Welcome.

To The Leadership Lounge, a place to kick back and listen as our experts dissect some of the biggest questions leaders face today. I'm Emma Coombe, Managing Director in our London office. Today, we're here to talk about something that has the potential to have a huge impact not only on the business landscape, but on the world as we know it. In this episode, we're covering the hottest topic of conversation right now, Generative AI. Interest in this technology skyrocketed earlier this year when ChatGPT, a large language chatbot, reached 100 million users in just two months. It's hard to get your head around. Since then, according to figures from Boston Consulting Group, 80% of business leaders are already using GenAI in their own work, and 94% of business leaders agree that GenAI is critical for success. According to stats from Deloitte, Many experts have said GenAI has the potential to bring transformation akin to the Industrial Revolution. There's no going back. The genie is well and truly out of the bottle. And while the majority of business leaders are using this game-changing technology in some capacity, it's also true that there is a fair bit of anxiety around the change as well.

The reality is that ChatGPT catapulted us to the future way faster than any of us were expecting. We're in a high stakes moment and many people have a lot of questions. In times of seismic transformation, how do you keep up? Will GenAI change what our definition of a good leader is and what traits should you hone in order to succeed in a GenAI-driven world? In this episode, our experts are here to unpack some of these questions and help leaders navigate this exciting and complex moment in history. But before we do, remember to share any burning questions you want our experts to answer by emailing redefiners@russellreynalds. Com. We look forward to hearing from you. Okay, we've got lots of questions to ask our experts, so let's dive in. It seems we've already moved from a moment of hype about GenAI to, Okay, this will be sticking around and impacting our lives for years to come. I know that Joe Goary, a Managing Director in our Stanford office, wanted to speak about this important moment in time for leaders. Joe, how important is it that leaders embrace change?

I think the most important thing that leaders can appreciate is that AI has evolved to this moment in the hype cycle, but that looking forward, it is going to be very central to how a lot of businesses operate, which means that as a leader, the best thing you can do is better familiarize yourselves with the opportunities as well as the limitations that exist with the technology. I think much like any other massive organizational transformation, the leaders that are going to emerge as most successful are the ones that can identify, prioritize, communicate, and then deliver against the value of the promise of some of these things. So that means how are we able to really effectively wrap our arms around full range of opportunities that AI might have the possibility of delivering?

You're so right, Joe. Gen AI tools don't look like they'll be going anywhere, so leaders need to get familiar with them and fast. As we've mentioned, so much has changed in the last year. We wanted to bring Harpreet Kharana, our Chief Digital Officer based in our New York office, in on the conversation to understand how leaders can keep up. Harpreet, you've had a busy year. How can we best separate the hype from reality?

The first thing to do is to get a discussion going inside your organization. Use channels like Slack to ask questions, test hypotheses, validate ideas, and tap into the collective brain of your organization. The second thing to do is to plan around future scenarios in an AI-first world. What does the future board meeting look like in the world of AI? Or what does talent onboarding and learning and development look like in the world of an AI copilot? As you think about these scenarios, you can really crystallize the threats and opportunities in this new world. And then the third thing, there is no substitute getting your hands dirty with the technology. I remember when Chad, GPD came on the scene, I watched a lot of videos, read a lot of white papers, but the penny really dropped when I started playing with the technology myself. And when you play with the technology, you can really see the limitations as well as the opportunities and threat really helps you separate the hype from the reality.

Very powerful and wise words there, Harpreet. Let's get into the nitty gritty of how GenAI will impact leadership. Now, I wanted to bring Fawad Badwar, a Managing Director from our Toronto office, into the conversation. Fawad, what do you think this moment means for leaders today? Do you think GenAI will change our definition of what it means to be a great leader?

We don't think the definition of a great leader, per se, will change. Leaders will still be required to set the strategy for their organization, lead their teams, deliver results, as well as build deep relationships. What we do think AI will create a difference is going to be a nuanced way. It will make the leaders more strategic and faster if they can add AI tools and technologies to their toolset.

Really, it won't necessarily change the definition of what it means to be a good leader, but in my mind, it will give leaders a greater range of opportunities to consider and the possibility for their organization to develop at a much faster pace than it has done historically. To get value from GenAI, leaders need to view it as a thought partner, as something that can help them think through challenges and to see alternative perspectives synthesizing huge amounts of information online into crisp arguments so it can act as a sparring partner to challenge their way of thinking. Joe, what are some of the other things that GenAI can best help leaders with?

The most important thing to remember is that AI is a enhancement technology. It's something that can really augment and help organizations and individuals go to the next level. And so there's understandably going to be changes into our workflow. There's going to be changes in terms of how we engage with different technologies. I think the biggest change for leaders to think about is how can we ask better questions? What are the things that will help move the needle the most. That's very similar to the type of actions that you're trying to take today. The only difference is you're going to have access to a much broader array of information sources to help inform that.

So that's one of the biggest opportunities of Generative AI, providing leaders with a wealth of information to help decision making and therefore, refocus their time. The introduction of GenAI tools provides leaders with the opportunity to upskill to learn something completely new. Previously, tasks that took a huge amount of time can be automated. It's really exciting to think about how workforces can now use that time for more value-added tasks. We recently surveyed 1,000 leaders at Russell Reynolds as part of our global leadership monitoring center. We found that almost a third of senior leaders are already developing training around GenAI for their workforce, whilst less than a tenth stated that their organization had participated in workforce reductions. Whilst there has been a lot of talk around skills erosion, I really hope with GenAI that the opportunity here is for organizations to upskill their workforce to take them away from manual tasks to much more value-added activities. Harpreet, I know you wanted to say something about some of the risks as well as the opportunities of GenAI.

We are what I call in the flashlight App moment. Remember when we got an iPhone and we were so excited about getting the flashlight app? Well, guess what? The iPhone can be used for a lot more than that. We're very early in our evolution of AI, so don't be driven by the fear of missing out. Keep at it and look for use cases where AI can play a really important part. And then finally think of AI as a new type of worker joining the workforce. The example I give executives is when you have an intern joining the workforce, you want to use him or her and get the most out of it, but also don't necessarily give it mission-critical work. Think of this as a new type of worker entering the workforce and find the equilibrium between your job and where AI can help you.

I think that's such a powerful analogy, Harpreet. We're just scratching the surface of what's possible. Keeping that equilibrium, the balance between the leader's role and where GenAI can help is key. And Joe, are there certain skills or capabilities leaders should be honing to ensure they have what it takes to drive change forward in this new GenAI-driven world?

When we look at the opportunity to unleash the full potential of AI, there are a number of ways in which leaders can continue to grow. The first is by having a learning mindset. This is a technology that's evolving quite rapidly. And so the ability to think and be aware that ambiguity is going to be somewhat of the opportunity here is going to be critical. So learning mindset and the ability to embrace ambiguity and be entrepreneurial and building from these hurdles of opportunity that are given to us through these innovations are going to be important. I think lastly, it's about understanding in what situations we are comfortable having an AI solution drive the answer without human intervention and in what situations we believe it's important to have a human in the middle.

As you said, Joe, I think having a learning mindset is key when it comes to embracing new technology. We've seen time and again in our research and through experience that leaders who are the most successful in spearheading change are those who have a high learning quotient or LQ. These are leaders who have the curiosity to continuously learn, adapt and creatively seize opportunities. I think as a leader, especially in this current context, it's critical that you're not afraid to say, Hey, I might be in a senior position with tons of experience, but I'm not fluent in this stuff, and I'm open to learning more about the NAI. You won't have all the answers, but if you're a leader with a high LQ, you'll be comfortable inspiring others to pilot projects, to experiment with new technology, to get the workforce adapting to different ways of working. I think for leaders, they need to remind those around them that human qualities such as critical thinking, moral judgment, and creativity, these things are not going to be replaced by a bot. We've covered some of the critical leadership skills that set successful leaders apart in this GenAI-driven world. Thouad, what's your advice for the next generation, for aspiring leaders looking to advance in the GenAI space and how to navigate through it?

When looking for opportunities and moving your career forward, look for organizations that have a history of innovating in the past, identify what they've done with previous technology, Revolutions, and how they've leveraged those, or try to understand how they are fundamentally thinking of this differently. Ask them the question around, if this is a priority, where does it sit in your list of priorities? If this is an investment you want to make, what decisions have already been made and what decisions have to be made in terms of this becoming a reality for the organization? Most of all, be open minded. You don't want to just stick to certain industries. Of course, you want to be impact-driven as you look at these opportunities and be more open when it comes to compensation, which has been a key driver in this space for several years now.

You're totally right, Fawad. It's so important to choose the right organization. You want to work for an organization where innovation is a priority, an organization where it's embedded into its foundation. That's the key to success. Our time in the land today has come to an end. In 30 seconds, here's what we've learned about GenAI. Leaders must recognize that GenAI is only one piece of the transformation jigsaw. The importance of a learning mindset when navigating through periods of change, why it's critical that leaders get their own hands dirty with the technology. Genai is an enhancement technology, but it's only as good as the information you feed it, and it depends on how people use it. For more dynamic insights from our leaders, listen to Leadership Lounge wherever you get your podcasts. And if you have any topics or burning questions you would like us to cover in future episodes of Leadership Lounge, then get in touch. Email your questions to redefineus@russellrenalds. Com, or you can find us on LinkedIn and follow us on X, formerly known as Twitter @rraonleadership. Until next time, goodbye.