In this Amplify Update, we first examine the principles of ESG/DEI and how each benefits the organization. Next, we explore obstacles companies face when embracing these initiatives and provide a holistic approach to overcoming challenges and mitigating backlash. By overcoming these issues and effectively integrating ESG and DEI principles into corporate responsibility strategies, companies can create long-term value for stakeholders while advancing their broader mission of responsible corporate citizenship.

With careful design and effective oversight, large language models (LLMs) can be an ally rather than a liability in securing organizations against modern technological threats. This Advisor looks at specific ways responsible LLM adoption can improve security.

Building a high-performance team takes significant effort, and it doesn't occur until all members of the team are working together like a well-oiled machine. In this Advisor, we explore a key ingredient of high-performance teams: leaders who display social intelligence when leading and putting the team together.

In this Advisor, we explore a key trend uncovered by ADL’s 2024 CEO Insights study: AI use, particularly for efficiency and effectiveness, is on the rise; however, many leaders are still on a transformation path to fully understand its impact and integrate it across their organizations.

In this Advisor, Myles Suer offers nine pieces of advice gleaned from a forthcoming book on AI-savvy leadership. Effective leaders can use this advice to propel AI in their organizations and gain real business value.

Pamela McCloskey and Byron Graham explain “why” and “how” organizations in the banking industry are developing and using big data analytics capabilities (BDAC) to derive business value. Their article highlights the importance of a socio-technical approach to analytics: technical resources (e.g., data, technical infrastructure, software tools) and human capital with the skills to use these resources combined with the right social elements to nurture a data-driven culture that ensures the correct use of data for insight and decision-making. McCloskey and Graham present examples of how organizations have drawn on BDACs to successfully respond to recent shocks in the external environment, including the pandemic and regulatory changes in the financial services industry. The authors’ proposed framework for assessing and developing the resource base for BDAC helps organizations understand their level of analytics maturity to maximize operational efficiencies and performance. The framework outlines how (1) process integration (creating a “single source of truth”), (2) process assimilation (restructuring to embed data skills,) and (3) diffusion (creating a data-driven culture) can enable organizations to develop BDACs to increase business value and gain strategic benefit.

Oteng Ntsweng, Wallace Chipidza, and Keith Barrett Carter pose a thought-provoking question: how can organizations harmonize humanistic and financial values using generative AI (GenAI) analytics? The article includes an examination of three real-world cases (PwC, Morgan Stanley, and Ørsted), exploring how GenAI is changing the analytics value chain, how data experts are preparing for the future, and what is being done to re-skill employees to enable effective collaboration between GenAI and employees. Building on insights from these cases, the authors provide frank conversations on ethical digital transformation and AI for social good. Their recommendations include alignment between GenAI tools and need, adopting an employee-inclusive GenAI adoption approach, and promoting leadership teams that are knowledgeable in AI and analytics. The authors conclude that the incorporation of GenAI in business analytics offers the potential for significant advancements in business value, but there is a need to foster collaboration between GenAI and data experts to enhance value without losing humanistic outcomes.

Maria P. Diaz Campo, Arman Ghafoori, and Manjul Gupta explain the growing trend of AI hallucinations (when GenAI generates unreasonable or inaccurate output) and how it can have detrimental consequences for organizations and individuals. The authors suggest that the degree to which such hallucinations are tolerated depends heavily on context and argue that individuals have lower tolerance levels for AI hallucination when the stakes are high (and vice versa when the stakes are low). They point out the importance of considering the contextual nuances surrounding the use of GenAI to help developers, decision makers, and academics establish best practices and manage potential sources of error. They also highlight the significance of understanding culture at the national level, as it can be instrumental in assessing societies’ tolerance levels to AI hallucinations. The authors’ suggested model provides unique insight into levels of analysis (i.e., personality, organizational culture, national culture) and how they pertain to AI hallucination. They make a compelling case that understanding context is critical for making informed decisions about strategically adopting and implementing GenAI (and emerging technologies in general). The article concludes with several key takeaways that can help balance potential value opportunities and risk tolerance.

Conn Smyth, Samuel Fosso Wamba, Murray Scott, Sean Coffey, and Denis Dennehy take a look at the important topic of resilient agri-food supply chains, an issue that affects us all. They report on the challenges facing the industry and explain how agri-food supply chain organizations are leveraging AI-based systems to plan for, respond to, and recover from supply chain disruptions efficiently and cost-effectively. The results show that AI-enabled information processing can build resilience in agri-food supply chains while reducing food waste and improving supply chain performance. The article is part of a wider doctoral research project and is informed by 147 survey responses from practitioners in the global agri-food industry. The authors propose a framework that maps six benefits of AI-based systems to three benefits of the agri-food supply chain and end with a call to action for a concerted effort between industry and academia to design, develop, and deploy AI solutions to make the world a better place.

In this issue of Amplify, we explore several ways organizations leverage business analytics to create business value. As we delve into this dynamic business environment, it becomes evident that leaders who understand their business and data and can strategically align their analytical capabilities are best positioned to derive business value.

Investing in the circular economy involves financial support of businesses and projects that embrace sustainable practices. Unfortunately, a lack of data availability and poor data quality make it difficult for investors to choose where to invest and evaluate the performance of their investments. This Advisor explores new sources of data and emerging technology that can be deployed to offer a more comprehensive understanding of circular investments and performance.

Stakeholders are demanding more than just financial results from organizations. They’re increasing the pressure on CEOs to encourage strong ethical behaviors in their organizations, address social problems, and take a stance on current events. The worldwide increase of social injustice, both inside and outside organizations, demands that CEOs establish cultures and processes that are inclusive of all people.

Effective adoption of next-generation banking technology is the road to greater customer engagement; faster product development; better operational management; and improved compliance, efficiency, and growth. It will also enrich the customer experience through stellar, hyper-personalized service.

In this Advisor, we explore two trends uncovered by ADL’s 2024 “CEO Insights” study: CEOs plan to continue existing growth strategies and are increasing their growth investments.

Oana Branzei, Dusya Vera, and Kimberley Young Milani take a deep dive into leadership in the eye of the “ESG storm.” The authors look at how today’s frames change tomorrow’s leaders and leadership, a critical aspect of the future of corporate responsibility. The stakes on leading responsibly have never been higher, they write, with leading business outlets warning companies about getting ESG “just right” while calling on leaders to “act purposefully.” How leaders solve this paradigm will change the future of corporate responsibility, say the authors. They then describe a framework that can help leaders see the future as the poly-activation of character dimensions and argue that as leaders activate a broader expanse of dimensions, including temperance, integrity, drive, and deep collaboration, their judgment becomes stronger, and additional futures open up. And as more character dimensions are exercised, the future’s leaders become more inclusive, collaborative, and sustainable — with or without the letters E, S, and G.

Technological and economic developments are accelerating the exploration of the cosmos and leading to the formation of a next-generation space economy that promises to significantly impact life on Earth and in outer space. This Amplify Update examines commercial developments in conjunction with key trends in emerging technologies and how they are helping to accelerate space exploration.

AI is increasingly being used for tasks in space like satellite repair, spacecraft maintenance, planetary-surface exploration, and data processing. However, there is a risk of system compromise, either through cyberattacks or internal failures. This Advisor explores AI-driven space systems and ways to mitigate the risks associated with them.

In this Advisor, Cynthia E. Clarke delves into climate strategies for boards of directors, including avoiding greenwashing, staying up to speed on potential regulatory changes, reporting on the risks of transitioning to net zero, and having a dedicated team accountable for ESG reporting to ensure information accuracy.

GenAI appears to be lowering the barrier to entry for developing sophisticated cyberattacks and scams. However, the technology also offers solutions to help meet the threats imposed by hackers, cybercriminals, and state actors. This Advisor examines the evolving GenAI threat and solution landscape.

DEI has evolved from “nice to have” to a mission-critical component ensuring an organization’s progress and competitiveness in the global market. The questions in this Advisor serve as a guide to activate transcendence and drive, which are important character traits for leading DEI efforts.

Cutter Expert Curt Hall recently spoke with Michael Marus, CIO of the Forest Stewardship Council (FSC). FSC has been testing and applying blockchain since 2021 to enable sustainability with forest-based materials and has found that blockchain’s traceability helps it achieve integrity and credibility for its certification system. This Advisor presents an excerpt from that interview.

In this Advisor, we explore findings from ADL’s 2024 “CEO Insights” study, including the first trend uncovered by research: CEOs are positive about the medium-term economic outlook and confident about future company growth.

This Advisor explores the rise of digital experience management (DXM). When implemented successfully, DXM can facilitate better engagement with existing customers, assist in acquiring new customers, and help differentiate a brand from its competition.

This Advisor delineates how character is defined and positioned within a leadership context. Based on extensive research conducted by the Ian O. Ihnatowycz Institute for Leadership, character can be understood through two foundational frameworks: the Effective Leader framework and the Ivey Leader Character Framework (ILCF).

This Advisor examines a digital twin framework that was used to create, adjust, and deploy a digital twin of a nuclear power plant in the Middle East.