This article has been written by Sritam Mukherjee pursuing a Remote freelancing and profile building program from Skill Arbitrage.

This article has been written and edited by Shashwat Kaushik.


35% of businesses in the world were utilising artificial intelligence by the beginning of 2023. Around 42% of businesses are planning to use it in the future. In the rapidly changing business dynamics of the 21st century, artificial intelligence has become a crucial aspect of leadership. This article focuses on the arguments and insights from different scholarly works that focus on how leaders can utilise AI to develop decision-making processes, involve innovation, and navigate the complex ideas of the workplace. Leaders are encouraged to promote business values, enhance automation to streamline protocol, streamline the user experience, and encourage sustainable development.

While encouraging values related to AI, innovation, and sustainable development, leaders need to focus on self-awareness. To understand the scale of the impact of leadership on an international level, leaders need to work on self-awareness. The prediction of artificial intelligence enables leaders to understand goals and outcomes better than ever. This quality of AI helps leaders plan their growth strategy. When growth takes place at the centre of leadership trajectories, simulation and planning become pertinent.

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Along with the importance of different roles, performance and planning, business operations, and client experience, leaders need to understand the gaps in service or product management. AI can also leverage that with its data-driven technologies.

Multifaceted approach of AI to leadership 

Visionary leaders are always encouraged to include automation practices and prioritise value through automation. Leaders are required to navigate the AI revolution successfully to help employees and customers. The analytical power of AI and the empathy of human nature create a combined system to reveal efficiency. This process leads to sustainable growth.

AI’s impact on leadership decision-making

Leaders are required to focus on the following areas to implement AI fruitfully:


Leaders can utilise artificial intelligence to enhance prediction systems. Prediction is necessary for both product and service management. AI leverages a better product or service design model with its predictive analogy.


Once the leaders have a better prediction system, accurate decisions can be made. An organisation gets a competitive edge if its decisions regarding the product or service launch process and strategy are better. Artificial intelligence can create designs to align with different support teams that can help design, branding, and sales professionals launch any service or product.


Along with prediction and decision-making activities, leaders must adhere to compliance. Every business process should be compliant with the policies that the organisation is supposed to follow. To determine any non-compliant activities, artificial intelligence can be introduced. With advanced tracking systems and functional and personalised responses, artificial intelligence can identify any unusual transaction.

Workplace management

The most beneficial area is workplace management. The main pillars of workplace management refer to project management, internal communication, and people management. Hence, people management is connected with human resource management; this point will be discussed later under AI in human resource management. All modern tools that keep track of all projects and manage emails and other databases are enhanced by artificial intelligence.

All-encompassing support to leadership

Artificial intelligence has the potential to revolutionise various areas of leadership. With the help of pattern-tracking abilities, compliance technologies, project management tools, decision-making abilities, and other man-management technologies, AI can transform traditional nuances of leadership into digitally enhanced leadership. Studies have shed light on this strength of artificial intelligence with the help of different real-life examples. Artificial intelligence can reduce different biases to get accurate research results. Research has become an important aspect of any project. Lattice, an artificial intelligence tool, helps leaders create goals, review performances, and track and manage team productivity. Tools like 15Five provide goal tracking and 1-on-1 interaction for better and more unbiased information.

To understand the variation of any data set or any survey result, it is important to go through a neutral process that will remove all the biases and carefully check all the outliers. While handling all these fundamental aspects of any research, AI can predict any trend, which will help businesses make any decision about their target audience. Leaders are finally responsible for enhancing the capability of the final product and capturing the right customer base. Handling feedback from senior management and other stakeholders can also be streamlined with the help of artificial intelligence. In this way, the delegation process is easily optimised. Once these administrative burdens are reduced, leaders focus on personal and organisational branding and goodwill.

With the advent of more online learning platforms and coaching systems, leaders can augment their learning process easily. Learning about artificial intelligence and learning through artificial intelligence are both beneficial for leaders. Accessing information on different demographics, sectors, markets, practices, and niches helps leaders understand the right protocol for organisations and management. AI can provide information through scrutinising performance-related data. Leaders can understand the gaps within the organisation.

AI for effective leadership : navigating the new frontier

While leaders learn new things, make effective decisions, delegate work, and manage projects, they also take action on potential risks. Artificial intelligence helps leaders identify potential risks from the market, customers, competitors, and within the organisation. Leaders can also understand potential risks in financial planning. While managing a company’s traditional assets, alternative assets, liabilities, equities, and other investments, leaders also need to understand the risks associated with profits. With the advent of cryptocurrencies, blockchain technology, and other financial technologies, tracking financial transactions and other assets has become easy for organisations. However, some potential risks can cause a breach of protocol. Leaders are accountable for these complex aspects of any business; hence, they require artificial intelligence to avoid those risks. With the help of AI data analytics, financial data can be easily analysed. Effective leaders can also introduce probable changes in the organisation with the help of artificial intelligence. Introducing and managing changes are often very complex, as internal stakeholders often do not encourage such changes. Due to their fear of adopting new things, employees often do not embrace changes. The leaders are responsible for conveying the need for change to all the internal stakeholders. Leaders can provide proper demos regarding the new things with the help of artificial intelligence tools. Showing demos is not enough, employees should go through a proper training programme where AI can be used for training.

AI in human resource management

Over the last 5 years, the use of AI in human resource management has increased by 70%. It is expected that this percentage will increase by the end of 2024. However, there are positive signs of more AI adoption in HRM, but there are certain challenges. With advanced AI tools, HR managers can easily check the performance of their employees. They also keep track of the goals of the individuals and their alignment with the organisational goal. With the help of AI, human resource managers have not only gathered performance information, but they have also found the right candidates for their organisation. AI tools have helped recruiters create job descriptions, analyse the gap between the existing workforce and requirements, and create the appropriate talent pool. Tools like, oorwin, Hirevue, Turing, Cogbee, and Hiredscore can create a customised job description based on the specific requirements of the recruiters. While creating the talent pool, these tools also helped recruiters set resume standards and match the standards with the applications. Along with resume standards, recruiters have also used tools to understand the body language and psychometric features of the candidates. After the outbreak of COVID-19, most of the interview processes were focused on online platforms. As the traditional process of recruitment was disappearing for a long period of time, it was important to have a proper digital system. While candidates were interviewed through video meeting tools, they also had to go through psychometric tests. These tests helped recruiters understand the right mental setup of the candidate, which helped HR managers select them. On the other hand, the tools in Crunchbase help aspirants target the right hiring manager based on the customised search results.

Reasons why AI is important for leadership and development

Artificial intelligence (AI) plays a crucial role in leadership and development due to its transformative capabilities and potential to revolutionise various aspects of organisational management and personal growth. Here are several reasons why AI is important for leadership and development:

  1. Enhanced decision-making:
    • AI’s advanced data analytics capabilities enable leaders to make informed decisions based on real-time insights and predictive modelling.
    • It provides access to vast amounts of structured and unstructured data, allowing leaders to identify patterns, trends, and anomalies that might otherwise be missed.
    • AI algorithms can simulate different scenarios and provide recommendations, empowering leaders to evaluate various options and make strategic choices.
  2. Personalised leadership development:
    • AI-driven learning platforms offer personalised development journeys tailored to individual needs, strengths, and areas for improvement.
    • It analyses performance data, identifies skill gaps, and recommends relevant training programmes, courses, and resources.
    • AI-powered coaching and mentoring programmes provide real-time feedback, guidance, and support, enhancing the development process.
  3. Augmented leadership skills:
    • AI tools can augment leadership skills by providing real-time assistance and insights.
    • Natural language processing (NLP) enables AI to analyse communication patterns, identify emotional cues, and suggest effective communication strategies.
    • AI-powered chatbots and virtual assistants can handle routine tasks and administrative duties, freeing up leaders’ time for more strategic and creative pursuits.
  4. Improved team collaboration and communication:
    • AI-driven collaboration platforms facilitate seamless communication and knowledge sharing among team members.
    • AI algorithms can analyse communication patterns, identify potential conflicts, and recommend strategies for effective team dynamics.
    • AI-powered translation and language processing tools break down language barriers, enhancing global collaboration.
  5. Data-driven talent management:
    • AI enables leaders to make data-driven decisions regarding talent acquisition, retention, and development.
    • It analyses employee performance, engagement, and skill sets, identifying top performers and potential leaders.
    • AI-driven talent management systems streamline recruitment processes, automate candidate screening, and match candidates with suitable roles.
  6. Predictive performance management:
    • AI algorithms can predict employee performance and identify individuals with high potential.
    • This enables leaders to invest in the right talent and provide targeted development opportunities.
    • AI-powered performance management systems offer continuous feedback, allowing employees to track their progress and make necessary adjustments.
  7. Risk mitigation and crisis management:
    • AI can help leaders identify and mitigate potential risks and respond effectively to crises.
    • It analyses historical data, monitors real-time information, and provides predictive insights to help leaders make informed decisions.
    • AI-powered crisis management systems automate emergency response protocols, facilitate communication, and track resource allocation.
  8. Ethical considerations:
    • As AI becomes more prevalent in leadership and development, ethical considerations become paramount.
    • Leaders must ensure that AI systems are designed and implemented in a fair, transparent, and responsible manner.
    • Ethical AI practices involve addressing issues such as bias, privacy, transparency, and accountability.


At the end of the discussion, it can be concluded that the inclusion of artificial intelligence in leadership development, effective decision-making, administrative support, and human resource management can be highly transformative. Prediction, workplace management, decision-making, and compliance management are some of the key roles where leaders can utilise artificial intelligence without any doubt. AI tools can help leaders keep track of the performance of individuals and teams with unbiased systems. These supporting tools not only help the leaders set goals and track productivity, but those tools also reduce the efforts of leaders by delegating work. AI data analytics tools can help leaders invest in the right assets and manage alternative assets, equities, and liabilities. Along with handling performance, decision-making, and other investment-related matters, AI can also provide support for the recruitment process. Enhanced recruitment tools can provide customised job descriptions to recruiters and job seekers. Hence, artificial intelligence has led to a paradigm shift in the way leaders develop themselves in the modern era.



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