Pega's CTO warns leaders not to confuse managing AI with managing people. AI is software that is configured, coded, and tested. People require inspiration, development, and leadership. Treating AI like a human team member is a fundamental error that leads to poor management of both technology and people.
Related Insights
AI is a 'hands-on revolution,' not a technological shift like the cloud that can be delegated to an IT department. To lead effectively, executives (including non-technical ones) must personally use AI tools. This direct experience is essential for understanding AI's potential and guiding teams through transformation.
Product leaders must personally engage with AI development. Direct experience reveals unique, non-human failure modes. Unlike a human developer who learns from mistakes, an AI can cheerfully and repeatedly make the same error—a critical insight for managing AI projects and team workflow.
The primary focus for leaders should be fostering a culture of safe, ethical, and collaborative AI use. This involves mandatory training and creating shared learning spaces, like Slack channels for prompt sharing, rather than just focusing on tool procurement.
Treat advanced AI systems not as software with binary outcomes, but as a new employee with a unique persona. They can offer diverse, non-obvious insights and a different "chain of thought," sometimes finding issues even human experts miss and providing complementary perspectives.
Marketers trained as perfectionists must abandon micromanaging every interaction in an AI-driven world. True leadership means letting go of the illusion of control to gain the reality of scale. The new role is to govern the system by defining ethical boundaries, tone, and data rules—managing the game, not the player.
To effectively leverage AI, treat it as a new team member. Take its suggestions seriously and give it the best opportunity to contribute. However, just like with a human colleague, you must apply a critical filter, question its output, and ultimately remain accountable for the final result.
Don't view AI tools as just software; treat them like junior team members. Apply management principles: 'hire' the right model for the job (People), define how it should work through structured prompts (Process), and give it a clear, narrow goal (Purpose). This mental model maximizes their effectiveness.
Leaders often misjudge their teams' enthusiasm for AI. The reality is that skepticism and resistance are more common than excitement. This requires framing AI adoption as a human-centric change management challenge, focusing on winning over doubters rather than simply deploying new technology.
The skills of setting clear goals, understanding resource (model) strengths, and defining processes are the same for managing people and AI agents. Being a great manager makes you a great AI user, as both require clarifying outcomes and marshalling resources to achieve them.
GSB professors warn that professionals who merely use AI as a black box—passing queries and returning outputs—risk minimizing their own role. To remain valuable, leaders must understand the underlying models and assumptions to properly evaluate AI-generated solutions and maintain control of the decision-making process.
