Opinion
How to build business leadership for the AI era
At the heart of effective management lies the ability to navigate change. The rise of AI and Generative AI presents unprecedented challenges for executives, requiring them to both transform themselves and lead their teams through change.
One of the defining characteristics of organizations is their constant evolution. Companies must continuously adapt their products, processes, infrastructure, technologies, and workforce. Many of these changes are tactical and low-risk, with limited impact on the organization as a whole. However, there are moments when a disruptive event shakes the foundation of an organization, requiring a fundamental transformation.
The emergence of new technologies is one such event. We’ve seen this before—computing, the internet, mobile technology, ERP (Enterprise Resource Planning), CRM (Customer Relationship Management), BI (Business Intelligence) applications, and more have all forced organizations to reorganize in order to harness their full potential. The adoption of AI and Generative AI represents one of the most significant challenges facing businesses today, offering an unprecedented level of power to users—capabilities that would have been unimaginable just a year or two ago. Expectations are high: according to a PwC survey published ahead of the annual World Economic Forum in Davos, 70% of executives expect Generative AI to change the way their company generates economic value, while 80% of employees believe it will make them more efficient.
Change management is the discipline that integrates large-scale transformation seamlessly across an organization, mitigating risks, creating new business value, and rebuilding trust—between employees and management, and between the organization and key stakeholders such as suppliers, customers, and partners.
Executives in the AI era play a critical role in this process. Their responsibilities, as well as their roles, are being redefined. The automation provided by AI frees managers from overseeing routine tasks, allowing them to focus on strategic initiatives. This shift requires them to develop new skills, adopt a broader, long-term perspective, and foster innovation.
Managers must gain a deep understanding of AI technology—where it provides advantages, who the primary users will be, what their roles will entail, and which AI-driven processes will yield the highest value. They must also determine where human judgment will remain essential in decision-making.
Executives should view AI as a tool for employee empowerment rather than as a means to replace them. Strengthening employees' role within the value chain will reduce resistance to AI adoption and build trust in both management and the organization as a whole. Furthermore, managers must cultivate emotional intelligence among their teams—skills like empathy, communication, and relationship-building are becoming even more valuable in an era of automated, impersonal interactions.
Executives must also promote a culture of innovation and ongoing learning—both for themselves and for their employees. The rapid pace of technological advancement means that Generative AI capabilities in 2025 will far surpass those of 2024. As a result, organizations must keep up with an accelerating rate of change. Managers should encourage employees to experiment with new capabilities, take risks, propose fresh ideas, and learn from failures in order to ultimately succeed. A learning-oriented organization, guided by forward-thinking leadership, will be well-positioned to extract maximum value from AI and Generative AI advancements.
Finally, the evolving role of managers must include a commitment to ethical AI implementation—ensuring fairness, mitigating biases, complying with international standards, and upholding social norms. Addressing these critical concerns will further strengthen trust between the organization and its employees, customers, suppliers, and partners.
At the heart of effective management lies the ability to navigate change. The rise of AI and Generative AI presents unprecedented challenges for executives, requiring them to both transform themselves and lead their teams through change. Yet, as with any major shift, the magnitude of the challenge is matched by the scale of the opportunity.
The author is the founder and manager of the Israeli branch of global technology services company Concentrix.
