Incorporating artificial intelligence (AI) into the digital transformation landscape marks a pivotal shift, introducing challenges and modifications to managerial job roles. Research by the University of Eastern Finland illuminates how embedding AI systems within service teams elevates the demands placed on middle management, particularly in the financial services sector. This industry has witnessed a rapid deployment of AI, which can now undertake a substantial portion of tasks traditionally performed by humans. In this evolving workplace, professionals frequently find themselves in hybrid teams composed of human employees and AI systems, necessitating a recalibration of expectations surrounding interaction, human relationships, and leadership.
This detailed analysis, spearheaded by Jonna Koponen, Saara Julkunen, Anne Laajalahti, Marianna Turunen, and Brian Spitzberg, and funded by the Academy of Finland, was showcased in the esteemed Journal of Service Research. It delves into the experiences of middle management as they navigate the integration of AI systems into their workflows within the financial services domain.
The study engaged with 25 seasoned managers from a premier Scandinavian financial services entity, which has extensively integrated AI into its operations in recent years. The findings underscore the complexity of AI integration into service teams, highlighting the nuanced demands it places on middle managers. These managers find themselves performing a delicate balancing act, addressing novel challenges, while the introduction of AI allows for the offloading of routine tasks, thereby enhancing productivity. Despite the rapid pace of change and increasing job demands, the shift enables managers to allocate more time to developmental work and innovation. Yet, the advent of AI also introduces new routine tasks, particularly in monitoring and overseeing AI operations, as Assistant Professor Jonna Koponen pointed out.
A notable aspect of the study revolves around the evolving social dynamics within management, influenced by perceptions of AI as a technological tool or a team colleague. This distinction becomes particularly pronounced with integrating advanced AI forms, such as chatbots, which are often anthropomorphized and considered team members. Such developments prompt the reevaluation of team interpersonal relationships and raise concerns about job security among employees wary of new AI implementations.
The ethical implications of integrating AI into workplace practices also emerged as a significant concern for managers, who now invest more time pondering the fairness and impact of AI-driven decisions. The research underscores the necessity for middle managers to acquire diverse skills, encompassing technological proficiency, interpersonal communication, emotional intelligence, and adaptability to manage effectively in an AI-integrated environment.
Despite AI’s capability to automate various tasks, the study concludes that AI systems are yet to fully replicate the human aspects of management, such as motivating and inspiring team members. Therefore, Koponen advocates a greater emphasis on empathetic and interactive skills when recruiting new managerial personnel for roles that involve leading AI-integrated teams. This nuanced approach to leadership in the age of AI reflects a broader understanding of the complex interplay between technology and human management, underscoring the evolving nature of leadership roles in the modern workplace.
More information: Jonna Koponen, Saara Julkunen, Brian Spitzberg et al, Work Characteristics Needed by Middle Managers When Leading AI-Integrated Service Teams, Journal of Service Research. DOI: 10.1177/10946705231220462
Journal information: Journal of Service Research Provided by University of Eastern Finland