2020-07-08, Richter, Sarah-Louise, Resch, Dörte, Dornberger, Rolf

This study examines the effect of artificial intelligence (AI) on leadership in internationally operating insurance companies. Because insurance is a model example of a data-intensive industry, companies are already applying AI-powered technology and searching for opportunities for further use. However, any important step in automation may trigger a leadership shift and a research gap has been identified in the development of leadership positions in insurance companies confronted with the use of AI. Specifically, the objective is to investigate how leadership could change due to the introduction of AI as an example of digitalization. For this study within an interpretive paradigm, qualitative data were collected in 19 semi-structured interviews, with interviewees representing five insurance companies headquartered in Western Europe. The findings suggest that the use of AI and its implications for leadership are closely linked to the underlying structures of the industry, which has led to the existing leadership discourse and organizational metaphor in the first place. The implications of AI, in turn, depend on the leadership discourse and existing structures. Thus, if AI is used only in accordance with the current discourse, the implications for leadership are minimal. Therefore, it can be concluded that the use of AI-powered software itself is unlikely to trigger change in leadership. Nevertheless, AI holds significant potential for insurers. For example, AI could support the insurer’s core competencies, and connect companies with broader ecosystems and customer communities.