Title: Unleashing AI's Impact: Shifting the Power Dynamics in Modern Businesses
Since 2012, I've been integrating various AI solutions into corporations, primarily focusing on low-level technical processes such as recognizing license plates or facial recognition at turnstiles. However, the generative AI (GenAI) boom in 2022 evolved things dramatically. Now, AI solutions are actively used at higher levels, impacting decision-making processes from marketing and sales to in-house legal departments.
AI tools are being utilized to evaluate employee performance, identify unfinished tasks, and generate executive reports. This increased use of AI has brought hope for increased corporation efficiency and a long-term competitive advantage for many businesses.
However, this shift towards AI integration has also caused turbulence within corporations, altering established power balances. Let me share some key observations:
Classical Information Gatekeepers are Losing Power
In the past, managers relied on dedicated departments to structure data and create reports due to its vastness. But with GenAI, data access is simplified, and managers can generate reports and conduct analyses through prompts, making the role of traditional information gatekeepers less valuable.
Experts are Losing Exclusivity
Many corporate executives and professionals used their expert knowledge to gain power. However, with corporate LLMs accessible to GenAI and capable of synthesizing global knowledge, experts' power within corporations is diminishing. Employees are now cross-verifying answers with LLM systems, reducing the devaluation of expertise and traditional power within corporations.
The Dynamics of Decision-Making are Changing
Integrating LLMs into meetings and decision-making processes can significantly reduce bureaucratic maneuvering and classic bureaucratic procedures. For instance, LLM transcription of meetings and automatic generation of action points have eliminated the role of meeting secretaries, making meetings more dynamic and agile.
Operational Management Has Less Influence Over Executives
Historically, operational management influenced executives through primary information processing. However, with AI integration, the role of operational management is narrowing, as GenAI solutions handle data assessment, collection, and interpretation at the middle and executive levels.
Currently, corporations are adapting themselves to popular IT and AI solutions. It is cheaper to adapt than to customize, which is leading to the spread of best practices in management and organizational structures through software and AI.
In conclusion, the influence of IT solutions and automation at various levels is increasing decisiveness within corporations. Power is shifting from operational levels to executives and IT departments, which many corporations are addressing by introducing positions like Chief AI Officers. As LLMs continue to evolve, this power shift is likely to accelerate, and other departments will become more operational and less strategic.
Vitaliy Goncharuk, a renowned expert in the field, has been advocating for the role of Chief AI Officers in corporations to effectively manage the increasing influence of IT solutions and automation. His insights have been instrumental in helping corporations navigate the shift of power from operational levels to executives and IT departments due to the integration of AI.
The rise of GenAI has led to notable changes in the corporate world, and Vitaliy Goncharuk has been at the forefront of analyzing these transformations. His writings and speeches have highlighted the impact of AI on various sectors, including the diminishing power of traditional information gatekeepers and experts.