When Algorithms Become Managers: New Study Examines AI's Role in Finnish Workplace Leadership

Artificial intelligence has moved from a secretary role to the decision maker's position in many fields. So-called algorithmic management is a familiar phenomenon in platform economics and logistics, for example, but now it is rapidly sweeping into expert and knowledge work as well. A research project recently launched at Haaga-Helia University of Applied Sciences maps the effects of algorithmic management in modern expert and knowledge work.

Mies ja robotti istuvat jonotuspenkillä.
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Haaga-Helia University of Applied Sciences has launched a research project titled "RoboBoss - AI in the Leadership of Knowledge Work and Expert Roles", which maps the effects of algorithmic management particularly in expert and knowledge work – an area that has traditionally been the playground of human leaders.

According to Dr Anna Lahtinen, Senior Researcher at Haaga-Helia University of Applied Sciences, artificial intelligence is moving from being a background tool to an increasingly active part of management processes. She believes that the critical transformation shaping working life is happening right now, not in the distant future.

"It's not just about efficiency, but also about fairness in working life. At the core of our research is the aim to determine how artificial intelligence can strengthen fair and efficient management, and to identify those critical situations where human presence, judgement and interaction skills remain irreplaceable", she summarises.

Algorithmic management means transferring management tasks partially or completely to automated systems. In practice, this means that in the future, you may not report your work to a human anymore, but to an algorithm. Your supervisor could be artificial intelligence that monitors your work performance, provides feedback, and even makes decisions on your behalf.

Where is the Line Between Machine and Human

The research project seeks answers to questions that concern many, such as what benefits and risks are associated with algorithmic management, and how can companies prepare for AI's leadership role? And in what situations can AI replace a supervisor's decision-making, and when is it not recommended?

"At the EU level, the regulation of algorithmic management has emerged as an important theme, and in the future, the rules related to it will be modified. In Finland, it is important to address this development proactively so that companies can openly, sustainably and fairly utilise the possibilities of artificial intelligence", Dr Lahtinen reflects.

During the research project, a nationwide survey, a Delphi future panel for supervisors, and company-specific research and development workshops will be carried out. These will provide a comprehensive picture of the impact of AI-based management on working life and what recommendations can be given to companies.

The results will be published through multiple channels as scientific articles, expert blogs, companies' AI stories, a book, and podcast and webinar series. In addition, practical recommendations will be drawn up for companies on what to do and what to avoid when AI takes on a role in decision-making.

Companies Involved in the Change

The RoboBoss project aims to combine research and practice so that the benefit would be as great as possible. In addition to the nationwide survey and the supervisors' future panel, company-specific workshops will be implemented in the project, where AI leadership will be tested in practice.

The project involves an impressive group of Finnish pioneering organisations, such as Abloy, Foibekartano, Jensen Hughes, Kesko, Sympa, Vetcare, AI Think Group, Atea, HENRY, the Union of Professional Engineers in Finland, Keuke, NestorPartners, Posintra, SEKES, Sofigate, Finnish Business Mentors, Western Uusimaa Chamber of Commerce, Healthtech Finland, TIEKE, Professionals of Business and Technology, Finnish Institute of Occupational Health, the Entrepreneurs of Uusimaa, and the cities of Espoo and Vantaa.

The research is funded by the Finnish Work Environment Fund, Haaga-Helia University of Applied Sciences, Abloy, Foibekartano, Jensen Hughes, Kesko, Sympa and Vetcare. More information about the project can be found on our project page: https://www.haaga-helia.fi/en/rdi-projects/roboboss-ai-leadership-knowledge-work-and-expert-roles