The Impact of Artificial Intelligence on Organizations and Managers: The Skills Needed for an Effective Leadership

The chapter explores the impact of Artificial Intelligence (AI) adoption on organizations by investigating how managers have to adapt and reshape their leadership style. First, we describe how AI changes business management by shedding light on the adoption process and on AI’s main impacts. These mainly relates to organizational strategy, required skills, organizational culture, and human-AI interaction. Later, we point out the main practical applications of AI within organizations and how it can improve business processes. Finally, we explore the impact of AI on leadership to understand how managers should change to lead their organizations effectively. In particular, we focus on the heterogeneous skills, factors, and characteristics that managers need to make the most of the potentialities of AI.