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Leadership Challenges you need to focus on in 2024 and beyond

Helicopter View

Emotional Intelligence: The Basics for Professional Success

Level Up Your Leadership

Prefer to read? Here’s the transcript!

In my previous post on Leadership Challenges in 2024 and beyond, I briefly mentioned technological advances and using Artificial Intelligence in business.

Keeping abreast of technological changes is not only important for you but also your team members. It keeps you relevant in the job market and adds to your existing skills. Yet, we all resist change and stepping out of our comfort zone.

Hi, I’m Vatsala Shukla from Karmic Ally Coaching and in this post, I’m continuing to share my views on some of the challenges leaders will face in 2024 and beyond.

Twenty years ago, resistance would happen with the implementation of new accounting software, ERP or business systems requiring us to learn a new method of work. It’s only when we’d master the new skill and learning that we’d notice an improvement in our efficiency and productivity.

It’s the same with newer forms of technology.

In our present-day environment, that’s Artificial Intelligence also known as AI. As a leader, you need to have that helicopter view to see the big picture and know how to get your team’s buy in.

In my post about helicopter view and strategic thinking, I shared the story of the managing partner whose ‘I have a dream’ speech backfired. And the damage control that was required at operational level by the managers to prevent a mass attrition.

It’s the same story here.

ChatGPT Hallucination is real!

Yesterday evening while walking the family pet, I ran into a friend who happens to be a bright young arbitration lawyer. We got chatting about using ChatGPT in the corporate world.

I mentioned the case that made headlines in June 23 when a lawyer suing an airline in a routine personal injury suit used ChatGPT to prepare a filing. Unfortunately, the artificial intelligence bot delivered fake cases that the attorney then presented to the court. This prompted the judge to consider weighing legal sanctions on the lawyer.

It was one of the first AI “hallucinations” making it to court.

My young lawyer friend said it was a risk in any profession and the need to understand the purpose of the tool and not use it as a replacement for human work. He told me how he had experimented with ChatGPT to see what came up.

To his amazement, 10 well written cases were delivered but they were all fake.

It comes down to being very specific with the information we are requesting and then verifying and validating the information. If you log into ChatGPT now, you’ll see the caveats about the information generated.

AI applications are already present in the business world. It isn’t going away even if things slow down a bit as we grapple with machine bias, error and protocols for safe usage.

Use of AI in work requires new methods and checks for risk management. Issues of privacy and confidentiality become important. Rules and regulations are required for artificial intelligence.

European Union’s AI Act is a step in the right direction

A beginning has been made with European Union (EU) lawmakers passing the world’s first comprehensive regulation for artificial intelligence, called the AI Act. The rules, however, won’t take effect until 2025 at the earliest, leaving room for a lot of technological evolution until then.

The new law still needs to be approved by the European Parliament, though that will be a formality.

Some highlights from the EU’s AI Act are:

• A focus on AI’s riskiest uses by companies and governments, including those for law enforcement and the operation of crucial services like water and energy.
• Transparency requirements for makers of the largest general-purpose AI systems.
• Chatbots and software that creates manipulated images such as “deepfakes” would have to make clear that what people were seeing was generated by AI.
• The use of facial recognition software by police and governments would be restricted outside of certain safety and national security exemptions. Companies that violated the regulations could face fines of up to 7% of global sales.
• Policymakers agreed to what they called the “risk-based approach” to regulating AI, where a defined set of applications face the most oversight and restrictions. Companies that make AI tools that pose the most potential harm to individuals and society, such as in hiring and education, would need to provide regulators with proof of risk assessments, breakdowns of what data was used to train the systems and assurances that the software did not cause harm like perpetuating racial biases. Human oversight would also be required in creating and deploying the systems.
• Some practices, such as the indiscriminate scraping of images from the internet to create a facial recognition database, would be banned outright.

These new regulations will be closed watched globally as they affect not only major AI developers but other businesses that are expecting to use the technology in areas such as education, health care and banking.

AI Act is a global benchmark for all countries

The law sets a global benchmark for countries seeking to harness the potential benefits of the technology, while trying to protect against its possible risks, like automating jobs, spreading misinformation online and endangering national security.

Different countries are adopting a different approach. For example, in India, the government isn’t considering bringing a law or regulating the growth of AI.

However, they acknowledge the ethical concerns and risks around AI and have already started making efforts to standardize responsible AI and even promote the adoption of best practices.

The upcoming Digital Personal Data Protection Bill 2022 will apply to AI developers who develop and facilitate AI technologies.

As a corporate professional, you already know that AI has been around for some time. So, the new regulations that are being introduced should not come as a surprise.

Forbes Advisor Survey is a MUST for your professional development reading

A comprehensive article in the Forbes Advisor about the use of Artificial Intelligence by businesses in 2023 states that businesses are employing artificial intelligence in a variety of ways to improve efficiencies, save time and decrease costs. This is a precious resource for companies across industries.

Forbes Advisor surveyed 600 business owners using or planning to incorporate AI in business. The results revealed AI’s impact on areas such as cyber security, fraud management, content production and customer support, including the use of top chatbots.

To quote the survey, here are some key takeaways.

• Over half of business owners use artificial intelligence for cyber security and fraud management.
• One in four business owners are concerned about AI affecting website traffic.
• Almost 97% business owners believe ChatGPT will help their business.
  One in three businesses plan to use ChatGPT to write website content, while 44% plan to use ChatGPT to write content in other languages.
• Nearly half of business owners use AI to craft internal communications.
• Over 40% are concerned about an over-dependence on technology due to AI use.
• Nearly two-thirds of business owners believe AI will improve customer relationships.

Current applications of AI in business

The most popular applications include customer service, with 56% of respondents using AI for this purpose. Cyber security and fraud management, adopted by 51% of businesses.

Other notable uses are customer relationship management, digital personal assistants, inventory management and content production.

Businesses also leverage AI for product recommendations, accounting, supply chain operations, recruitment and talent sourcing and audience segmentation.

AI is perceived as an asset for improving decision-making, decreasing response times and avoiding mistakes. Businesses also expect AI to help them save costs and streamline job processes.

Business Owners also have reservations about AI

While this survey might make you feel that AI is the next best thing since sliced bread, there are some concerns that were raised by the respondents to the survey which are relevant to you as a leader.

43% of the respondents worried about becoming too reliant on AI. On top of that, 35% of entrepreneurs are anxious about the technical abilities needed to use AI efficiently. Furthermore, 28% of respondents are apprehensive about the potential for bias errors in AI systems.

Another significant concern was the potential impact on the workforce. 33% of survey participants expressing apprehension that AI implementation could lead to a reduction in the human workforce.

There is also potential for providing misinformation to either the business or its customers. I’d spoken about the ChatGPT fake case laws earlier. This survey reveals it can happen in any industry.

The data reveals that 30% of respondents are concerned about AI-generated misinformation. 24% worry that it may negatively impact customer relationships.

Additionally, privacy concerns are prevalent, with 31% of businesses expressing apprehensions about data security and privacy in the age of AI.

So where does that leave you, the leader?

For starters, you need to focus on upgrading your technological skills. Invest in your own learning instead of waiting for your employer to finance your learning.

There are courses on Udemy and Coursera that will help you raise your awareness and knowledge.

Be proactive in helping your organization create policies and procedures. Keep abreast of the laws and regulations of your country and those with which your company does international business.

At the same time, identify the competency gaps in your team or department. Start planning for their learning and development in the coming months.

Your skills as an emotionally intelligent leader will be challenged as you help navigate the new terrain for your people. You will meet resistance at change and the older employees may feel they might be made redundant.

Embracing technology and especially artificial intelligence is going to be a challenge for you not only as a professional but also as a true visionary leader.

Are you ready to step up to the plate? It’s your call. This is Vatsala Shukla for Karmic Ally Coaching signing off. Bye for now.