The Impact of Artificial Intelligence on Organizations and Managers: The Skills Needed for an Effective Leadership

The chapter explores the impact that the adoption of Artificial Intelli-gence (AI) has on organizations by exploring how managers have to adapt and to reshape their leadership style. First, we describe how AI is changing the way companies are managed by shedding light on the adoption process and on the main impacts. This mainly relates to organizational strategy, required skills, or-ganizational culture, and human–AI interaction. Later, we point out the main prac-tical applications of AI within organizations and how it can improve business pro-cesses. Finally, we explore the impact of AI on leadership, in order to understand how managers should change to effectively lead their organizations. In particular, we focus on the heterogeneous skills, factors and characteristics that managers need to make the most of the potentialities of AI.