Impact of Artificial Intelligence on Management

Abstract

This study focuses on the impact of advancing Artificial Intelligence systems on management during the next decade. Much of the attention around Artificial Intelligence and work revolves around the replacement versus augmentation debate. According to previous literature, rather than simply replacing tasks, machine learning tools can complement human decision making. Based on semi-structured expert interviews, this study provides tentative evidence that this may be true for managers on the highest level of organisations, but perhaps less so for operational and middle managers who may find a larger number of their tasks replaced. As routine tasks of supervision and administration can be automated, the shift towards interpersonal tasks of leadership could continue for many managers. Two possible future scenarios are formed to illustrate how Artificial Intelligence may possibly impact management. In addition, algorithmic management is recognised as an important factor in the next decade as platform economy keeps growing. Having potential to replace tasks of the operative managers, it is important to continue research on fairer algorithmic management. Also for further studies it is recommended to evaluate AI’s impact on each level of managers separately, because of the disparate work tasks of operative, middle and senior managers.