Artificial Intelligence and the Future of Leadership: Navigating Challenges and Opportunities in Enterprises

Abstract Artificial intelligence (AI) technology has grown exponentially in the last few years, which gives way not only to a whole new range of opportunities but also to unprecedented problems for leaders in the public and private sectors alike. AI is reshaping infrastructure functions, decision making and competition. Therefore, new skills are required in order to create new strategies. The present research analyses how AI has impacted leadership, namely strategic direction, ethics and the urgency for change, as well as how AI has redefined major modern-day leadership responsibilities, as resilience, literacy and ethical leadership. The obtained results outline the fact that the use of AI in order to improve efficiency or to promote innovation is closely connected to the necessity of rethinking leadership altogether and of implementing effective policies. This study also deals with the consequences AI has on leadership within an organization and offers guidelines for business leaders, academic experts and decision makers in order to understand the challenges and changes occurring nowadays due to AI.