Navigating AI landscape in organisations: Change management 

AI transformation will impact the whole organisation and therefore it should be driven with the support of all stakeholders

AI has largely become a buzzword but do people understand what AI is and what its impact is? AI is basically about the simulation of human intelligence in machines programmed to think, learn, and solve problems like human beings. The most commonly used AI models in the workplace are generative AI models. Generative AI models are AI systems designed to create new content such as text, images, music, codes, and videos. This content is generated through patterns learned from training data and deep machine learning. 

The most popular applications of generative AI include chatbots and virtual assistants. Large language models (LLM) are advanced AI models that help to power chatbots. Other uses of LLMs include text summarisations, content generation, and code writing. AI transformation refers to the adoption of AI technologies by organisations or industries in their operations. This will involve revisiting business models, processes, and customer (including employee) experiences by using AI technologies to automate repetitive tasks, enhance decision-making, and improve the overall efficiency of the organisation. Some popular examples of AI transformation in organisations include self-driving cars by Tesla and Amazon’s Alexa. 

Tesla’s AI-driven cars use deep learning to process real data captured from cameras and sensors. These vehicles drive autonomously and learn from millions of miles of driving data. Through Tesla’s AI initiative, research has shown that the vehicle accident rate has drastically reduced in the United States. Amazon Alexa has become a household name across the world owing to its versatility and innovativeness. This smart voice assistant has transformed how users interact with different devices and perform tasks such as playing music and shopping, etc. with absolute convenience and ease.

Adoption of strategies by organisational leaders to make the transition to AI smoother and more acceptable 

Some of the key things an organisation can do are the fundamentals. These can be explained through 3 Cs: Communication, Collaboration and a Culture of Learning, and creating Change Champions. 

1st C: Communication: Employees need to understand the reasons for the implementation of AI. So, the management needs to formulate a vision first before embarking on any AI transformation. In addition to the vision, employees need to understand the benefits. They need to know “What is it for me?” “Is my job at stake? Will I lose it at the end of this project?” We can see the fear factor mostly because of the lack of communication from the management. 

Communication is vital and it needs to be seen throughout the process: at the start, while the project is on-going and till the end of the project. Regular meetings, updates and newsletters can help to beat misinformation. It will also help to build trust among employees. With AI intervention, there may be upskilling or reskilling of employees. Good communication can certainly address this area as well and resolve the doubts in the employees’ minds. Upskilling will help employees to learn new skills such as basic AI literacy which will enable employees to work effectively in an AI environment. With any change management initiative, resistance to change is something to be expected. The resistance to change can also be mitigated to a great extent if the organisation adopts healthy communication practices.

2nd C: Collaboration: AI transformation will impact the whole organisation and therefore it should be driven with the support of all stakeholders. It is not a project that the IT or the HR division has to battle alone. The management must obtain the collaboration of all divisions to make this project impactful and effective whilst avoiding a silo mindset. A culture of learning (starting with basic AI literacy to advanced knowledge of AI tools where necessary) hand in hand with healthy collaboration across all divisions will be invaluable in this journey. 

3rd C: Change Champions: Small victories need to be celebrated at every milestone of the project. This is important in any change management initiative that an organisation embarks on. Employees who embrace change early can be appointed as change champions to guide, assist, and support other employees to adapt. This measure will help the organisation to obtain the employees’ buy-in early. These champions will effectively be influencers for the project. In the instance where there is resistance from a certain group of employees, if one of them can be converted to a change champion, obtaining the support of this particular group will be smooth in the long run.

Information security 

in AI implementation 

AI implementation needs to be approached with caution due to security concerns. Some key security risks include tampering with training data, possible data leakage of sensitive data, unauthorised access of training data by third parties, and even theft of AI models. AI security can be enforced through encryption of data, implementation of access controls, regular audits of data sets for unauthorised modifications & by conducting penetration tests. 

Further implementation of ISO 27001 (Information Security Management System) in organisations will mitigate security risks and enforce AI data security. ISO 27001 provides the framework for organisations to safeguard sensitive information and build data security. The mindset that leaders need to inculcate to support the AI transformation: Leaders play a crucial role in any change management initiative, especially in the case of an AI transformation. 

Starting with setting up a vision, building communication channels, setting up a culture of collaboration, and laying the framework for AI security are some aspects that require consideration. Walking the talk by willingly adopting AI technologies and tools into work is advantageous as it would create visibility that AI is embraced from the top. Leaders must support a learning culture by bringing learning opportunities and openly encouraging upskilling of employees. By addressing these factors, leaders can ensure that the transformation is effective and collaborative.

(This writer participated as a panellist in the 33rd version of the World HRD Congress, which focused on HR and AI, from 17 to 19 February 2025, in Mumbai, India. This article was compiled from the ideas gathered and expressed by the writer regarding AI transformation in Companies at the World HRD Congress.)