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    Beyond the Hype: Why Gen AI Transformation Requires a New Kind of Change Management  

    Written by Becci Gould

    Over the past six months, we’ve seen a surge in clients asking for support with their Gen-AI transformation efforts. There’s a growing recognition that Gen AI is not just another technological shift—it’s a transformation unlike any before. As businesses move from pilots to full-scale adoption, they can’t afford to overlook the psychological responses to this change. Working closely with heads of AI and digital transformation leaders, we’ve gained an understanding into why Gen AI adoption demands a distinct approach, how it diverges from past digital transformations, and why the human side of change is now more crucial than ever. 

    Why AI adoption needs a different approach 

    1. It’s learning by doing like never before – in training teams around Gen-AI we learnt very quickly that Gen AI is best understood through hands-on exploration, as its power truly unfolds when people use it directly. Unlike past digital transformations, there are no strict guidelines; it’s intuitive, and personal discovery is essential for shifting mindsets and forming a new relationship with technology. 

    Overcome this by: Leaders need to trust their teams’ abilities to explore and grow. Encourage this with behavioral nudges that build confidence, and set up regular touchpoints for sharing successes, failures, and innovations. 

    1. People come to AI with diverse perceptions, biases and expectationsGen-AI is forcing people to reflect on the purpose and meaning of work, and critically their role within it (self-determination theory). The fear of the unknown, combined with the status-quo bias means people are reacting in more extreme ways, and there is far more loss aversion to overcome. Layer on top of that change fatigue from years of digital transformation efforts, and you’ve got yourself a pressure cooker for resistance.  

    Overcome this by: meeting people where they’re at, overcommunicating and being completely transparent (and human) about both the tools and their limitations, and about the change curve people may experience. Whatever you do, don’t let resistance hold you back, go where the energy is (because there’s as much curiosity as there is resistance) and create moments in time for celebration, excitement and engagement.  

    1. Building the plane while it’s taking off couldn’t be more true – In many cases organisations don’t know what the future state looks like. They may have a few use cases which are essential in telling the story and showing potential, but the end goal is still unclear. Tools are evolving and being built every day, we’ve only just scratched the surface of what the possibilities are. For many, that’s exciting, for others it brings a sense of uncertainty and fear. Lewin’s Change Model which encourages organisations to unfreeze, change then refreeze must happen simultaneously or at record-speed to be successful. In many ways the ‘refreeze’ stage isn’t possible; people will constantly be in the state of flux. A growth mindset becomes essential.  

    Overcome this by: Tackling it and explaining it head on. Don’t try and pretend to have all the answers. Involve people in the process of defining the destination but leave that open to evolution as more knowledge is built.  

    1. Safety is paramount (both psychological and legal) – creating a culture of constant experimentation is essential, and that is only possible if psychological safety is in place. People need to feel comfortable to try and fail, whilst critically understanding the guardrails, legal and ethical implications particularly when Automation Bias can lead us to over-trust AI outputs. It’s in many ways a juxtaposition, one that requires careful thought and a highly tailored approach.  

    Overcome this by: Be clear about the rules and open about the legal and compliance implications of using Gen AI. Invest in culture change efforts and behaviour change pilots to shift mindsets and ways of working. Critically, ensure leaders are driving accountability at the same time as creating the culture of psychological safety; a careful balance to strike.  

    1. Leaders are learning too – whereas in most change programmes, top down leadership role modelling is the first priority, with Gen-AI adoption, the most senior leaders are often the last to adapt their ways of working. Of course, they know at an organisational level it needs to happen and are keen advocates, but on a personal level they’re often resistant to trying it themselves. This needs to be overcome, but at the same time your greatest influencers may not be who you expect.  

    Overcome this by: Invest in 1:1 coaching with leaders to help overcome any fear or resistance. Focus on creating a groundswell of influencers and champions at all levels of the organisation, use your Gen Z employees, give them a voice at the table of decision making, offer reverse coaching experiences for managers.  

    This is arguably the biggest shake up of work as we know it since the first Industrial Revolution. To overlook the human aspect of this change would be to admit defeat before you’ve even begun. Join us at the upcoming Business Change Conference on 27 November where we’ll be joined by in-house Gen-AI experts who’ll share their learnings of Gen-AI adoption.