need to dispel: if anything, say 99 per cent of them, an effective leader is someone who creates the conditions for others to make the right decisions independently; they are no longer the person who wants to control every little detail and always keep an eye on their staff, as revealed by the survey ‘Leadership Today’, which was carried out by Bip through interviews with 250 C-suite executives and was presented at the InSummit in Venice, where the company brought together 350 business leaders, representatives of institutions and key players in the innovation ecosystem, to explore the major changes in society, identify the key drivers of innovation and outline new prospects for the future.

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The context of uncertainty

“In a context where geopolitical uncertainty, demographic changes and technological developments are constantly reshaping the competitive landscape, the challenge for businesses and those responsible for leading them is not simply to adopt artificial intelligence, but to translate it into tangible value,” explains Iacovone. And this requires leadership capable of “making timely and informed decisions, harnessing the organisation’s knowledge and rethinking processes and skills,” continues Iacovone. Technology, on its own, does not drive transformation: it is the integration of leadership, knowledge and technology that enables businesses to tackle complexity, innovate and create value over time.”

The evolution of models

For Iacovone, the times we are living in call for a change that ‘goes beyond the mere willingness to delegate: in a context of structural uncertainty, the ability to distribute responsibilities, recognise weak signals and correct the course in a timely manner becomes essential. Adaptive leadership is not limited to a decision taken at the top, but is measured by the entire organisation’s ability to put it into daily practice’. Whilst old models appear increasingly inadequate, 69 per cent of managers still believe it is important for leaders to have a complete overview of information, not least to understand any errors. Certainly, information overload, according to 41 per cent, is the greatest obstacle to carrying out one’s work with peace of mind. At the same time, 81 per cent believe that the leadership profile that worked twenty years ago may now be a risk factor. In day-to-day practice, 66 per cent of managers say they are able to maintain a good level of team engagement and cohesion and to make decisions quickly.

Corporate culture

The evolution of leadership models is not helped by a corporate culture that remains widespread and control-oriented (according to 49 per cent of respondents), followed by structures that hinder flexibility and speed of decision-making (according to 41 per cent) and the difficulty of aligning the middle management levels of the organisation (according to 37 per cent). Conversely, what makes the difference are autonomy and decision-making responsibility (45 per cent), the ability to revise decisions as things progress (42 per cent) and a culture that tolerates controlled failure as a tool for rapid learning (40 per cent).

The assimilation of technology

The approach to leadership that emerged from the responses must take account of technology, in particular artificial intelligence, which is making a decisive entry into organisations: its impact is now most evident in operational functions such as operations and operational processes, customer service, marketing and communications, and IT and information systems. However, adoption is not yet widespread: just 17 per cent of respondents state that their organisation is working in a structured way to review processes and decision-making models, whilst 26 per cent are still at the experimental stage. From his perspective, Iacovone explains that only half of large organisations adopting AI have fully integrated it, whilst in smaller organisations the figure is just 5 per cent. There is therefore still much to be done and, above all, there is a great deal of caution amongst managers. Almost half (48 per cent) are in favour of its widespread use, provided that robust security and governance measures are in place; and, when it comes to decision-making processes, only 12 per cent of respondents consider it to be a fundamental strategic support. In other words, AI can amplify and accelerate the processing of existing knowledge, but it cannot replace it, especially since ‘critical thinking,’ concludes Iacovone, ‘has increasing added value today. Access to technology can be bought. The ability to guide it cannot.’

Critical thinking

Whilst the value of AI is widely recognised by all managers, the responses reveal a growing concern about its effects on skills and the quality of organisational thinking: 59 per cent of C-level executives cite a reduction in lateral thinking ability as the main risk, whilst 48 per cent fear a weakening of staff skills. Respondents highlight the risk of an ‘echo effect’, whereby inaccurate responses generated by systems are accepted as true by operators, progressively compromising the quality of the information base; added to this is the risk of ‘hallucinations’, namely the generation of incorrect hypotheses to fill information gaps. The new agenda for leaders is not simply about adopting AI more quickly, but about creating the organisational, cultural and technological conditions to ensure that it can enhance the company’s knowledge base without undermining people’s critical thinking skills.

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