Shine bright like a diamond: How Gen AI could transform leadership and strategy

Though in its early stages of integration, generative AI is reshaping the future of work, with leaders at the forefront of this transformation. As organizations accelerate adoption, it promises to redefine responsibilities, enhance decision-making by acting as a “thought partner”, and overhaul organizational structures. Our latest research, Gen AI at Work: Shaping the Future of Organizations, maps out what this evolving landscape could look like for leadership.

What’s everyone saying?

• Much of the discussion on Gen AI’s transformative potential focuses on its effect on various industries – with The New York Times for instance, predicting that banking, in particular, will experience the most disruption. Some emphasize the skills workers will need to harness Gen AI effectively, from learning to question it intelligently to training LLMs. Others take a functional approach, looking at which tasks are more likely to be automated.
• Yet little attention has been given to how the very nature of roles may evolve, particularly at the leadership level. While Gen AI’s influence on entry-level roles is well-recognized, the transformation at the executive level is equally (if not more) significant, with Gen AI likely to deeply enhance strategic decision-making and leadership.

What do we have to say?

• In our recent report on Gen AI at work, we explain why and how it is likely to reshape roles across the organization and possibly even transform organizational structures altogether.
• Firstly, Gen AI may well redefine roles for entry-level employees and boost their career advancement. 71% of respondents in our survey expect entry-level jobs may move from creation to reviewing Gen AI outputs within the next three years. Gen AI could also accelerate career advancement for these employees, with 51% of leaders and managers anticipating many of these roles evolving into frontline managerial roles within the same time period.
• As organizations increasingly integrate Gen AI, managerial roles may become more strategic, focusing on decision-making and innovation. Rather than dedicating a significant part of their time (currently one-third) to operational or administrative tasks, managers may leverage Gen AI to focus more on strategic decision-making, team leadership, and driving innovation through advanced data insights. In fact, Gen AI can be used not only as a "co-pilot" for operational tasks, but also as a "co-thinker" for complex activities and strategic business decisions.

• As AI evolves from a tool to a team member, managers will soon lead hybrid human-AI teams. Leaders will play a key role in this shift, using emotional intelligence to manage effectively. Our report reveals that one in three teams already use AI to enhance performance, while AI agents are automating tasks in areas like customer service. Additionally, 13% of teams expect AI to become a full-fledged supervisor within the next year, up from 1% today. In response, 52% of leaders foresee focusing more on tasks requiring emotional intelligence.
• Leadership roles could also evolve, with a greater focus on ensuring responsible and ethical use of Gen AI – an essential factor for business success. Indeed, Gen AI adoption requires a strong risk management approach to mitigate potential concerns around IP/copyright, security, bias, or accountability. Leadership’s role could prove critical in establishing robust frameworks and guardrails that help ensure the Gen AI systems built and used are responsible and ethical.
• All in all, Gen AI may reengineer organizational structures entirely, leading to new, more agile models. Our experts suggest two models, in particular, are likely to emerge: the hourglass model (a small leadership team, a lean mid-management layer, and a broad base of highly-skilled, Gen AI-augmented entry-level workers) and the diamond model (fewer entry-level roles, with many shifting to mid-level, a “broader” mid-level layer, and critical top leadership). While there is no clear consensus among experts on which model might prevail, the leaders and managers we surveyed lean toward the diamond model. In either case, C-level executives are set to play a crucial role, driving the transformation towards these models and leveraging the strategic advantages of Gen AI.
• Yet the adoption of Gen AI remains in its early stages. Though 97% of leaders and managers report having experimented with these tools, only 15% use them daily at work. Proficiency in key Gen AI-related skills is also limited, as evidenced by the figures below.

• Low confidence in Gen AI tools, compounded by a lack of clear guidelines regarding usage and the complexity of integrating Gen AI into existing workflows, adds to these obstacles. Fortunately, C-level executives can overcome these nascent adoption challenges through strategic initiatives and investment in skills and technology.

Who’s doing it right?

• A leading US bank partnered with Capgemini to develop an AI-powered platform using Naehas and Adobe, streamlining personalized offer management. The system reduced offer creation time by 60-70%, multiplied personalization by three, and saved $1.35M annually in operations and IT costs. Find out more here.

What’s the bottom line?

• To build a truly Gen AI-augmented workforce, organizations must act on several fronts at once.
• Focus on designing new organizational structures and optimizing workflows for human-AI collaboration. This will entail rethinking workforce planning, roles, and career paths for the evolving organizational structures, and adapting practices, processes, and operating models for hybrid human-AI teams.
• Make sure all members of the organization are equipped with the tech needed to evolve into an augmented force. This means providing access to Gen AI tools in a well-governed environment and better integrating business applications with Gen AI. It also means focusing on robust data foundations to fully harness the potential of Gen AI, and hybridizing Gen AI with trusted systems.
• Prioritize skills development and behavioral transformation across the organization. This implies empowering people to use and trust Gen AI through skills development, encouraging the adoption of Gen AI by transforming behaviors and highlighting the role of Gen AI in augmenting and empowering human intelligence.

Looking for more?

• GlasfaserPlus GmbH , a joint venture of Deutsche Telekom and IFM Global Infrastructure Fund, partnered with Capgemini to develop a Gen AI solution that uses a large language model to improve the analysis of construction delays in the rollout of fiber-optic networks. The result? GlasfaserPlus employees now have access to easy-to-read data that allows them to quickly predict delays to fiber optic expansion projects. Benefits include optimized workforce allocation, reduced costs and increased speed, more proactive communication with all stakeholders, and an overall improved customer experience. Learn more here.
• Interested in learning how to turn Gen AI into your “co-thinker”? Authored by Capgemini experts, the HBR Guide to Generative AI for Managers may be exactly what you need. Find out more and pre-order here.

• In the latest issue of our “Conversations for Tomorrow”, academics, AI scientists and entrepreneurs, experts, and senior executives from key companies explore how Gen AI is reimagining roles, and how to harness it both responsibly and sustainably.

And you, what are you saying?

How is Gen AI reshaping roles and structures in your organization? Are you already using it to streamline tasks, foster innovation, and transform your team dynamics? Or are you just beginning to explore? Share your insights and experiences in the comment section below – we’d love to hear from you!