Organisations in the Age of Algorithms


Article by Phanish Puranam: “When Google’s CEO Sundar Pichai recently revealed that 25 percent of the company’s software is now machine-generated, it underscored how quickly artificial intelligence is reshaping the workplace. 

What does this mean for how we organise and manage? Will there still be room for humans in tomorrow’s organisations? And what might their work conditions look like? I tackle these questions in my new book Re-Humanize: How to Build Human-Centric Organizations in the Age of Algorithms”. 

The answers are not a given. They will depend on what we choose to do – what kinds of organisations we design. I make the case that successful organisation designs will have to pursue both goal-centricity (i.e. achieving objectives) and human-centricity (i.e. creating social environments that people find attractive). A myopic focus on only one or the other will not bode well for us.

The dual purpose of organisations

Why focus on organisations at a time when technology seems to be making such exciting strides? This was the very first question that INSEAD alumna Joanna Gordon asked me in a recent digital@INSEAD webinar. 

My answer: Homo sapienss most impressive accomplishments, from building the pyramids to developing Covid-19 vaccines, are not individual achievements. They were possible only because many people worked together effectively. “How to organise groups to attain goals” is our oldest general-purpose technology (GPT!). 

But there is more. To humans, organisations don’t just help accomplish goals. We are a species that has evolved to survive and thrive in groups, and organisations (i.e. groups with goals) are the natural habitat of Homo sapiens. They provide us with a sense of community and, as research has shown, help us strike a balance between our needs for social connection, individual autonomy and feeling capable and effective…(More)”.