Is your C-suite AI-literate?

Three opportunities…

• Superior output throughout

AI – particularly GenAI – enables businesses to improve the quality of output at all organizational levels. Senior leaders have the experience and honed judgment to evaluate AI-generated suggestions and to direct the implementation of the strongest ones.

• A fresh pair of (artificial) eyes

Personalized coaching and support is another AI-enabled opportunity for executives. AI can elevate learning and development support to new levels; for example, by giving executives AI “sidekicks” to act as a personal, always-available (and never-complaining!) assistant.

• Adding value to the people function

AI can also help deliver value in the HR domain. HR departments are already using AI to streamline recruitment processes, but this can be extended to help optimize talent management throughout the business.

… and three risks

• Cognitive offloading

There is much to be excited about, but increased executive use of AI also exposes organizations to new risks. “Cognitive offloading” – whereby humans lose foundational skills when they repeatedly let technology take over – is a major concern. Even when AI is available, executives must preserve and exercise their analytical skills, their ability to innovate, and their capacity to work empathetically with colleagues.

• Bias and hallucination

GenAI is far from a perfect solution. Problems around bias and hallucination are well-documented. GenAI applications tend to try to please their masters – to the point of inventing answers where none exist. Senior leaders must work with IT teams to ensure that GenAI challenges prejudices and conventional thinking, rather than reinforcing them.

• Fragmented regulatory environment

Like other senior leaders, CHROs must pay close attention to the regulatory environment evolving around AI. At the global level, the landscape is highly fragmented. The EU’s AI Act, for example, designates the use of AI for hiring and promotion as “high-risk.” Organizations operating in the European market should be aware of such sensitivities to avoid falling foul of regulatory divergence.