Calls for strong management as technology evolves

Companies need to welcome strong leadership to survive the technological revolution, according to roundtable discussions at Nyenrode Business Universiteit.

Many firms could be facing mass dismissal as technology becomes more capable and only those with responsible and strong managerial skills will be able to handle the transitions effectively. 24 managers of prominent Dutch businesses, as well as an equal number of university students were present to tackle the challenges the industry will face in the digital age. With artificial intelligence expected to perform simple tasks and smaller roles currently undertaken by employees, experts believe huge numbers of people could be out of the job by more efficient and cost-effective machines.

Specialists expect half of professional jobs to be affected by the rise of AI by 2025, creating major problems for managers as well as potentially damaging the economy. Although more jobs will be created through the implementation of workplace technology, the Nyenrode Business University is not convinced it will keep people in employment.

“It is likely that the new jobs that these technologies create will be high-skilled and too few in number,” explained Bob de Wit, professor of strategic leadership at the university, who raised concerns on how the current economic system will cope with mass unemployment. “spending will stop, taxes will plummet and the economy will suffer.

“Although every business wants to keep up with the digital revolution, cutting corners ethically could result in far worse consequences for us all.”

As tech advancements are becoming faster and faster, companies are struggling to keep up, and eventually tough decisions will need to be made. The university is urging employers to train up and prepare their managerial teams now to ensure they understand the changing world.

“The next generation of managers need to prioritise ethical, social and environmental responsibility when making big decisions, perhaps even putting these above profit,” concluded professor de Wit. “The power tech affords us is immense, but if misused, the consequences could be irreversible.”