In a world where Artificial Intelligence (AI) is no longer just a buzzword but a driving force behind business transformation, executives face a new leadership challenge: How do you harness AI’s potential while maintaining human oversight and control? In my work collaborating with experts at the intersection of leadership, strategy, and digital transformation, we’ve seen firsthand how AI is not just a tool for efficiency—it’s reshaping the very concept of leadership.
As AI becomes increasingly embedded in organizations, leadership roles are evolving. My personal take is that leaders who can balance AI’s capabilities with human decision-making will be the ones who drive their organizations toward future success. Here’s what you need to know about leading in the age of AI.
The New Role of AI in Executive Leadership
AI offers leaders unprecedented opportunities to make smarter, faster decisions by processing vast amounts of data in real-time. AI-driven insights can help leaders foresee challenges and seize opportunities with a level of precision that was once unimaginable.
Andrew Ng, a leading AI pioneer, explains it best: “AI is the new electricity. Just as electricity transformed every major industry 100 years ago, AI will do the same today.” At Eller, we emphasize the importance of developing an AI-first mindset—where AI is integrated into the core of business strategy and decision-making.
Here are some actions that I recommend: leaders must first develop a deep understanding of AI’s potential and limitations, ensuring they can leverage it effectively without over-relying on automation. They should integrate AI into decision-making processes to complement human intuition with data-driven insights, allowing for more strategic and precise outcomes. Additionally, executives must foster a culture of continuous learning and innovation, where teams are encouraged to embrace AI tools and evolve alongside technological advancements.
How AI is Changing Decision-Making in Real Time
Leaders equipped with AI tools can make more data-driven, informed decisions. AI systems analyze patterns, identify risks, and even predict future market shifts. This transforms how executives lead—enabling them to move quickly and with more certainty.
Hsinchun Chen, our University of Arizona expert in AI and big data analytics, explains: “AI’s power lies in its ability to process vast amounts of data and provide insights that are impossible to achieve with human analysis alone.”
With AI transforming decision-making in real-time, my colleagues and I recommend that executives should invest in AI-driven analytics tools to gain access to real-time insights that can inform faster, more accurate decisions – provided they have the right data!
They must also train their teams to interpret AI-generated data effectively, ensuring that human intuition and expertise are integrated with machine learning outputs. Executives should set up agile decision-making frameworks that allow their organizations to quickly respond to AI-identified trends, risks, or opportunities. Finally, they should continuously monitor and refine AI systems, ensuring these tools remain aligned with evolving business goals and market dynamics, preventing reliance on outdated or biased information.
Maintaining Human Agency in an AI-Driven World
As AI systems become more autonomous, the nature of agency in leadership is changing. AI can now generate insights and, in some cases, make decisions without constant human intervention. While this creates efficiency, it also challenges leaders to rethink their roles. Who is truly in control—humans or AI?
Lex Fridman, an AI researcher, advocates for a collaborative future: “The future of AI must involve a partnership between humans and machines, working together to solve the most complex challenges.” At Eller, we stress that while AI can streamline decision-making, leaders must retain oversight and ensure their strategies align with human values and organizational goals.
To maintain human agency in an AI-driven world, executives must establish clear governance frameworks that define the roles and limits of AI, ensuring that critical decisions remain in human hands. They should foster a culture of collaboration between AI systems and human teams, encouraging the use of AI to enhance, rather than replace, human judgment. Executives must also implement ethical oversight committees that regularly review AI-driven decisions to ensure they align with organizational values and societal norms. Additionally, leaders should prioritize ongoing education and upskilling for employees, ensuring their teams are empowered to work alongside AI and retain a strong sense of agency and responsibility in decision-making.
Preparing Your Leadership Team for AI Transformation
As AI reshapes industries, the most successful leaders will be those who are ready to adapt. When our exec ed team engages organizations, we focus on helping leaders develop the critical skills necessary for AI-driven leadership:
AI Literacy: Leaders must understand the fundamentals of AI to ask the right questions and make informed decisions.
Data-Driven Decision-Making: Organizations that prioritize data and AI insights will have a competitive edge.
Agility and Adaptability: The rapid evolution of AI requires leaders to be flexible and continually evolve their strategies.
Leaders must not only embrace AI as a tool for efficiency but also as a strategic partner that enhances their decision-making abilities. Maintaining a balance between leveraging AI’s capabilities and ensuring that human judgment and ethical considerations remain central will be critical.
Conclusion: Leading in the Age of AI
As AI continues to reshape industries, leadership must evolve alongside it. The leaders who succeed will be those who can integrate AI into their decision-making processes without sacrificing human oversight.
While today’s AI systems function within narrow domains, the future could bring Artificial General Intelligence (AGI)—a development that may further disrupt how we think about leadership and decision-making. Although AGI remains on the horizon, preparing for a future where AI plays an even more autonomous role is crucial. How is your leadership team preparing for the rise of AI?
Dr. Joe Carella is Chief Learning Officer at Eller Executive Education and a distinguished leader in the field of strategy, decision making and executive education, known for his innovative approach to leadership development. As the former Assistant Dean of Eller Executive Education at the University of Arizona and the former Chief Learning Officer at Sierra Space, Dr. Carella has consistently demonstrated his ability to drive organizational success through strategic learning initiatives. During his tenure at Eller Executive Education, Dr. Carella was instrumental in developing programs that addressed key dimensions of executive learning, such as strategic decision-making and organizational readiness during turbulent times. His work has been recognized in leading publications, including Harvard Business Review, Forbes, BBC, CNBC and The Wall Street Journal, where he has shared insights on leadership challenges and sustainable growth strategies. Academically, Dr. Carella holds a Doctorate from the University of Trento. His research focuses on strategic decision-making and organizational preparedness, providing valuable frameworks for companies navigating dynamic and complex business environments.
