Managing People and Organisation

This paper evaluates the use of artificial intelligence in modern organisations and the way artificial intelligence has been integrated into organizational intelligence. It discusses the criticisms Australian regulators have been receiving for incompetence in preventing banks from exploiting consumers and the increasing expenditure on AI technologies. It also explores the impact of AI on leadership, training, and organizational processes, as well as the importance of cultivating a culture of AI in organizations.

Running head: MANAGING PEOPLE AND ORGANISATION
MANAGING PEOPLE AND ORGANISATION
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Introduction
Organizational intelligence is referred to the competence of an organisation to create
knowledge and utilize it in order to strategically adapt to its environment. Such intelligence
similarity to an individual IQ but has been generalized as an organizational level. Smith (2019)
in the news article published in Financial times have stated mentioned that Australian regulators
are inclining towards the use of artificial intelligence in order to boost compliance across the
finance industry. Human intelligence of several employees is primarily combined with the
artificial intelligence of machines contained in intelligent buildings and further allocated through
intelligent cyberspace (Charlesworth, 2014). The following paper will evaluate the use of
artificial intelligence in modern organisations and the way artificial intelligence has been
integrated into organizational intelligence.
Discussion
The Financial Times news article has shed light on the severe criticisms Australian
regulators have been receiving for showing incompetence in preventing banks from exploiting its
consumers. Report of Smith (2019) has revealed that international expenditure on cognitive as
well as AI technologies has amplified to around $25bn since past year and up approximately
45% from 2017. However, it has been further projected that 2019 will witness banks to spend
around $5.6bn which is next to the expense generated by the retail sector.
Drawing relevance to this news article, reports of Jakšič and Marinč (2019) have revealed
that distributed artificial intelligence primarily refers to the area of study and design of systems
forms of several interacting items, logically as well as specially distributed which can be

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considered in certain sense to be autonomous and intelligent for the organisation. Extensive
access to artificial intelligence technologies in modern organisations has accelerated digital
transformation. Such transformation has been considered to be a journey which will stimulate
employee processes mechanisms and leadership with advanced technological services.
According to Smith (2019) artificial intelligence technologies tend to permeate more
organisations along with greater number of parts within organisations whereby the basics of
leadership required to be re-evaluated starting from the general strategy to consumer experience
to the most competent way to set up technology and human capital . Furthermore, Smith (2019)
in the news article has mentioned that one of Asic’s pilot programmes engages efficiently
implementing advanced software in order to scrutinise financial planning documents, online
sponsorship and advertisements to guarantee that these organizations do not support
problematical suggestion or violate regulations.
According to Licato and Zhang (2017) business leaders engaged to modern organisations
not only need to evolve rapidly in this new as well as dynamic business setting but further
necessitate ability to support change throughout the organisation. This significant change is
essentially needed in order to bridge the gap between conventional and newly developed
business and work realities (Charlesworth, 2014). Smith (2019) in the news article has given
similar opinion and mentioned a separate examination which will use AI to scrutinize and screen
discussion between insurance sales agents as well as consumers to categorize possible “hard-
sell” strategy or failures to obey with disclosure rules.

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Reports of Goeke et al. (2016) have stated that over three-fourth of its decision makers
have developed the understanding that the executive team in the organisation would eventually
benefit from formal training on the implications of AI technologies. For example, in the United
States and India the rate of formal training have been around 85% and 92% respectively
(Lombardi, 2019). Furthermore, Smith (2019) in the news article published in Financial Times
have clearly stated the way international supervisors, managers as well as governments are
already progressing towards strategically including algorithms to do work formerly completed by
humans. However, in the UK, the National Health Service has associated with DeepMind, an AI
corporation owned by Google in order to expand algorithms competent of detecting breast cancer
from mammograms.
Furthermore C-level executives tend to demand training the leadership team on artificial
intelligence as the primary precedence whereby over 45% of business managers have cited the
leadership training in the top three priorities in comparison to 40% who have cited employee
training in the top three priorities (Brynjolfsson & Mcafee, Andrew, 2017). On the other hand
findings of Smith (2019) have revealed that the constructive impact of artificial intelligence
within the organisation has drawn significant level of efficiencies. Furthermore, it has been noted
that around 72% of C-level executives have accepted AI technologies to have significant impact
on their organisations this impact however have been stated to be more substantial in comparison
to the impact AI technologies will put on organizational processes (Licato & Zhang, 2017).
At this point in discussion Smith (2019) has noted that in Australia, managers are of the
opinion that AI can help undertake problems recognized by the recent investigation into
delinquency in the financial business, which faulted regulators for shortage of providing
enforcement. Furthermore as per reports of Smith (2019), the commission established

4MANAGING PEOPLE AND ORGANISATION
that financial institutions asked for costs for no service while in some cases from customers who
have already expired by cost customers hundreds of millions of dollars through poor suggestion.
According to Brynjolfsson, Mcafee and Andrew (2017) across all industrial sectors
organisations have shown the inclination of employee talent with artificial intelligence skills and
competencies is highly essential. However recruiting artificial intelligence talent alone will be
highly insufficient whereby the skills will be in high stipulation and therefore have the tendency
to fall short and be costly. Artificial intelligence tends to increase in scale and for the stimulates
significant changes modern business is which have adapted training and re-skilling current
employee base will realize the value of the tangible benefits it will bring (Goeke et al., 2016) At
this juncture Smith (2019) has emphasized on the importance of training and knowledge
development of employees in order to cultivate a culture of artificial intelligence and its positive
implication in the organizational performance. Organisations misunderstand the importance of
artificial intelligence and its competence in generating continuous development as the
Technologies will improve as well as evolve eventually (Gupta & Kumari, 2017).
Furthermore, organisations which are highly competitive and successful have been
recognised as the ones which have proficiently adopted a culture of constant learning and
knowledge progress and further to facilitate prospective avenues for employees in order to
continuously develop new skills and talent (Jakšič & Marinč, 2019). As a result, establishing
such a culture within the organisation will be initiated from the top hierarchy level. Consequently
according to Smith and Green (2018) business leaders will tend to evolve their skills and further
obtain an in-depth understanding of the technologies which have been driving their business
forward. Moreover, at the societal level, the next generation will need to be highly resilient and
adaptable to significant changes and show greater degree of intelligence to obtain new insights in

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order to ensure that they maintain relevance and provide significant value as Artificial
Technologies develop (Jakšič & Marinč, 2019). Smith and Green (2018) have noted that the top‐
down approach focuses on programming ethical standards into the AI machine which
necessitates programmers to comprehend ethical practices. Programmer training should offer
comprehensive insights which relates to ethical standards to the AI machine.
Conclusion
Hence to conclude, organisations with comprehensive AI strategies will constitute AI
initiatives. Moreover, in the initial stages of technology adoption, it is evident to emphasize on
automating current business processes as it typically provides highly efficient outcomes.
Furthermore in the era of ongoing digital transformation and advancement artificial intelligence
initiatives have been regarded as a significant avenue to reinvent every aspect of the business for
attaining a competitive advantages position in the market.

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References
Brynjolfsson, E., & Mcafee, A. N. D. R. E. W. (2017). The business of artificial
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Charlesworth, A. (2014). The comprehensibility theorem and the foundations of artificial
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Goeke, R. J., Faley, R. H., Brandyberry, A. A., & Dow, K. E. (2016). How experience and
expertise affect the use of a complex technology. Information Resources Management
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Gupta, R. K., & Kumari, R. (2017). Artificial Intelligence in Public Health: Opportunities and
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Jakšič, M., & Marinč, M. (2019). Relationship banking and information technology: the role of
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Licato, J., & Zhang, Z. (2017). Evaluating representational systems in artificial
intelligence. Artificial Intelligence Review, 1-31.
Lombardi, R. (2019). Knowledge transfer and organizational performance and business process:
past, present and future researches. Business Process Management Journal, 25(1), 2-9.
Smith, A. M., & Green, M. (2018). Artificial Intelligence and the Role of Leadership. Journal of
Leadership Studies, 12(3), 85-87.

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Smyth, J. (2019). Australian regulators cautiously embrace AI to boost compliance | Financial
Times. Retrieved from https://www.ft.com/content/33eb5934-4519-11e9-b168-
96a37d002cd3