Artificial Intelligence (AI) is revolutionizing the way businesses operate. More often than not, companies are seeing the benefits of integrating AI into their everyday operations, and management is no exception. While there’s still a long way to go, the concept of an AI manager is gradually gaining momentum, with compelling arguments on both sides of the discussion. In this article, we delve into the various perspectives on AI management, drawing insights from a recent BBC report on the topic.
A Breath of Fresh Air
Hannu Rauma, a senior manager at Student Marketing Agency, found that managing his 83 employees was taking a toll on him. Frustration and disappointment often clouded his outlook, affecting his enthusiasm for bringing new clients on board. That’s when the company decided to experiment with an autonomous AI manager developed by US-based firm, Inspira.
The AI manager was introduced to help the agency’s remote-working employees manage their schedules and workloads in advance. It kept track of their timekeeping, sent deadline reminders, and recorded the time spent on different clients. The AI’s broad spectrum of features also included answering work-related queries, suggesting improvements to written text, and updating everyone’s work progress in a centralized portal.
The AI manager not only reduced Rauma’s stress levels but also boosted his employees’ productivity. “I’m able to focus on the growth of the company and all the positive things. It’s added years to my life, I’m sure,” he says. He also noticed a significant improvement in his relationships with his employees, shifting from a father-child dynamic to an equal footing.
A Comparative Study: AI vs. Human Management
Rauma and 26 of his 83 employees were part of a research study conducted by Inspira and academics from Columbia University, Arizona State University, and the University of Wisconsin. The study aimed to compare the performance of the AI manager with its human counterparts. Participants were divided into three groups: one coached by a human manager, another by the AI manager, and the last group by both AI and human manager.
The study revealed that the AI manager achieved a 44% success rate in getting employees to pre-plan their workdays in advance and motivated them to log in on time 42% of the time. These figures were comparable to the human manager, who achieved scores of 45% and 44% for those two areas. Interestingly, when the AI manager worked in partnership with a human manager, they achieved a 72% success rate in pre-planning workdays and a 46% on-time log in rate.
While the study was statistically small and focused on a specific type of worker and field, its results point to interesting implications for companies introducing AI tools.
A Perspective From Academia
While companies like UPS, Klarna, and Dell have announced significant job cuts this year, intending to replace many roles with AI, Professor Paul Thurman from Columbia University in New York argues that completely swapping management roles for AI would be a mistake.
“The middle management layer is the most critical layer in any organization,” says the professor. “They’re the layer that, if it starts turning over, you’re in for a wild ride. Your people don’t see continuity, they don’t get mentoring and coaching… all the human things that human managers are better at than AI and should be focusing on.”
Thurman believes AI can liberate managers from routine tasks, enabling them to focus on more innovative ways of working. He also warns against using AI managers as a surveillance tool. “You want to find the right way to encourage the right behaviors,” he advises.
The HR View
Tina Rahman, founder of London-based HR consultancy, HR Habitat, believes that AI managers can be beneficial for people who excel in their roles and end up managing people as a result, despite management not being a natural skill for them.
“We did a study which looked at the reasons people leave a job. Almost 100% of the respondents said it was because of bad management,” says Rahman. “You’d assume that an AI manager would be built to give those correct instructions, to give complete transparency on the requirements, and the outcomes. People are likely to be more productive when they know what’s expected of them.”
However, Rahman cautions against an over-reliance on AI management, warning that it may send the wrong message to employees. “It’s going to be very hard for a business to tell their employees that they’re introducing this brand new AI system that’s going to completely manage them, then say, with the same face, that ‘we care about your experiences in the workplace,'” she says.
The Cybersecurity Angle
On the other hand, James Bore, managing director of cybersecurity consultancy, Bores, warns against the potential cybersecurity risks of AI managers. He suggests that having an AI manager managing all of a company’s processes and intellectual property could make the business a target for cybercriminals.
“The more you automate, and the more you remove people from your business, yes, you’ll bring down costs. But you will also make your company more replaceable,” he says.
Conclusion
The discussion around AI managers is indeed multifaceted, with potential boons and pitfalls on either side. As with any technological advancement, it is crucial for businesses to approach AI management with a balanced perspective, considering all factors from productivity and employee satisfaction to privacy and cybersecurity.
