With the rise in AI, will knowing ‘stuff’ become redundant?

Barry Thomas, AI Leadership Mentor

What does AI readiness mean to you, and why is it crucial for leaders today?

AI readiness is a multi-faceted concept that demands a deeper understanding from leaders, especially today. The term “AI” itself is incredibly broad, encompassing a vast array of technologies, methodologies, and applications that have been evolving over several decades. It’s only recently that AI has captured the public imagination, primarily because of the advent of generative AI models like ChatGPT. These conversational AI systems have given AI a more tangible and interactive face, making it feel almost human in its interactions. However, it’s important to recognise that AI isn’t a monolithic entity; it can mean vastly different things to different businesses depending on how it’s applied.

For a business, AI readiness isn’t just about adopting the latest tools; it’s about understanding the profound and varied impacts AI can have across the organisation. On one end of the spectrum, AI might be as simple as integrating a tool like ChatGPT into everyday operations – a task that’s accessible to almost anyone due to the availability of free versions. On the other end, AI readiness might involve a company investing billions of dollars to develop and train a proprietary AI model tailored to specific needs. These scenarios represent vastly different levels of commitment, resource allocation, and strategic planning.

At every level, though, one thing is consistent: AI signifies change – rapid, relentless, and often disruptive change. The speed at which AI technologies are evolving outpaces anything we’ve seen before, and it requires leaders to be more agile than ever. This means they need to continuously learn, adapt, and be ready to pivot strategies as new AI capabilities emerge. In essence, AI readiness is not just about having the tools in place; it’s about cultivating a mindset and organisational culture that can thrive amid continuous transformation.

How is AI affecting modern business leadership?

AI is fundamentally reshaping the landscape of modern business leadership, injecting an unprecedented level of uncertainty into strategic planning and decision-making. The rapid pace at which AI technology is advancing makes it incredibly challenging to predict future developments, even in the near term. This uncertainty creates a significant challenge for leaders who have traditionally relied on long-term planning to guide their organisations.

In the past, leaders could reasonably project a three-to-five-year horizon and make informed decisions based on historical data and trends. However, with AI, those traditional planning models have become almost obsolete. The technology is evolving so rapidly that even freezing AI development at its current state would leave us with years of catching up just to fully integrate and utilise existing capabilities. The variance in how AI will impact different sectors adds another layer of complexity, making it nearly impossible for leaders to have a clear, long-term vision.

For example, I recently spoke with an engineering firm considering a major software acquisition to overhaul their systems. One of the critical pieces of advice I had to give them was to avoid overcommitting to a long-term plan based on current assumptions. The software and services available today are likely to change dramatically in the next 12 to 24 months, rendering any long-term investment potentially obsolete before it even pays off. In this environment, flexibility and resilience become paramount. Leaders must build organisations that can pivot quickly, adapt to new realities, and continue to thrive despite the uncertainty.

The introduction of AI also means that leaders must be prepared to navigate an increasingly complex and volatile landscape. They need to foster a culture that embraces change and encourages innovation while also maintaining stability and morale within the organisation. This balancing act is perhaps one of the most significant challenges facing modern leaders.

Can you think back to your own first experience of AI in a leadership role?

My engagement with AI dates back to the early days of my career, and it’s fascinating to reflect on how the field has evolved since then. In the ’90s, I worked on developing expert systems for training audiologists using cochlear implants, a niche but important application of AI at the time. Back then, AI was more of an intellectual curiosity—an interesting tool that could perform specific tasks within a narrow context. It was largely experimental, a sort of “plaything” for those of us who were curious about the potential of technology.

However, AI truly became a central focus for me, as it did for many others, with the advent of generative AI models like ChatGPT. When ChatGPT emerged, it was immediately clear that this was not just another incremental improvement in AI technology. It represented a significant leap forward, particularly in its ability to manage and distil vast amounts of unstructured information into coherent, actionable insights. This was especially valuable in the context of complex projects that required broad consultation and input.

At the time, I was serving as an Assistant Secretary in the Federal Treasury, working on a major economic reform project. The project was technically complicated and involved layers of legislative and regulatory complexity. The success of the project depended heavily on our ability to engage with stakeholders, ensuring that they understood the proposals and could provide meaningful feedback. However, the sheer volume of information- legal documents, economic data, policy briefs made this a daunting task. It was nearly impossible for any individual to keep up with all the details, which posed a significant risk to the quality of our consultations.

This is where AI, specifically ChatGPT, became incredibly valuable. We could feed large volumes of complex information into the AI, and it could generate summaries that were not only accurate but could be tailored to different audiences. Whether we needed to explain a concept in simple terms or translate it into another language, the AI made it possible to communicate more effectively and inclusively. This experience was a turning point for me, as it demonstrated the practical, transformative power of AI in real-world leadership and decision-making contexts.

Since then, I’ve continued to explore and integrate AI into various aspects of my work. The ability to manage and simplify complexity is, in my view, one of the most immediate and impactful uses of AI. It allows leaders to make better decisions by providing clearer insights and enabling more effective communication across all levels of an organisation.

Is AI influencing innovation? How do you see this playing out in the workplace?

The influence of AI on innovation and personal skills development is profound, and it’s already challenging many of the traditional assumptions we’ve held about work, learning, and value creation. There’s a growing debate about whether relying on AI tools is “cheating” or whether it’s simply the next logical step in human technological evolution.

Some people might argue that using AI to perform tasks that we traditionally did ourselves – like writing reports or analysing data diminishes our personal skills. But I would counter that by saying it’s analogous to the shift from horseback riding to driving cars. Technology has always been about augmenting human capability, not diminishing it.

However, it’s undeniable that AI is disrupting the very fabric of how we value knowledge and skills. For centuries, our educational and professional systems have been built around the accumulation of knowledge – whether through formal education or on-the-job experience. Your ability to know things, to recall information, and to apply that knowledge effectively has been the cornerstone of professional success. But with AI, that paradigm is shifting rapidly. Knowledge is becoming commoditised and, in many cases, devalued. Why spend years learning a subject in depth when an AI can provide you with the same insights in seconds?

This shift has significant implications for innovation. Traditionally, innovation has been driven by individuals or teams with deep expertise in a particular field. They would leverage their knowledge to create new products, services, or processes. But in a world where AI can generate ideas, designs, and even entire business models with minimal human input, the role of human creativity and innovation becomes less clear-cut.

Consider the entrepreneurial landscape: the conventional wisdom has always been to create a business model that can scale – often through franchising or automation – so that it generates passive income. But with AI, someone could easily reverse-engineer your business model, replicate it, and even improve upon it using AI tools. The barrier to entry for many industries will be significantly lowered, leading to an environment where traditional competitive advantages may no longer hold.

What does this mean for personal skills development?

I believe we’re entering an era where the most valuable skills will be those that AI cannot easily replicate – at least not yet. These include critical thinking, ethical decision-making, emotional intelligence, and the ability to navigate complex social dynamics. The ability to curate, interpret, and make decisions based on AI-generated insights will be crucial. In essence, while AI can do a lot of the heavy lifting, the human role will increasingly focus on judgment, ethics, and the strategic application of AI capabilities.

This presents a significant challenge for leaders. They must not only keep pace with AI developments but also help their teams develop these higher-order skills. The transition will be difficult, and not everyone will adapt successfully. Leaders will need to foster an environment of continuous learning and adaptability, where employees are encouraged to develop these new skills and where the organisation as a whole can remain flexible and resilient in the face of rapid change.

How do you think AI will change the nature of leadership over the next five to ten years?

The evolution of AI is poised to fundamentally alter the nature of leadership in ways that are both exciting and daunting. In the next five to ten years, I believe we will see a transformation in what it means to be a leader, driven by the integration of AI into every aspect of decision-making, strategy, and interpersonal dynamics.

One of the most immediate changes will be the presence of AI as a constant companion and advisor to leaders. Imagine a world where every leader has an AI assistant that can provide real-time insights, second-guess decisions, and offer strategic advice based on vast amounts of data. This is not science fiction; it’s an imminent reality. AI will become an indispensable tool, offering leaders the ability to analyse scenarios with unprecedented depth and speed, predict outcomes, and make informed decisions in real time.

However, this raises complex ethical and practical questions. With AI handling so much of the cognitive workload, what is the leader’s role? The traditional model of leadership – where decisions are made based on experience, intuition, and a deep understanding of human dynamics will need to evolve. Leaders will need to develop new competencies, particularly in areas like ethics, privacy, and the human impact of AI-driven decisions. They will also need to ensure that the use of AI does not erode the trust and personal connections that are essential to effective leadership.

Furthermore, AI will likely blur the lines between leadership and management. Traditionally, leaders focus on vision, strategy, and inspiration, while managers handle the operational aspects of running an organisation. But as AI takes over more of the routine and operational tasks, the distinction between these roles may diminish. Leaders will need to be more hands-on with technology, integrating AI into their daily work and using it to enhance both strategic and operational outcomes.

The role of AI in performance management is another area that will see significant change. AI will enable leaders to monitor not just productivity but also the emotional and psychological well-being of their teams. This could lead to a more holistic approach to management, where leaders are not just focused on outputs but also on the overall health of the organisation. However, this also raises concerns about privacy and the potential for surveillance. Leaders will need to navigate these issues carefully, balancing the benefits of AI with the need to protect employee rights and maintain trust.

In terms of organisational culture, AI will likely drive a shift towards greater transparency and accountability. With AI tools providing detailed insights into every aspect of the business, leaders will be held to higher standards of performance and ethical behaviour. This could lead to more open and transparent leadership styles, where decisions are made with input from AI but are also subject to scrutiny from both employees and stakeholders.

In summary, the next decade will see AI become deeply integrated into leadership, reshaping not only how leaders make decisions but also how they interact with their teams and manage their organisations. The challenges will be significant, but so will the opportunities. Leaders who can successfully integrate AI into their work while maintaining a strong ethical and human-centered approach will be well-positioned to thrive in this new era.

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