As advanced generative AI (GenAI) tools are increasingly integrated into business operations, they will fundamentally alter who has power within organizations â and why. By strategically using these tools, early adopters at all levels can amplify their expertise, access critical information, and influence decision-making processes in unprecedented ways.
This article explores how AI proficiency can amplify various sources of individual power in organizations, from structural and expert power to informational, referent, and network power. It highlights a potential AI âpower amplifierâ effect where AI skills create synergistic relationships between different power sources, each reinforcing and amplifying the others. Understanding this effect is crucial both for individuals seeking to advance their careers and leaders aiming to harness the full potential of their workforce.
Before we explore how AI is augmenting individual power sources, let’s start by understanding the sources of power that exist in organizations, as summarized in the table below.
| Type of power | Description | Example |
| Legitimate power | Derived from oneâs formal position or role within the organizational hierarchy. | A manager who assigns tasks to team members. |
| Structural power | Flows from oneâs position in the organizational network and control over critical workflows. | A project manager who controls key processes in a project. |
| Expert power | Based on an individual’s specialized knowledge, skills, or expertise. | An IT specialist solving complex technical issues. |
| Informational power | Arises from access to and control over valuable information. | An analyst who controls the companyâs financial reports. |
| Network power | Results from an individual’s connections and ability to facilitate information flow and collaboration across the organization. | A well-connected employee who can quickly mobilize resources and support for initiatives. |
| Referent power | Stems from personal characteristics such as charisma or admiration from others. | A well-liked leader who inspires and motivates others. |
| Reward power | Comes from the ability to provide or withhold incentives. | A supervisor who grants bonuses or promotions. |
| Coercive power | Flows from the capacity to punish or impose sanctions. | A boss who can enforce disciplinary actions. |
Emmaâs AI-driven insights allowed her to connect previously siloed departments, significantly boosting her network power within the organization.
Sophisticated use of AI can potentially augment all these sources of individual power. To illustrate this, consider the case of Emma, a data analyst in a mid-sized retail company. Before GenAI, Emma’s power was based on her ability to analyze sales data and generate reports, limiting her impact on her department.
However, when her company adopted a GenAI tool for predictive analytics, Emma saw an opportunity. She dedicated herself to mastering the AI system, learning to use it to forecast sales and identify customer behavior trends in real-time. Within months, Emma’s power has increased dramatically. Her expertise made her the go-to person for integrating AI-driven insights into business strategy, significantly enhancing her expert power.
The AI system also gave Emma access to a wealth of real-time data, boosting her informational power and ability to influence decision-making. As she began leading cross-departmental projects, Emma’s control over AI-driven processes positioned her at the nexus of critical workflows, increasing her structural power. Colleagues admired her innovative approach, enhancing her referent power. Moreover, Emma’s AI-driven insights allowed her to connect previously siloed departments, significantly boosting her network power within the organization.
Emma’s story illustrates how GenAI can amplify various dimensions of organizational power:
1. Legitimate power: While GenAI skills do not directly increase formal authority, they can lead to promotions or expanded roles as these tools become integral to operations.
2. Structural power: AI proficiency can dramatically alter organizational workflows, allowing skilled individuals to position themselves at critical junctures within these new AI-driven structures, thereby increasing their structural power.
3. Expert power: GenAI expertise represents cutting-edge knowledge with broad applications, making individuals indispensable and amplifying their influence across the organization.
4. Informational power: AI excels at processing and generating vast amounts of information. Skilled users can harness these tools to access, analyze, and distribute valuable insights, significantly enhancing their control over information flows.
5. Network power: AI tools can help individuals identify and leverage key connections across the organization, facilitating collaboration and the flow of information, thus enhancing their network power.
6. Referent power: AI proficiency can establish individuals as thought leaders or innovators, increasing their admiration and respect from colleagues.
7. Reward power: AI proficiency may grant increased access to resources and the ability to provide AI-driven insights, enhancing one’s capacity to influence reward distribution.
8. Coercive power: While GenAI is less directly associated with coercive power, those who control critical AI systems could potentially use their influence to impose restrictions or enforce compliance within the organization.
For those who can harness its potential, AI becomes a tool for augmenting traditional sources of power.
Proficiency in GenAI has the potential to significantly enhance multiple sources of an individual’s organizational power. However, AI’s impact on power dynamics isn’t merely additive â it creates what we term the AI power amplifier effect. This effect occurs when an individual’s proficiency in GenAI creates synergistic relationships between different power sources, each reinforcing and amplifying the others.
Take the case of Jake, a junior marketing associate at a tech startup. Initially responsible for basic tasks like drafting social media posts and assisting with campaign management, Jake’s role offered limited opportunities for influence. Most strategic decisions were made by senior team members. However, when the company adopted an AI tool to automate content creation and enhance customer segmentation, Jake saw a chance to stand out. He took the initiative to learn the AI tool in-depth, becoming proficient in using it to generate highly personalized marketing content and predictive analytics for customer behavior.
Within a few months, Jake’s ability to harness the AI tool for creating targeted marketing strategies quickly made him a crucial asset to the marketing team, far beyond his initial role. With the AI tool’s advanced analytics, Jake could provide data-driven insights that senior marketers had not previously considered, increasing his influence in strategic discussions.
As Jake began collaborating directly with the product and sales teams to align marketing strategies with broader company goals, his role expanded, giving him more control over cross-functional projects. His innovative approach and technical skills earned him recognition from peers and leaders, elevating his status within the company. Furthermore, Jake’s AI-driven insights allowed him to identify key stakeholders and decision-makers across departments, significantly enhancing his network power and ability to influence company-wide initiatives.
Jakeâs story illustrates how GenAI could amplify various dimensions of power, even for individuals at relatively low levels of the organization, transforming them into key influencers within their companies.
Early mastery of AI could lead to broader professional networks and reputation, which could compound over time, significantly enhancing their network power.
It is possible that as AI skills become more widespread, their impact on power will normalize. This may be how things evolve. However, it’s also possible that early âpower usersâ of GenAI could maintain or even increase their power over time.
This could occur as the result of several mechanisms. Early adopters might have more time to deepen their expertise, potentially staying ahead of later adopters. They may solidify their positions of power before others catch up. They could play crucial roles in shaping how the organization implements and uses AI, further entrenching their power. Additionally, early mastery of AI could lead to broader professional networks and reputation, which could compound over time, significantly enhancing their network power within and beyond the organization.
Consider Alice, an HR specialist at a non-profit organization. When her organization implemented a GenAI tool to improve employee engagement and optimize training schedules, Alice was among the first to volunteer for training. She quickly became adept at using AI to analyze employee feedback and identify patterns that were not immediately obvious through traditional methods. Over time, Alice’s AI proficiency enabled her to redesign training programs based on AI-driven insights, making her an indispensable part of the HR team.
Her control over the AI-generated data gave Alice unique insights into employee satisfaction and productivity, which she used to influence organizational policies. As the go-to expert for the AI tool, Alice began working closely with senior management, positioning herself as a central figure in shaping the organization’s HR strategy. Her ability to leverage AI for significant improvements in employee engagement earned her respect and admiration across the organization, enhancing her referent power.
Alice’s AI-driven approach also allowed her to identify and connect key stakeholders across different departments, dramatically increasing her network power and ability to drive organizational change. By being an early adopter, Alice expanded her role and solidified her power within the organization, demonstrating the lasting impact of early AI mastery.
Several trends are likely to shape the ongoing impact of AI on individual power dynamics in organizations. The democratization of AI tools may decrease the power advantage of technical experts, but the strategic application of AI is likely to remain a differentiator. We may see the emergence of AI specialties, with power accruing for those who can apply AI to specific domains like marketing, finance, or operations. As AI use becomes more regulated, AI governance and ethics expertise may also become a new power source. The ability to effectively collaborate with AI systems may even become a crucial skill, creating new power dynamics between those who excel at this and those who don’t.
Regardless, the rapid evolution of AI will require continuous learning, and those who can adapt quickly will maintain their power advantage. Additionally, as AI enhances our ability to map and understand organizational networks, those leveraging this understanding to build and maintain influential connections may see a significant boost in their network power.
The integration of GenAI into organizations represents more than just a technological shift, it’s transforming how power operates at the individual level. For leaders, this presents both challenges and opportunities. While this new power does come with new responsibilities, those who can understand and navigate these new power dynamics will be best positioned to lead their organizations into the AI-powered future. They will be able to harness the amplifying effect of AI on various power sources, including network power, creating more dynamic, innovative, and interconnected organizations.
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