Conceptualizing the Impact of AI and Automation on Leadership, Human Capital and Organizational Performance

Abstract

Humanity is at the brink of the Fourth Industrial Revolution which is poised to change businesses, industries and societies. While there is plethora of technologies on offer, Artificial Intelligence (AI) is touted as the most disruptive technology of them all as AI will have deeper and broader impact on businesses, workforce and on industries at large. Transformational leaders envision the possibilities of performance improvements via AI technology and developing the strategies to digital transformation. However, this paper aims to conceptualize the novel impact of the digital transformation in terms of AI and automation on organizational performance by scrutinizing the impact of AI on two key elements, to transform the leadership and human capital, that are used by all organizations in their performance measurement approaches and models. Our investigation was conducted by way of an extensive literature review and found significant implication on factors selected. The investigation also revealed that AI and automation will also have significant implications on the configuration of the future organization. Considering these implications, we postulate that organizational performance metrics of today need to evolve significantly to measure performance of future organization.