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While AI Can Offer Solutions, Leadership Judgment Is Still Essential

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JEREMY MAGGS: Artificial intelligence (AI) is transforming not only how businesses function, but also what is expected of their leaders. As AI and automation increasingly handle technical tasks, business schools are re-evaluating whether the traditional MBA (Master of Business Administration) curriculum effectively prepares executives for the modern landscape.

According to Gibs, the Gordon Institute of Business Science, the contemporary MBA should focus more on judgment, ethics, adaptability, and decision-making in complex situations, alongside technological fluency.

In this conversation, I’m joined by Professor Manoj Chiba, MBA director at Gibs. Manoj, welcome. What’s the core argument? Is AI rendering the traditional MBA obsolete?

MANOJ CHIBA: Thank you, Jeremy. This is a compelling question that’s being discussed at various levels: local, regional, continental, and global. The straightforward answer is no.

When we discuss the MBA, we examine emerging technologies and envision the future world. Technology has always been foundational to this discussion. What’s changed is the nature of work.

When I mention “shape,” Jeremy, I refer to the types of work senior managers and future businesses need to focus on. What will the future of nations resemble in an AI-automated environment?

The reality is that we have much to navigate still.

A crucial aspect is understanding how we need to adapt. We must ask ourselves: how do we establish guidelines around these changes? What do the job landscape and business models look like in this new context?

Even before AI, technology has always been a key component at Gibs. All our MBA courses have integrated technology into their foundations.

We recognized early on that a CIO (chief information officer) exiting our MBA program needed a profound understanding of technology’s role in business and what it means to lead in a tech-driven world. This understanding has evolved over the past decade.

I’m a big advocate for AI, Jeremy. Let’s get that clear. However, will it replace human beings? Unfortunately, the answer is no.

Why is that unfortunate? There’s a prevalent narrative around this. How do we oversee this technology, Jeremy? A few years ago, during election discussions, I was asked about governing technology. My response was that we can’t govern the technology itself; we must govern the creators of that technology. This raises ethical considerations.

The reality is we will always lag behind in regulation. Consider South Africa’s own AI policy, generated by AI itself.

We must discern what AI can and cannot achieve. The key takeaway for me, Jeremy, is straightforward: how do we ensure the future roles and organizations are pertinent?

That’s our mission. We are preparing leaders to grasp this, not in a technical sense; technology will evolve.

We aim to educate on governing what we don’t fully comprehend yet—a reality that few truly grasp, Jeremy.

JEREMY MAGGS: You mentioned ‘governance’ and ‘judgment,’ which clearly become more crucial as technology advances. My question is, can judgment actually be taught in a classroom?

MANOJ CHIBA: Absolutely, I believe it can. When you review AI-generated outputs, they can appear incredibly polished and knowledgeable.

However, the critical thinking and problem-solving skills—specifically the ability to discern quality information—are vital. AI outputs may sound impressive, but fundamentally, they’re often lacking substance.

We must be cautious; AI can deceive many, and we need to cultivate the skill to recognize whether something has been AI-generated.

Let’s be clear: at Gibs, we choose to collaborate with technology rather than oppose it.

In all our programs, based on the module’s nature, we prioritize core human skills. How do you lead effectively? When utilizing AI, how do you do so ethically? What are the boundaries? Naturally, as technology advances, we’ll adapt our approach.

Often, we neglect to acknowledge that in 2022, post-ChatGPT’s launch, the dean contacted me for guidance.

I told him that the pivotal course of action was to embrace it, or else it would fade into obscurity.

In January 2023, we developed a policy that we regularly update regarding AI usage. We need clarity on how to utilize it.

Let me pose an important question, Jeremy: what is the value of AI? Its utility lies in enhancing productivity and efficiency. While that’s beneficial, it isn’t the ultimate measure of value.

The true value lies in what you do with the extra time you’ve saved thanks to your AI assistant. How do you utilize that additional time?

This is what we are unlocking: understanding what additional time allows you to do as a knowledge worker and as an executive leader, and how to guide your team through it.

We mustn’t overlook that AI literacy must become as fundamental as digital literacy.

We often mistakenly view it as an endpoint. This is an ongoing journey with no conclusion. Thus, embedding resilience into our individuals from a technological standpoint is essential. Embracing it is critical if we intend to keep pace with global developments.

From my perspective, having traveled recently to Southeast Asia, the Middle East, and Europe, I’ve observed that South African executives appear to be significantly behind the curve, I would estimate about 100 meters.

This is an honest observation, and I find it intriguing.

JEREMY MAGGS: Given South Africa’s uniquely volatile business landscape, do you believe this is an advantage in nurturing leaders, rather than an obstacle to business?

MANOJ CHIBA: Show me an area of stability in the world today, Jeremy.

JEREMY MAGGS: Good point.

MANOJ CHIBA: That’s the truth. My work in the Middle East highlights ongoing turbulence, which doesn’t show signs of stopping. Hence, I view this volatility as an advantage.

How do you manage volatility? I’ve given this a lot of thought this year. We frequently discuss living in a VUCA (volatility, uncertainty, complexity, ambiguity) world, and as South Africans, we’re accustomed to it.

This reminds me of the load shedding days—remember those, Jeremy? When faced with load shedding, we know how to adapt. We’ve cultivated inherent resilience.

I’m not claiming this is ideal; let’s clarify. But it’s true we have an inherent resilience that enables us to thrive in hyper-complex and uncertain environments.

Will the world stabilize? There may be some semblance of stability, but I believe turmoil will persist—whether due to war or technological disruptions.

Thus, as Africans, I genuinely think we possess a significant advantage.

It may not align with the conventional thesis of business operation, but if you place a leader from Africa in another volatile region, they inherently know how to navigate that unpredictability. It’s in our DNA; to use Rassie [Erasmus]’s term, it’s part of who we are.

JEREMY MAGGS: And that’s where I’ll conclude this discussion. It’s been a fascinating conversation. Professor Manoj Chiba, MBA director at the Gordon Institute of Business Science.

Brought to you by the Gordon Institute of Business Science (Gibs).

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