(qlmbusinessnews.com Fri. 5th July, 2024) London, UK —
“Can AI Bosses Outperform Human Managers? New Study Reveals Insights”
Hannu Rauma, based in Vancouver, Canada, found himself overwhelmed with the stress of managing 83 employees. As a senior manager at Student Marketing Agency, which employs university students to provide marketing support to small businesses, Rauma was bogged down by the constant issues among teams.
“Bringing new clients on board was dampened by the fear of failure,” he recalls.
However, since November, things have changed dramatically for Mr Rauma and his team. The company began utilising an autonomous AI manager, developed by US-based firm Inspira. This AI system assists employees working flexible, remote hours by scheduling their tasks, sending deadline reminders, and tracking time spent on various clients for accurate billing. It even offers suggestions to improve written content, answers work-related questions, and updates everyone’s progress in a central portal.
Mr Rauma says the AI manager has significantly reduced his stress and boosted employee productivity. “I can now focus on growing the company and enjoy more positive interactions with my team,” he notes. His relationship with employees has improved, shifting from a paternal dynamic to a more balanced, collegial one.
This AI manager is currently being trialled by Mr Rauma and 26 of his 83 employees as part of a study conducted by Inspira in collaboration with Columbia University, Arizona State University, and the University of Wisconsin. The study compared the performance of an AI manager with human managers across three groups: one managed by a human, another by the AI, and a third by both.
The AI manager achieved a 44% success rate in getting employees to plan their workdays in advance and a 42% success rate in motivating timely logins, comparable to the human manager’s 45% and 44%. However, the combination of AI and human management saw a 72% success rate in pre-planning workdays and a 46% on-time login rate.
Although the study is small and specific, its results suggest intriguing possibilities for integrating AI in management roles.
Despite the trend of companies like UPS and Dell announcing significant job cuts to be replaced by AI, Columbia University’s Professor Paul Thurman advises caution. He emphasises that middle management is critical for continuity, mentoring, and the human aspects of leadership that AI cannot replicate.
Thurman argues that AI can relieve managers from mundane tasks, allowing them to focus on innovative and strategic work. AI can identify underperformers needing closer management and highlight top performers requiring recognition. However, he warns against using AI for excessive surveillance.
Tina Rahman, founder of London-based HR consultancy HR Habitat, sees potential benefits in AI assisting “accidental managers” who lack natural management skills. AI can provide clear instructions and transparency, enhancing productivity. However, Rahman cautions that over-reliance on AI may give the impression that companies prioritise output over employee well-being.
James Bore, managing director of cybersecurity consultancy Bores, raises significant concerns about cybersecurity risks. He warns that placing company processes and intellectual property in AI systems makes them vulnerable to hacking and ransom. Over-reliance on AI could also make companies less resilient and more easily replaceable.
While AI offers promising benefits, businesses must balance efficiency with human elements and security considerations.
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