Anu Mariam Ninan, Assistant Professor, DCSMAT Vagamon
Artificial Intelligence is no longer a science fiction scenario; it’s a contemporary phenomenon transforming the very fundamentals of management in every industry. Coupling of AI technologies, especially Machine Learning (ML) and Generative AI (GenAI), is forcing a profound shift towards taking organizations from the exclusive use of human intuition towards
making decisions with data-driven insights for better efficiency and strategic performance. Here, the role of AI and its impact at the management level is explained by the best AI college in Kerala, DCSMAT Vagamon.
AI’s impact can be classified within multiple key management areas:
Data-Driven Decision Making AI is better at processing enormous amounts of data at velocities inconceivable for humans, extracting intricate patterns and correlations. This enables managers to: Predict Market Trends: Utilize predictive analysis to forecast changes in customer behavior and market requirements. Optimize Operations: Examine real-time data to automate supply chains, control inventory, and optimize logistics. Decrease Bounded Rationality: Shift from a satisficing frame to an optimizing state through having more detailed, data-driven information for each decision.
AI is taking over mundane and repetitive functions, directly affecting resource allocation:
Task Automation: Repetitive tasks such as data entry, report generation, and even preliminary AI can undertake phases of tasks such as resume screening.
Strategy Focus: By delegating these activities, managers and workers are relieved to focus on high-value work involving creativity, critical thinking, and strategic planning.
Finance Transformation: In accounting, GenAI is automating the creation of reports and analyzing data, making the function more of a strategic business growth driver.
The implementation of AI is remodeling job titles and skills needed for leadership:
Replacement versus Augmentation: For most managers, AI is a complement to human judgment, especially at more senior levels. Operational and middle managers might have more supervision and administrative work automated.
Transition to Interpersonal Skills: With routine work being taken care of by AI, there is a growing need for soft skills like communication, persuasion, emotional intelligence, and complex problem-solving. These are the skills AI cannot complete.
AI Fluency: Workers and managers need AI fluency—the hands-on capability to employ, prompt, and combine AI tools effectively—to amplify their productivity. Organizations need to spend significantly on experiential training to fill this gap.
The accelerated embrace of AI is not without challenges, and it needs proactive management:
Data Security and Governance: Greater dependence on AI demands sound data governance and sound cybersecurity to safeguard confidential information.
Bias and Fairness: AI systems tend to reinforce biases in past training data. This needs to be actively managed by managers to deliver diversity and inclusion.
Reliability of AI Outputs: As AI may produce believable but inaccurate content (occasionally referred to as LLM brain rot when modeled on bad data, human critical thinking and source analysis are still crucial to AI output verification.
Rewiring the Organization: The real value of AI lies not in simply inserting it into current systems, but in entirely reengineering processes in accordance with its strengths. This will require courageous leadership goals.
Learn more about AI by pursuing a BCA from the best AI college in Kerala, DC School of Management and Technology, Vagamon. Learn it professionally from the well-qualified faculty of DCSMAT
