Beyond just tools: AI success hinges on human leadership
AI is everywhere, but why have so many been getting implementation wrong? Human leadership needs to be central in AI implementation, says Professor Mark Fritz, a renowned leadership expert, in discussion with Aous Chazal from Strategic Gears in the firm’s inaugural podcast.
The growing importance of AI has presented organizations with unprecedented opportunities, but its true value is unlocked not by the technology itself – it also takes real human leadership to successfully implement it, says Fritz.
AI adoption has been faster than previous disruptive technologies like the internet or smartphones. But despite that, a recent MIT study revealed a staggering statistic: 95% of AI pilot programs fail to move beyond the incubation phase. This striking contrast between adoption speed and implementation failure suggests a critical gap that begs to be addressed.
The knowledge-application disconnect
Professor Fritz immediately addresses a core misconception about success and learning:
“Knowledge is not the key to success. If that were so, the librarians would have been the most important people in the world. The key is to apply it. And I think we have to be much better at helping our leaders apply what they’re learning.”
This notion rings especially true in terms of the AI implementation challenge. While AI offers immense capabilities (economists project it could add $15 to $20 trillion to the global GDP by 2030), simply having the technology is not enough. Organizations often struggle to apply these new capabilities effectively and pilots to never reach full-scale operations.
The crucial role of context
AI, particularly tools like ChatGPT and its competitors, excels at answering the ‘what’ and ‘how’ of a task. However, Professor Fritz argues that this capability is essentially useless without human-provided direction.
“What you type in to ChatGPT is the script, is the context. And so it’s really about we need to have very strong context providers,” notes Fritz.
“You have to think about what you’re trying to achieve with the AI so that you get that benefit from it. If you don’t frame the context, you’re not going to get the benefit out of it.”
Leaders must articulate a clear vision for why and where AI should be used, framing the context so the tool delivers the desired benefit. Without this strong framing, organizations won’t receive the value they seek.
Implementation: More people, less tech
The path to successful AI integration is not unlike previous technological disruptions, but there is clearly more urgency this time around. Professor Fritz, who has experience with enterprise change dating back over four decades, including the early days of computers and implementing systems in Japan, highlights the consistent lesson: Implementation is all about the people and the leadership behind it.
To drive this change, leaders must embrace and utilize AI themselves to create effective role models within the organization. It is also important for organizations to train employees on AI – not just how it works, but how to use it for transformation. As Professor Fritz says, “We’re doing it with our people, not to our people.”
Fritz also notes the important of encouraging experimentation. Given the rapid pace of AI, waiting for the perfect solution is not really feasible. More realistic and effective plans can include running small, focused pilots and learning rapidly from the outcomes.
“I think we have to make some mistakes we just have to make them faster learn from them and then really put strong efforts into the things that we know are going to help us move forward,” Fritz adds.
To ensure lessons are learned and advocacy is strong, leaders should staff pilots with their most capable individuals. “Put your best people into these pilots because they’ll be the best disciples,” Fritz advises.
The mindset of the modern leader
The era of AI demands a new kind of leadership, one that moves beyond the traditional micromanager. Professor Fritz identifies three essential capabilities for the leader of the future:
1) Critical Thinking: The ability to discern “what’s most important” amidst complexity.
2) Systemic Thinking: Understanding how AI implementation links across the entire organization to maximize benefits.
3) Influencing and Alignment: Possessing the skills to align all stakeholders around the shared ‘why’ and ‘where’.
Changing culture through thinking and behavior
When designing change programs, Professor Fritz focuses on the cultural elements by asking two simple questions:
- “What’s the type of thinking you’d like to see more of happening consistently in your leaders’ minds?”
- “What behaviors would you like to see more of in your leaders and them doing it more consistently?”
The most successful companies will be those whose leaders become much better storytellers, capable of framing the future in a way that their people can personally connect to and see themselves as a part of. “Our leaders are going to have to be much better storytellers – people embrace things when they understand the story,” notes Fritz.
“But now the capabilities are so huge, those stories have to be much more robust so that people can see themselves a part of it. In other words, the companies that do very well are those that are able to explain a vision in a way that their people can personally connect to.”
