Will Humans Outperform AI in Management?

How will human abilities stand out in an AI-driven future of management? As a psychologist in management, I have always felt confident in my ability to understand and navigate human dynamics, something that seemed beyond the reach of machines.

However, I was intrigued to read that an AI algorithm on Google’s DeepMind had helped people with disparate and conflicting opinions find common ground while discussing contentious social issues. The machine came up with statements that 56% of participants found reflected the views in the group and reduced divisions better than statements of human mediators.

While this AI experiment isn’t yet headed to our offices, it marks an interesting milestone. AI’s potential for consensus-building may not be too far from everyday use, as technology continues to develop rapidly. We’ll likely see similar capabilities available through common apps soon.

So, what will be left to human intelligence and judgment? The answer is still uncertain, but with AI evolving quickly, we would do well to stay updated on emerging capabilities.

Will AI Lead to Job Loss?

It’s likely that AI will replace some roles, as new technologies have done in the past. However, if history is a guide, AI may also generate new jobs. Technological advancements, such as personal computers and spreadsheet software, have previously shifted employment from workers with specific skills to those with other, often higher-paid, skills. Today, it’s more common to see someone replaced not by AI alone, but by someone skilled in using AI effectively.

A study in the Quarterly Journal of Economics found that technology’s impact on jobs often depends on whether it augments or automates existing roles. The researchers noted that technologies that augment human work tend to create jobs, while those that automate tasks can reduce them.

At present, AI often augments rather than replaces jobs, especially in management. Many professionals, myself included, are using AI tools to improve productivity, and I haven’t seen management positions lost to AI yet. However, as AI continues to evolve, the landscape may shift significantly.

Making Work More Engaging with AI

The 2024 Microsoft and LinkedIn Work Trend Index, which examines AI’s impact in workplaces, reinforces the view that AI can make jobs more engaging by reducing tedious tasks. In their research, over 90% of those who regularly use AI reported that it helps them manage overwhelming workloads and increases job satisfaction.

The study also found that 75% of knowledge workers now incorporate AI into their tasks, almost double the rate of six months ago. Interestingly, many leaders say they would hesitate to hire candidates who lack AI skills. This trend has led to concerns of ageism, with some employers screening out older applicants who they believe may struggle with AI.

The Risk of AI for Certain Job Functions

Yet, while AI can make certain aspects of work easier, it may also shift the nature of tasks. Automation sometimes removes more interesting parts of a job, leaving behind repetitive tasks. For instance, robots in manufacturing have reduced physical demands but also made some jobs more routine. Similarly, drug-dispensing machines in hospital pharmacies have allowed pharmacists more time for patient interaction, but pharmacy assistants may now find their roles reduced to machine operation.

On balance I am positive about the impact of AI on our lives, and in any case, we arenot going to stop it. So let’s make friends with the bots and hope they’ll let us manage them.

Jonathan Cook, a counselling psychologist, chairs the African Management Institute.

This is adapted from a column for Business Day, originally published on 29th October 2024. (https://www.businesslive.co.za/bd/opinion/columnists/2024-10-29-jonathan-cook-how-will-ai-affect-managers/)

If you’d like to read previous columns in this series or ask Jonathan a question please visit www.africanmanagers.com/jonathan-cook