Ethical and Strategic Leadership in the Age of AI: The Frontier of Research and Practice

Artificial intelligence (AI) is changing the way industries and societies work at an incredible pace. It's streamlining processes, sparking innovation, and reshaping what's possible. Yet, as AI becomes more embedded in business operations, it prompts crucial questions for leaders: How can they leverage its capabilities strategically while ensuring they align with their organizations' values, ethics, and culture?

In a recent event hosted at The Ivey Business School Hong Kong Campus, Ivey's Dean, Dr. Julian Birkinshaw, moderates a distinguished panel of AI leaders and pioneers to explore the strategic and moral imperatives tied to Generative AI. Through real-world stories and personal experiences, the panel offers grounded advice on harnessing AI's potential while addressing key barriers and unanswered ethical questions.

Balancing Strategy and Ethics in AI Leadership

When it comes to adopting Generative AI (GenAI), Dr. Birkinshaw emphasizes the need for leaders to balance strategic and moral imperatives that come along with this emerging technology. He highlights the strategic necessity of resisting AI's "forces of convergence," which streamline solutions but risk stifling creativity. Urging leaders to foster environments where unique, creative thinking can thrive, Dr. Birkinshaw advises that we resist the temptation to follow AI-driven trends carelessly and ensure leaders "push against these forces... to ensure that we continue to look for the thing that allows us to stand out from the crowd."

Dr. Birkinshaw goes on to emphasize the ways in which leaders must ensure that AI supports meaningful and fulfilling work while preserving essential human qualities such as creativity, empathy, and critical thinking. Leaders must align AI with these values, ensuring technology contributes to our well-being, fosters fairness, and helps tackle societal issues.

Lessons from AI Pioneers: Insights from Alibaba and Beyond

"The Internet does all the work of getting the buyer and the seller together... but we had to educate the Subject Matter Expert bosses so that their second generation [can become] proficient," says Savio Kwan, former President and COO of Alibaba.

The discussion highlights valuable insights on an important principle of transformation: embracing new technology isn't just about satisfying current users. It must empower future generations to harness innovation. Drawing on his time working with Jack Ma during Alibaba's early years, Kwan likens the disruptive rise of the internet to the current wave of AI. Drawing parallels between these two technological changes, he notes that the internet depended on both innovation and the need for mass education and adaptation — efforts that demanded a "boot on the ground" approach to overcome resistance and build understanding. Kwan's insights serve as a reminder for leaders to stay resilient and adaptable as AI continues to evolve, recognizing its potential to transform markets and industries just like the internet.

Engaging Employees in the AI Journey

Successful transformation begins with fostering trust and curiosity among employees. Understanding that people might be worried about AI, the panelists agree that it is crucial to involve employees right from the start of the integration process.

There are many creative approaches to help ease employee concerns. One expert suggests "safe sandboxes" along with fun initiatives like Shark Tank contests, which allow employees to dive in and get comfortable with AI in a supportive environment. Opportunities like this provide employees with training and opportunities to showcase" their ideas. It is a great way to create some buzz about possibilities and create momentum within the organization. The group also notes that one of the biggest challenges is in educating executives. Helping senior leaders understand AI's potential is crucial for a successful transformation.

Navigating Ethical Challenges and Governance

With ethical AI governance a recurring theme, the panel emphasizes responsible AI development while continuing to explore effective governance frameworks to minimize risks as AI becomes deeply enmeshed in decision-making processes. The role of AI does not stop at operational efficiency: there are vital questions related to the use of fair data and principles of anti-bribery.

“If generative AI initiated a bribe, who would be responsible?"

This question underscores the ethical complexities leaders must navigate as AI takes on increasingly autonomous roles in organizations. To address these challenges, organizations must implement clear usage policies to manage risks and prevent bias and unintended consequences. Dr. Birkinshaw challenges leaders to reflect on how AI tools impact workplace values: "Next time you think about the use of an AI tool in your workplace, […] say to yourself, is this tool going increase my employees' autonomy, belonging, competence, or is it actually going to undermine those things?" 

The Transformative Potential of AI in Business

While all three experts agree that the integration of AI tools is already delivering immediate efficiencies, especially in areas like coding, document analysis and customer service, they also warn that the transformative potential of AI is only now unfolding. ”Its full impact on industries, workplaces, and regulatory environments far from certain” says Dr. Birkinshaw, noting, "Every new technology, no matter how good, opens up fresh questions about how people will choose to employ it.”

While the potential for AI continues to evolve and its long-term impact remains uncertain, what is most certainly evident is a simple fact: to survive, leaders must adapt, experiment, and navigate this unfolding terrain with thoughtful intention.