Nearly 40 years ago, the Massachusetts Institute of Technology (MIT) published a path-breaking initiative titled ‘Management in the Nineties’, suggesting that the evolution of technology through phases of localized exploitation and internal integration would soon encounter a revolution in the form of business process reengineering, business network redesign, and finally, business scope redefinition.

Today, well into the 21st century, all leaders and managers take the recursive relationship between IT and business strategy for granted; only a corporate dinosaur would lack awareness of digital technologies.

If a similar research were conducted today, the focus would undoubtedly be on data, analytics, artificial intelligence, machine learning, and their impacts on business processes. Managerial responses must be calibrated based on the maturity level the firm has attained in data capture, ingestion, storage, and dissemination, as well as its comfort in making decisions based on predictive and prescriptive analytics.

However, amidst the plethora of ideas circulating among C-suite and board executives, it is clear that future leaders must manage and lead with automation and AI as strategic tools for capturing opportunities and dominating their industries.

Why is mastering AI essential?

What makes mastery of AI imperative in this evolving business landscape? For many months, especially after the emergence of newer versions of ChatGPT and the influence of AI on customer preferences across various sectors, most progressive firms have realized that leaders and managers who understand AI have nothing to fear; rather, it is the naysayers who bury their heads in the sand who risk being swept away by new capabilities.

Recently, however, a warning bell rang out. It became evident that technology should only be deployed after a thorough understanding of its potential hazards. On July 19, airlines and businesses worldwide experienced a significant disruption when a simple upgrade triggered a complex set of compiler failures, causing a near-ubiquitous software like Microsoft Windows to crash.

One might blame the testers, but as automation and AI increasingly take over testing and verification, who will be held accountable for future failures caused by AI?

How should leaders embrace AI?

In such a world, what should leaders do to embrace AI and provide thought and action leadership across functions and geographies? Our research for an upcoming book on leadership in the era of automation and AI reveals that leaders comfortable discussing their moments of epiphany and plans are taking robust action in three areas: enhancing their understanding of where AI can augment their organizations, encouraging experimentation with AI in every process, and ensuring that the entire organization is driven by data, with actionable insights presented timely.

This is a time for leaders to demonstrate their true mettle. Let AI be just one more tool in the arsenal of strategic weapons, deployed thoughtfully to bring managers closer to their teams, customers, and stakeholders. Leaders must set new goals for their organizations and deploy AI wisely to realize the potential that lies ahead.

The author is chairman of 5F World & Honeywell Automation India, and a board member of the Hinduja and SBI groups. All views expressed are personal.