Change is difficult for everyone, but for large organizations, the process is even more complex. Over the last 15 years, we have seen large companies trying to embrace innovations such as mobile technologies, big data, cloud systems, and digital transformation. However, many organizations have struggled to implement these technologies. Today, artificial intelligence (AI) stands out as a new force that forces companies and their employees to change, whether they want to or not.
Technical Debt and Institutional Inertia
Some of these challenges stem from technical debt. Technical debt is the idea that an organization must evolve to take full advantage of new technologies over its existing technology stack. However, changing a business’s core elements without risking disruption is not easy. For this reason, many executives are hesitant to fully embrace this type of change. Big changes present big risks, as well as potentially big opportunities.
Another part of the problem is institutional inertia. It can be difficult for people to change their accustomed ways. For example, when a town registry office attempted to switch from paper-based transactions to a digital system years ago, employees were reluctant to give up their old ways. Traditional habits, such as stamping, represented employees’ sense of identity and power. As a result, they were allowed to retain these traditional habits so that they could be persuaded to change.
Change Management: Understanding People
Change management is the most difficult component of implementing a new technology. Getting people to embrace these changes is even more difficult than technical integration. Employees who resist change can sabotage even the best intentions of teams implementing solutions. Therefore, organizations must manage change with the human factor in mind.
Artificial Intelligence: A New Way of Working
AI has the potential to create unprecedented change in the way we work. While the transformations brought about by personal computers and the internet in the 1980s were profound, AI could have even more profound effects. Karim Lakhani of Harvard has stated that AI lowers the cost of knowledge transfer and redefines the value of expertise.
Box CEO Aaron Levie emphasizes that AI is changing the relationship with computers. Now computers are tools that evaluate decisions, analyze information, and process data in a human-like way. Therefore, companies must rethink the role of computing.
Generative AI and Its Challenges
One of the biggest challenges for organizations is understanding whether generative AI actually delivers increased productivity. At present, it is difficult to establish a clear link between AI capabilities and increased productivity, making it difficult to convince skeptical employees when implementing AI. On the other hand, there will be employees who demand new tools, which can create additional stress within the organization.
Creating Value and Managing Change
Some experts argue that companies must embrace this change, given the transformative potential of AI. However, it is important to find ways to create value in this process. Gartner analyst Rita Sallam notes that AI, like the first word processors, is creating a new way of working, and such changes bring great benefits.
Conclusion: The Imperative to Change with Artificial Intelligence
AI is a tool that will test organizational resilience more than any other technology in the past. This change process can be successfully managed with the support of leaders who understand the power of AI, without ignoring the human factor. However, these challenges will play a critical role in the change processes within large companies and may allow some companies to survive depending on their ability to adapt to AI.
