AI isn’t for cost cutting, it’s a tool for value creation

For many leaders, AI looks like the secret recipe to profitability: cut headcount and automate more processes, leveraging exciting technology. But while leaders look there, they are missing the bigger opportunity in front of them—using AI as a complement to increase value. 

Daily shifts in geopolitics, combined with an influx of generative AI ‘solutions’, give leaders a chance to use their imagination to explore how new tech can help organizations shape the future instead of reacting to it. 

Modern leadership requires entrepreneurial thinking that can solve real-world problems. It means equipping emerging leaders to maneuver through a changing world by focusing on being useful and creating value. 

Cost-Cutting Obsession to Value Creation Opportunity

Many organizations focus their AI use only on driving costs down, but today’s leadership needs to shift to value creation. Instead of asking how many employees AI could replace, leaders should explore how AI can be a complement to their teams. More personalization and reliability—or supercharging humans—can result in more value.

“You can incorporate AI, but you have to think about it task by task. You cannot cost-cut yourself to prosperity—it means you’re losing talent and creating uncertainty, while AI might not live up to expectations. Increasing value is the correct way to think about it as a manager.”

An easy way to consider if a person is creating value is to ask, am I useful to the organization? For leaders and managers who can look at AI with a critical lens, human-AI collaborations will create new paths for value and use, instead of just lowering overhead. 

Entrepreneurial Thinking as a Leadership Skill

With shifts and uncertainties, entrepreneurial thinking becomes critical for every leader, not just start-up founders. This way of thinking is a set of transferable skills for all ‘agents of change’, regardless of industry or background. 

“Entrepreneurial thinking is solving real world problems for real world people in resource constrained environments. It’s how to mobilize, pitch your ideas and make sure that novel ideas become exposed.”

Leaders must cultivate the grassroots entrepreneurial thinking in their organizations at all levels—as CEO, you cannot be the only source of ideas. By leveraging innovation across team members, it helps ensure employees focus on finding their own personal ‘use’ to the organization and broader society. When they feel useful, employees will not be as fearful of AI replacing them. 

Step into Role of Chief Storyteller

Once ideas are flowing, they need proper direction. Innovation without a map can lead to chaos and creation for the sake of it. Leaders must set the direction for their teams, making sure employees aren’t generating ideas wildly, but understand where the organization is going and what ideas should see the light of day. 

“The main task of the CEO is to draw the vision of the future—to be the chief storyteller. Leaders may not know fully themselves, or it may change, but without the vision, their organizations will be frustrated.”

An example is Bell Labs, an idea factory formerly out of AT&T, which developed many technologies that changed society and improved systems—along with 11 Nobel Prizes. While ideas abounded, they focused on developing something to make telephones better or cheaper, under the leadership of Mervin Kelly. 

“Bell Labs can serve as an example of fertile ground and empowering everyone in the organization to think about how we can solve problems better—today, with the help of AI.”

 Stop adjusting, start growing

On top of technological changes, geopolitical shifts cause organizations to reassess constantly. A ‘wait-and-see’ approach puts leaders on the defensive, while shifting to a growth outlook can reframe almost every situation. Scenario planning becomes a powerful tool to identify sources of uncertainty and opportunities for growth.

“As a leader, you must speak from a perspective of growth. You might not have the perfect answer, but it creates a different trajectory.” 

Leaders can invite their teams to brainstorm situations where their organization could thrive, creating natural strategies and reframing sources of uncertainty as friends. It shows the competencies the organization needs, no matter the scenario. 

Final thoughts

AI is automating a lot of the ‘how’ in our organizations, but it’s up to leaders to anchor in their ‘why.’ Leaders and organizations that look for opportunities, instead of playing defense, are building insurance to persevere in a changing world. Above all else, becoming more useful to the world is more important than ever. 

A simple check for leaders: is your AI strategy focused on cutting costs, or empowering your team to solve real-world problems?