Will AI in Management Replace Human Managers? Lessons from a Harvard Business Review Experiment

Recently, I've been contemplating the future of work, particularly with the rapid advancement of AI. One recurring question I have is: Will artificial intelligence (AI) eventually take over human managers in management? It's frightening, yet incredibly captivating it is possible AI in management.

I recently came across a fascinating experiment discussed in Harvard Business Review that delves into this precise question. They explored the role of AI in management through a unique simulation.

In the study, 344 people—a mix of students, professionals, and even some seasoned CEOs—were put head-to-head with ChatGPT-4 in a business simulation. The goal? To last as long as possible without getting "fired." I was naturally interested in comparing AI in management to human decision-making.

It appears that ChatGPT-4 performed better than expected. It often kept up with or even outperformed the human participants! But here’s where it gets really interesting: when things got unpredictable, AI in management started to struggle. Projects led by ChatGPT-4 fell apart when it had to deal with unexpected twists.

That got me thinking. Although AI excels at managing routine tasks and structured settings, humans have a distinct advantage in dealing with unexpected challenges and navigating the complexities of real-world business. Our skill in thinking quickly, inventing innovative answers, and adjusting to unexpected challenges is still a vital strength.

Plus in my personal opinion, humans should manage humans, for the same reason the AI failed. Humans are unpredictable and change their ways of seeing things all the time. My afraid is an AI on command makes decisions to achieve their goals that affect badly the employees.

If you share my level of interest in this topic, I highly recommend reading the entire article. It's an insightful read that offers a fair analysis of the potential future of AI in management during the AI era. It is available at Harvard Business Review.

Link: https://www.hbs.edu/faculty/Pages/item.aspx?num=66352