Purpose. The purpose of the study is to scientifically substantiate the transformation of leadership models under the influence of artificial intelligence and to outline the prospects for transitioning from charismatic to algorithmic management within the digital economy. The research seeks to demonstrate how algorithmization affects leadership styles, reshapes managerial decision-making, and redefines the role of leaders in different organizational contexts.
Design/methodology/approach. The study applies a systemic and interdisciplinary approach, including comparative and structural-functional analysis, and content analysis of scientific literature and practical cases. This methodological framework made it possible to investigate the evolution of theoretical approaches to leadership, analyze the role of artificial intelligence in managerial practices, and identify barriers and opportunities for integrating algorithmic leadership.
Findings. The study establishes that artificial intelligence significantly influences management strategies, decision-making quality, and organizational adaptability. It is revealed that algorithmic leadership enhances analytical precision and operational efficiency but risks reducing trust and emotional engagement within teams. A synergistic governance concept is proposed, which combines the strengths of charismatic leadership – such as motivation, vision, and trust-building – with algorithmic decision-making supported by data-driven technologies.
Practical implications. The findings provide recommendations for organizations seeking to balance traditional and algorithmic leadership. Key measures include investing in digital competencies of managers, ensuring transparency in AI-driven decisions, and embedding ethical and social responsibility principles into algorithmic systems. These steps are expected to improve trust, adaptability, and the long-term sustainability of governance structures.
Originality/value. The originality of the study lies in conceptualizing algorithmic leadership not as a substitute but as a complementary dimension to charismatic leadership, thus offering a hybrid governance framework. This approach provides a new perspective on how organizations can preserve human-oriented leadership qualities while leveraging the analytical and predictive capacities of artificial intelligence.
Future research directions. Further studies should explore empirical testing of hybrid leadership frameworks in different industries, examine the psychological and cultural impact of algorithmic decision-making on teams, and develop regulatory and ethical frameworks to guide the integration of AI into leadership practices.
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