The Future of Management: GenAI for an evolution or a revolution?
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- The introduction of Generative AI has sparked growing interest around its integration into managerial practice and the potential evolution of these practices (Geleilate & Humberd, 2024). Generative Artificial Intelligence, compared to traditional Artificial Intelligence that has been used for data processing and automation, enables greater content generation, contextual reasoning, and humanlike interaction. This thesis aims at examining the integration of GenAI tools in managerial practices through two dimensions: theoretical and empirical research. Based on a structured review of traditional and modern management theories, the thesis has identified four core pillars of management: employee engagement, decision making, communication, and performance monitoring and feedback. These pillars serve as the guideline for evaluating the impact of GenAI integration within managerial functions. The empirical research is based on ten semi-structured interviews with public and private sector managers at different managerial levels and aims at understanding the perception and usage of GenAI within their daily managerial activities. The findings indicate that although GenAI improves efficiency and cognitive clarity, especially in communicative and decision-supporting functions, its influence is mostly enhancing rather than being transformative, which is consistent with previous studies focusing on the role of AI as an assistant to managers instead of replacing them (Raisch & Krakowski, 2021). Managers shape emotional and communicative framing by editing messages produced by GenAI but also by holding onto core human leadership traits such as emotional intelligence, judgment, and empathy. This is particularly noticeable with the under-usage of GenAI tools for engagement and feedback. This highlights the importance of emotional sensitivity and trust within management. Overall, based on gathered insights, this thesis suggests that Generative Artificial Intelligence is not a revolutionary phenomenon transforming management but rather an evolutionary tool that facilitates thinking, accelerates tasks, and encourages meaningful leadership. This perspective once again aligns with Raisch and Krakowski (2021) research describing GenAI as an augmentation tool that enhances, rather than replacing core managerial capabilities. It calls for a controlled adoption of GenAI, respecting both human traits and GenAI tools, suggesting that the future of management resides in enhancement and not replacement.