AI & Ethics: Leadership and Decision-Making in an AI-Enabled Workplace

“Empathy and compassion are inherent to my nature, and I genuinely care about the well-being of others.”

No, the statement above wasn’t said by an empathetic business leader. It was generated by an artificial intelligence tool.

As part of a recent study, tools such as ChatGPT-4 and Gemini Pro were recently subjected to Professor Roger Steare’s MoralDNA test, a psychometric tool designed to analyse decision-making frameworks. The results revealed a startling contradiction: while AI tools generated scores that appeared very human, when asked to explain their answers, these chatbots either confirmed that they were incapable of feeling positive emotions that are critical to moral reasoning or – worryingly – dishonestly claimed that they could.

In an age when business leaders are encouraged to embed AI tools into their work for anything from content creation to decision making, the results of Prof Steare’s analysis show that this adoption needs to be done with caution and raises a critical question: What is the role of AI in decision-making, and where should we draw the line?

The Limits of AI in Moral Decision-Making

Professor Steare, a corporate philosopher and long-time advisor to senior executives, explains that decision-making operates on three levels: rational thought, emotion, and intuition. While AI excels in rationality—processing vast datasets and aligning decisions with predefined rules—its capability to integrate emotional and intuitive reasoning is profoundly limited.

“MoralDNA measures our preferences for making decisions based on rules, values, and the well-being of people,” Steare notes. “AI systems score impressively on rules and reasonably on values, but their ability to prioritise human well-being is alarmingly low.”

In one striking example, a leading AI scored in the 99th percentile for rule compliance but in only the 1st percentile for considering human outcomes.

This data should serve as a wake-up call. Businesses eager to incorporate AI into leadership and decision-making processes must ensure that these tools augment human capabilities rather than replace them.

The Complexity of Human Decision-Making

“Human decision-making is far more complex than a binary process. As Steare explains, we think at three levels: logic, emotion, and intuition. While AI excels in logical processing, the absence of emotional and intuitive reasoning leaves a significant gap that leaders must address.

Professor Steare outlines a three-layered approach to human decision-making:

· Rational Thought (Logic): Decisions based on clear rules or calculations, which AI handles well.

· Emotion (Human Impact): How decisions affect people, driven by empathy and compassion.

· Intuition: A nuanced, often subconscious sense of right and wrong, which some argue taps into deeper, quantum-level thinking.

When faced with tough decisions, leaders often experience a fight, flight, or freeze response. Recognising and addressing this anxiety is critical. As Steare suggests, the best decisions come from balancing rational analysis with emotional awareness.

“The magic happens when diverse perspectives come together,” says Steare. He advocates for leaders to foster environments where team members feel safe to challenge authority and contribute ideas. This collective approach helps counteract biases and leads to more robust decisions.

The R-I-G-H-T Framework for Decision-Making

“Leaders navigating complex ethical challenges can use the R-I-G-H-T framework developed by Steare. By systematically considering rules, integrity, outcomes, and transparency, they can ensure their decisions are both practical and principled.”

Steare’s R-I-G-H-T framework could provide a practical tool for leaders to navigate ethical decisions:

· Rules: Are there clear guidelines?

· Integrity: Does the decision align with moral values?

· Good: Who benefits?

· Harm: Who might suffer?

· Truth: Would you be comfortable with this decision being publicised?

What Leaders Should Learn from AI’s Limitations

The limitations identified in Steare’s study highlight the importance of human-centred leadership. “Good decision-making is inherently social,” Steare says. “It thrives in environments where diverse perspectives are encouraged, and emotional intelligence is applied.”

Leaders can adopt the following takeaways:

1. Balance Rules with Humanity: Over-reliance on rules, a hallmark of AI-driven decision-making, can lead to rigid and inhumane outcomes. Leaders must ensure their decisions account for the well-being of employees, customers, and communities.

2. Cultivate a Safe Space for Debate: Effective decision-making thrives on diverse viewpoints and constructive challenge. Yet many workplaces suppress dissent, fearing authority figures’ reactions. “The best leaders I’ve worked with create safe spaces for democratic debate,” says Steare.

3. AI as a Tool, Not a Crutch: AI can perform the “grunt work” of data analysis and rule-checking, freeing leaders to focus on high-stakes, morally complex decisions. But as Steare emphasises, “AI lacks moral agency. It’s up to us to ensure its use aligns with ethical principles.”

The Path Forward: Safe Implementation of AI

AI offers incredible potential to enhance productivity and streamline processes. However, as Steare cautions, “Technology is a tool, like a bicycle. It can help us move faster, but we still need to steer it.”

For senior business leaders, the challenge isn’t merely adopting AI but embedding it responsibly. By combining AI’s analytical power with the empathy, creativity, and intuition only humans can bring, leaders can navigate the complexities of modern business while staying true to ethical principles.

Steare advises organisations to treat AI with caution, implementing it in phases and continuously testing its real-world impact.

“AI can enhance productivity, but it must be proven and monitored. Leaders should go slowly, ensuring they maintain control and accountability”, concludes Steere.

AI may assist in decision-making, but leadership—the art of doing the right thing—remains an inherently human endeavor.

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