Leadership and Organizational Transformation in the Era of Digitalization Powered by Artificial Intelligence – An Analysis of Challenges and Opportunities

Abstract

“Digitalization” and “AI (Artificial Intelligence)” are the buzzwords that are gainingmaximum attention and traction from industry and society.The process of fundamentally changing how things are done, leveraging digitaltechnologies into various aspects of business, society, and daily life, is calledDigitalization. A technology that can make dumb machines smart enough to mimichuman-like intelligence, i.e., human cognitive functions, is called AI (ArtificialIntelligence).The fusion of AI and digitalization brings with it a plethora of challenges, that includeworkforce reskilling, ethical consequences of AI, data privacy risks, and the need foran agile and adaptive organization. Along side the challnges, brings a bag full ofopportunities like enhanced operational efficiency, improved productivity, reducedcosts, enhanced decision-making, novel business models, and personalizedcustomer engagement. The role of leaders becomes paramount. Leaders arerequired to develop expertise in AI and digital technologies and their organizationalimplications. They must champion and lead change with a culture of continuouslearning, agility, and adaptability.Given the context, the objective of this thesis is,To explore the complex interplay between leadership, organizational transformation,and AI-powered digital transformation.Uncover invaluable insights that can empower leaders to enjoy the benefits of AI byaddressing the challenged and commplexities in AI-powered digital transformation.Literature review and empirical research involving surveys or / and interviews withexperts and leaders in the field are the methods used to perform the research.The research indicates that, There are potential benefits from the opportunitiespresented by artificial intelligence and to reap these benefits leaders andorganizations must successfully navigate through the challenges presented by AI withtransformational changes in leadership and organizations. The neededtransformations can be better understood and only through detailed understanding ofthe opportunities and challenges presented by AI.