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Artificial Leadership

"Artificial Leadership" (or AI-Leadership) can be summarized as a leadership behaviour that integrates the inner influences and patterns of the algorithms (by a machine) and transfers them into a data-driven leadership style. On the one hand, AI as a machine is particularly strong at performing repetitive, routine tasks and thinking systematically and consistently. On the other hand, AI applications are already capable of performing creative and intuitive tasks (e.g., music compositions and art creations) and can thus also be used for exploration in the context of strategic corporate management for the consistent further development of the existing business. Therefore, "Artificial Leadership" (or AI-Leadership) can be defined as follows:

 

"Artificial Leadership" describes a style of leadership in which a machine (in the best case as an AI) not only obtains the required data via a Big Data approach (Digital Source), but can also evaluate it independently with the associated algorithms via a deep learning approach (Digital Analysis) and finally the resulting results are also accepted as an order for action by humans via a Data-Driven approach (Digital Decision).

 

Kollmann, T., Kollmann, K., & Kollmann, N. (2023): Artificial Leadership: Digital Transformation as a Leadership Task between the Chief Digital Officer and Artificial Intelligence, in: International Journal of Business Science and Applied Management , Vol. 18, Nr. 1, S. 76-95.

Cover_Artificial_Leadership_engl.jpg

Accordingly, the aim of this book/ebook is to highlight the area of tension between human and machine for corporate management. This is done in an exemplary manner in a subject area that is directly affected because here - as in no other area - data plays such a large role and is already available: The "Digital Transformation" for existing and the "Digital Innovation" for new business models and processes. This is where human (in the form of a Chief Digital or Information Officer - CDO/CIO with a Digital Leadership) and machine (in the form of an Artificial Intelligence - AI with an Artificial Leadership) meet directly. The result at the end is a model for the influence of AI on operational and strategic corporate management in the area of Digital Transformation, which can be used as a basis for further research and practical questions.

Note: The book is essentially based (but with some practice-oriented extensions) on the article by Kollmann, T./Kollmann, K./Kollmann, N. (2023): Artificial Leadership - Digital Transformation as a Leadership Task between the Chief Digital Officer and Artificial Intelligence, International Journal of Business Science and Applied Management, Vol. 18, No. 1, pp. 76-95 (Open Access; CC BY 4.0). The theoretical article can be accessed free of charge on the journal's website. However, for this book, the relevant contents were again specifically supplemented and current references were also newly included in order to further deepen the previous findings.

Definition

Digital Transformation between the "human" factor of a Chief Digital Officer and the "machine" factor of a Artificial Intelligence

Artificial

Leadership

Tobias Kollmann • Kilian Kollmann • Niklas Kollmann

Full Titel

Artificial Leadership: Digital Transformation as a Leadership Task between the Chief Digital Officer and Artificial Intelligence

Journal

Artificial Leadership: Digital Transformation as a Leadership Task between the Chief Digital Officer and Artificial Intelligence, in: International Journal of Business Science and Applied Management , Vol. 18, Nr. 1, S. 76-95.

Publication Date

24.04.2023

 

The article is available online here https://www.business-and-management.org/papers/artificial-leadership-digital-transformation-as-a-leadership-task-between-the-chief-digital-officer-and-artificial-intelligence/172/

Abstract

Abstract

Artificial Intelligence (AI) is increasingly being used in all business areas and will have a significant impact on the associated business processes. This will be particularly the case where data is the basis for an improvement as well as an acceleration of the associated workflows, because it is precisely this data that is the input for the algorithms of AI. However, the rapid progress in the performance of these algorithms will also increasingly lead to the output of the algorithms, which are not only being used to support data-driven business processes "for" humans, but also transitioning into data-driven business decisions where the AI will also provide the resulting instructions "to" humans. This will lead to a blending of the operational and strategic levels of Business Management and will raise many new questions for the related theoretical and practical foundations. This paper aims to highlight this area of tension, discuss the various theoretical influences, and identify the associated research needs. This is exemplified in an area that is directly affected by this field of tension because it is determined by data like no other: the "Digital Transformation" of existing, and the "Digital Innovation" of new, business models and processes as well as the associated corporate management in the form of "Digital Leadership". This is where the human (in the form of a Chief Digital Officer - CDO) and the machine (in the form of Artificial Intelligence - AI) will meet directly. At the end - based on a decision-making theory for a homo economicus vs. a machina economica - there is the first draft of framework for the influence of AI on operational and strategic Corporate Management, which can be used as a basis for further research and practice-related considerations. In this context, the term "Artificial Leadership", as a further development of "Digital Leadership", is also introduced and defined for scientific research for the first time.

Background

The Chinese company NetDragon Websoft has appointed Tang Yu as the company's CEO. So far, so good, except that Ms. Yu is not a human, but an Artificial Intelligence (AI). As CEO, she takes on all the activities typical of the job, such as evaluating top-level analyses, making management decisions, assessing risks and setting measures to increase efficiency in the workplace. And she do this 24 hours a day, seven days a week without pay. The German company Aqua Römer Mineralbrunnen also uses an AI called "Mary", which independently controls and gives instructions to logistics employees in the warehouse via radio. Companies will not only hire the best employees and managers in the future, but also the best AI-Algorithms and give them leadership tasks.This leads to a new topic that we have to deal with - the "Artificial Leadership" and the question of "where", "when" and "how" will an AI make business-relevant decisions and give instructions in this regard to humans as employees? Artificial Intelligence (AI) is increasingly being used in all areas of business and will have a significant impact on the related business processes. This will be especially the case where data will be the basis for an improvement as well as an acceleration of the associated workflows, because it is precisely this data that is the input for the algorithms of an AI. However, the rapid progress in the formative and transformative performance of these algorithms will increasingly also ensure a new positioning of AI in the context of corporate management. In this context, AI will no longer be used merely as a "support tool" for an employee in data-driven business processes, but will in future also act as a "decision-making authority" towards this employee and subsequently also give him or her the resulting work instructions.

Digital Leadership

Digital Leadership

According to Kollmann (2022), Digital Leadership describes a management style in which a person (in the best case as Chief Digital Officer) not only wants the Digital Transformation (Digital Mindset), but also has the necessary knowledge for this Digital Transfor­mation (Digital Skills) and can finally also consistently implement the resulting measures within the frame­work of the Digital Transformation (Digital Execution).

 

(see Fig. 1 as an english version of german original publication). 

https://www.amazon.de/Digital-Leadership-Grundlagen-Unternehmensf-C3-BChrung-Wirtschaft-dp-3658372532/dp/3658372532/

Digital Leadership_Abb_engl_3.jpg

Digital Mindset

The Digital Mindset is understood as the inner basic attitude and positive attitude toward already known and new digital possibilities. This includes openness and curiosity about digital technologies and forms of work, questioning existing procedures and processes, and the will to proactively bring about changes in the future.

Digital
Skills

Digital Skills are understood as concrete background knowledge and know-how rela-ting to digital business models and processes in relation to the digital economy. This includes basic knowledge of digital data as well as the resulting digital value creation for processes, products, platforms, and related developments.

Digital Execution

Digital Execution refers to the content-related and organizational implementation or management of digital projects and/or the associated company in the course of the Digital Transformation of existing real business or the establishment of new digital business models and processes.

Artificial Leadeship

Artificial
Leadership

Artificial Leadership describes a style of leadership in which a machine (in the best case as an AI) not only obtains the required data via a Big Data approach (Digital Source), but can also evaluate it independently with the associated algorithms via a deep learning approach (Digital Analysis) and finally the resulting results are also accepted as an order for action by humans via a Data-Driven approach (Digital Decision).

 

https://www.business-and-management.org/papers/artificial-leadership-digital-transformation-as-a-leadership-task-between-the-chief-digital-officer-and-artificial-intelligence/172/

Artificial_Systems_Management.jpg

Data
Source

In the context of the Big Data approach, the Data Source describes the necessity  of the data that is provided to a higher-level AI for an analysis being made available in sufficient quantity, variety, speed, and quality.

Data
Analysis

In the context of the deep learning approach, Data Analysis describes the possibility of the algorithms that are used for an analysis learning more with each calculation and thus being allowed to improve continuously; the higher-level AI is allowed to make adjustments independently.

Data
Decision

In the context of the data-driven approach, Data Decision describes the consequence of the results that are obtained from the analysis being comprehensible to humans; thus, the resulting orders of action are accepted.

Framework

In merging the fundamentals of "Digital Leadership" for a leadership model for Digital Transformation in a company, the respective axes (existing/innovation business and operational/strategic management) must now be merged with the thrust of exploitation and exploration. This results in two fields of action in particular, where Digital Leadership would be more advantageous in terms of decision making and implementation (see Figure).

In merging the fundamentals of "Artificial Leadership" for the leadership model for a Digital Transformation in a company, the respective axes (existing/innovation business and operational/strategic corporate management) must now be merged with the thrust of exploitation and exploration. This results in two fields of action in particular, where Artificial Leadership would be more advantageous in terms of decision making and implementation (see Figure).

Framework_Artificial_Leadership.jpg

Digital Leadership

Digital Leadership as Exploitation in the Context of the Innovation Business for Operational Leadership

 

  • Future business is analyzed by a leader at the operational level via the available capabilities and existing data on internal business processes/models (competence-oriented exploitation).

  • Insights are formed based on the digital mindset and digital skills of the leader and transferred into an individual digital execution for future production and/or work processes according to predefined target agreements (digital transformation). 

  • Individual decisions also lead to immediate or mid-term effects on the work instructions to members of an organization (data-driven directives by humans).

 

Digital Leadership as Exploration in the Context of the Innovation Business for Strategic Leadership

 

  • Future business is analyzed by a leader at the strategic level via the discovery of new opportunities and the generation of new knowledge about internal and external business processes/models (competence-oriented exploration).

  • Insights are formed based on the digital mindset and digital skills of the leader and transferred into an individual digital execution for future business models/processes according to self-generated opportunity and risk rules (digital revolution).

  • Individual decisions also lead to indirect or long-term effects on the organizational development of the organization (data-driven development by humans).

https://www.business-and-management.org/papers/artificial-leadership-digital-transformation-as-a-leadership-task-between-the-chief-digital-officer-and-artificial-intelligence/172/

Artificial Leadership

Artificial Leadership as Exploitation in the Context of the Existing Business for Operational Leadership

  • Existing business is analyzed by AI at the operational level via the available capabilities and existing data on internal business processes/models (data-oriented exploitation).

  • Insights are formed based on non-self-learning algorithms and transferred into auto-mated decisions for the execution of existing production and/or work processes according to predefined efficiency and effectiveness rules (digital automation).

  • Automated decisions also lead to immediate or short-term effects on the work instructions of the members of an organization (data-driven directives by a machine).

Artificial Leadership as Exploration in the Context of the Existing Business for Strategic Leadership

  • Existing business is analyzed by artificial intelligence at the strategic level via the discovery of new opportunities and the generation of new knowledge about internal and external business processes/models (data-oriented exploration).

  • Insights are formed based on self-learning algorithms and transferred into automated digital execution for the further development of existing business models/processes according to self-generated opportunity and risk rules (digital evolution).

  • Automated decisions also lead to indirect or medium-term effects on the organizational development of the company (data-driven development by a machine).

https://www.business-and-management.org/papers/artificial-leadership-digital-transformation-as-a-leadership-task-between-the-chief-digital-officer-and-artificial-intelligence/172/

Authors

Prof. Dr. Tobias Kollmann   -> LinkedIn 

Owner of the Chair of Digital Business and Digital Entrepreneurship, University of Duisburg-Essen, Universitaetsstr. 9, 45141 Essen, Germany  tobias.kollmann [[at]] uni-due.de

Prof. Kollmann has been working on scientific issues related to the Internet, Digital Business and E-Commerce since 1996. His research results have been published in international A-Journals such as Entrepreneurship Theory and Practice (ETP), Journal of Business Venturing (JBV), Strategic Entrepreneurship Journal (SEJ) and Journal of Management Information Systems (JMIS). According to FAZ, he was among the 100 most influential Economists in Germany in 2018, 2019 and 2021 with "weight in media, research and politics." 

Kilian Kollmann, M.Sc.    -> LinkedIn 

Management Department, Frankfurt School of Finance & Management, Adickesallee 32-34, 60322 Frankfurt/M., Germany

Niklas Kollmann, B.Sc.   -> LinkedIn

Faculty of Business Administration, Ludwig-Maximilians-University Munich, Geschwister-Scholl-Platz 1, 80539 Munich, Germany

Open Access

Open Access 

This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made.

 

The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit 

http://creativecommons.org/licenses/by/4.0/.

 

Cite the article

Kollmann, T., Kollmann, K., & Kollmann, N. (2023): Artificial Leadership: Digital Transformation as a Leadership Task between the Chief Digital Officer and Artificial Intelligence, in: International Journal of Business Science and Applied Management , Vol. 18, Nr. 1, S. 76-95.

Cover_Artificial_Leadership_engl.jpg

Accordingly, the aim of this book/ebook is to highlight the area of tension between human and machine for corporate management. This is done in an exemplary manner in a subject area that is directly affected because here - as in no other area - data plays such a large role and is already available: The "Digital Transformation" for existing and the "Digital Innovation" for new business models and processes. This is where human (in the form of a Chief Digital or Information Officer - CDO/CIO with a Digital Leadership) and machine (in the form of an Artificial Intelligence - AI with an Artificial Leadership) meet directly. The result at the end is a model for the influence of AI on operational and strategic corporate management in the area of Digital Transformation, which can be used as a basis for further research and practical questions.

Note: The book is essentially based (but with some practice-oriented extensions) on the article by Kollmann, T./Kollmann, K./Kollmann, N. (2023): Artificial Leadership - Digital Transformation as a Leadership Task between the Chief Digital Officer and Artificial Intelligence, International Journal of Business Science and Applied Management, Vol. 18, No. 1, pp. 76-95 (Open Access; CC BY 4.0). The theoretical article can be accessed free of charge on the journal's website. However, for this book, the relevant contents were again specifically supplemented and current references were also newly included in order to further deepen the previous findings.

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