Coaching for Leaders Episode 710: Becoming an AI-Savvy Leader with David De Cremer
In episode 710 of "Coaching for Leaders," host Dave Stachowiak engages in an insightful conversation with David De Cremer, the Dutton Family Dean of the Damore McKim School of Business at Northeastern University. De Cremer, an expert in management and technology, discusses the transformative impact of Artificial Intelligence (AI) on leadership and organizational dynamics. Drawing from his book, "AI Savvy Leader: Nine Ways to Take Back Control and Make AI Work," De Cremer provides a comprehensive guide for leaders aiming to effectively integrate AI into their organizations.
1. The Unique Nature of AI Transformation
Philosophical Shift [02:43]: De Cremer emphasizes that AI represents a fundamentally different kind of technological transformation compared to previous advancements. Unlike innovations that have primarily outsourced physical tasks, AI is now outsourcing cognitive functions. He poignantly states,
“We're outsourcing our brain as well, our mind as well” [02:43].
This shift raises profound questions about the essence of human roles and intelligence in an AI-augmented world.
Societal Impact and Anxiety [04:07]: The widespread impact of AI has led to significant societal anxiety. De Cremer notes,
“People want to go back to their emotions because we live so much in our head” [04:07].
This anxiety stems from fears about AI replacing human cognition and altering the fundamental ways we live and work.
Expectations vs. Reality [06:09]: There is a notable disparity between the high expectations surrounding AI and the actual outcomes of its implementation. De Cremer points out,
“Business leaders today expect so much more of AI than they expected in the 90s from the Internet” [06:09].
This discrepancy often leads to misunderstandings about AI's capabilities and its practical applications within organizations.
2. Challenges in AI Adoption
High Failure Rates [06:38]: De Cremer reveals a concerning trend: up to 80% of AI adoption projects fail to create the expected value. This failure is not due to the inability to implement AI but rather the difficulty in generating real business value from it.
“Most AI adoption projects fail to upscale, so create value. And this is twice as much as any other digital transformation project where no AI is involved” [10:58].
Misalignment Between Leadership and Technology [06:38]: A primary reason for these failures is the disconnect between business leaders and AI implementation. De Cremer criticizes the tendency of leaders to treat AI adoption as a purely technical exercise, often delegating it to tech experts without strategic involvement.
“Business leaders were never involved… It’s treated as an engineering exercise” [06:38].
The J Curve of AI Implementation [08:00]: AI adoption follows a J-curve pattern: initial implementation may lead to decreased performance as organizations adjust, but long-term integration can result in substantial value creation. Patience and strategic alignment are crucial for navigating this curve effectively.
3. The Critical Role of Leadership in AI Integration
Behavioral vs. Technical Challenges [11:30]: De Cremer highlights that AI integration is more of a behavioral challenge than a technical one. Leaders must foster an environment of trust and willingness to adopt AI, ensuring that human elements remain central in workflows.
“AI adoption is a J curve. It doesn't reveal itself right away. It's also not an engineering exercise only. It's more of a behavioral exercise” [11:30].
Visionary Leadership [13:26]: Effective leaders must set a clear vision for AI usage that aligns with organizational goals. De Cremer advocates for viewing AI as a tool to augment human capabilities rather than replace them, fostering innovation and creativity.
“Human intelligence, artificial intelligence is like comparing apples and oranges. It's not the same, but together they'll produce so much more” [13:26].
Communication and Collaboration [20:45]: Successful AI adoption requires seamless communication between tech experts and business units. AI-savvy leaders act as narrators, bridging gaps and ensuring that AI initiatives align with business objectives and stakeholder needs.
4. Developing AI Savviness in Leadership
Defining AI Savviness [25:28]: AI savviness does not require leaders to become coders. Instead, it involves understanding fundamental AI concepts, recognizing its limitations, and knowing how to ask the right business questions.
“You need to have the right kind of data and then you understand, oh, but what are the right kind of data?” [25:28].
Lifelong Learning and Adaptation [24:07]: AI is an ever-evolving field, necessitating continuous learning and adaptability from leaders. Staying informed about advancements allows leaders to guide their organizations without needing deep technical expertise.
“It's a collective lifelong learning lesson, AI adoption” [24:07].
Human-AI Collaboration [29:12]: De Cremer distinguishes between AI-driven and AI-enabled companies. He strongly advocates for the latter, where AI is used as a tool to enhance human intelligence and organizational goals, rather than allowing AI to dictate direction.
“AI serves human intelligence” [29:12].
5. Practical Strategies for AI Integration
Asking the Right Questions [10:58]: Leaders must prioritize strategic business questions that AI can address, ensuring alignment with organizational objectives. This approach prevents AI projects from becoming mere technological exercises with little tangible value.
Creating a Collaborative Environment [20:45]: Breaking down silos and fostering collaboration between departments ensures that AI initiatives are well-integrated and supported across the organization. Transparent communication about AI’s role and benefits is essential for buy-in and successful adoption.
Building a Clear Narrative [25:28]: Developing and communicating a coherent narrative about AI’s role within the organization helps in aligning stakeholders and mitigating resistance. Leaders must articulate how AI aligns with the company’s mission and values.
6. Evolving Insights and Reflections
Managing AI Hype and Perception [30:22]: De Cremer reflects on the societal influence on AI perceptions, acknowledging that human expectations and fears contribute significantly to the current AI hype. Leaders must manage these perceptions to set realistic expectations and reduce unwarranted fears.
“We are always responsible for the hype of AI as much as AI is” [30:22].
Self-Fulfilling Prophecies [30:22]: He notes that societal narratives often shape the trajectory of AI development and adoption, creating self-fulfilling prophecies. Leaders must be aware of and actively manage these narratives to foster a balanced and constructive AI integration.
Conclusion
Episode 710 of "Coaching for Leaders" provides an in-depth exploration of the pivotal role leadership plays in the successful integration of AI within organizations. David De Cremer offers a nuanced perspective, emphasizing that AI should be viewed as a tool to augment human intelligence rather than a replacement. By fostering AI savviness, promoting continuous learning, and maintaining clear strategic alignment, leaders can navigate the complexities of AI adoption and unlock its full potential for enhancing organizational performance and innovation.
Notable Quotes
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David De Cremer [02:43]: “We're outsourcing our brain as well, our mind as well.”
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David De Cremer [06:38]: “Business leaders were never involved… It’s treated as an engineering exercise.”
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David De Cremer [13:26]: “Human intelligence, artificial intelligence is like comparing apples and oranges. It's not the same, but together they'll produce so much more.”
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David De Cremer [25:28]: “There's a difference between companies who say we have an AI driven company or an AI enabled company. AI is not the end game. Humans are. AI serves human intelligence.”
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David De Cremer [30:22]: “We are always responsible for the hype of AI as much as AI is.”
Further Resources
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David De Cremer’s Book: "AI Savvy Leader: Nine Ways to Take Back Control and Make AI Work"
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Related Episodes:
- Episode 612: "How to Solve the Toughest Problems" with Wendy Smith
- Episode 649: "How to Begin Leading through Continuous Change" with David Rogers
- Episode 674: "Principles for Using AI at Work" with Ethan Malik
For more insights and resources, visit CoachingforLeaders.com and consider activating a free membership to access the extensive leadership and management library.
About the Hosts and Production
Coaching for Leaders is independently produced weekly since 2011 by Dr. Dave Stachowiak, leveraging over 15 years of leadership experience at Dale Carnegie. Edited by Andrew Kroger and with production support from Sierra Priest, the podcast has garnered 40 million downloads and holds the #1 search result for management on Apple Podcasts.
This comprehensive summary captures the essence of the conversation between Dave Stachowiak and David De Cremer, providing valuable insights into AI’s role in modern leadership and offering practical strategies for successful AI integration in organizations.