AI in Decision-Making: Where Do Leaders Draw the Line?

In today’s evolving business world, AI is frequently put on a pedestal. It’s efficient, accurate, and unbiased—or so we’re told.

“Artificial intelligence and generative AI may be the most important technology of any lifetime.” - John Barrows, CEO of JB Sales [1]

But let's be real: data without context is just noise. The question isn't if AI is useful; it’s where we, as leaders, draw the line between the algorithm and the human mind. When should we trust the numbers, and when should we listen to the voice inside that comes from years of experience, cultural understanding, and empathy? This article dives into the often-overlooked balance between AI and intuition. It’s about finding that sweet spot where technology enhances, but never overshadows, the very human elements of leadership.

“It’s not about displacing humans, it’s about humanizing the digital experience.” - Rob Garf, Vice President and General Manager at Salesforce Retail [2]

AI can be a remarkable tool. Its ability to analyze massive datasets, uncover patterns, and predict outcomes is undeniable. But that doesn’t mean it’s infallible. For example, IBM's Watson for Oncology was initially heralded as a breakthrough in cancer treatment recommendations, but later found to be providing unsafe and incorrect suggestions due to flawed data training [3]. As a leader, knowing when to lean on AI and when to lean on your own intuition is not just a skill; it’s an art. And while AI can inform, optimize, and expedite decisions, it lacks something crucial—context, cultural sensitivity, and good old-fashioned human experience.

AI in the Boardroom

Today's usual boardroom, filled with executives trying to make sense of the latest AI-generated report. Numbers and projections flash across the screen, and there’s an unspoken expectation that this is the ultimate truth. But let’s pause here. Shouldn't there be room for someone to raise their hand and say, “Yes, but that doesn't feel right”? Because leadership is not just about being the best at analyzing data. It’s about knowing the intricacies that numbers can’t tell you—like the emotional pulse of your team, or the cultural nuance that an algorithm has no way of recognizing.

In places like KSA and UAE, where business is as much about relationships as it is about strategy, ignoring the human element could be a fatal flaw.

“Whoever is going to lead in the Artificial Intelligence race will lead the future. This technology will change the world.” - H.E. Omar Sultan Al Olama, UAE Minister of State for AI [4]

In these cultures, trust is built over time through personal connections, face-to-face meetings, and a deep respect for traditions. The emphasis on honor, respect, and long-term relationships means that successful business often hinges on understanding social cues and maintaining genuine human connections. We don’t operate in a vacuum, and AI doesn’t operate in the real world. It operates on data—a snapshot of history, and not the full spectrum of human behavior, intention, or feeling.

The Power of AI: What It Brings to Decision-Making

AI is quick. It’s unbiased. It doesn’t get tired after back-to-back meetings, and it certainly doesn’t hold grudges. When it comes to data crunching, AI is unparalleled. Think about how many times a decision had to be postponed simply because you were waiting for someone to run the numbers, cross-check a forecast, or draw up some reports. AI doesn’t need a lunch break. It delivers insights in minutes, often with a level of accuracy that we humans can't achieve on our own.

Take, for example, the oil and gas sector in the Middle East. Companies here are using AI to predict equipment failure before it even happens. That’s an incredible leap from reactive maintenance to proactive management.

“We estimate that the Middle East is expected to accrue 2% of the total global benefits of AI in 2030. This is equivalent to US$320 billion.” - PwC [5]

And in finance, AI is being used to predict market trends, mitigate risks, and improve customer experiences. No one’s arguing that AI hasn’t brought tremendous efficiency.

But efficiency isn’t the same as effectiveness. AI may give us the what—but it often falls short on the why.

The Human Element: What AI Misses Out On

AI lacks the heartbeat. It doesn’t understand nuance, especially the kind that comes from dealing with people. In our part of the world, where traditions run deep, where face-to-face meetings often outweigh emails, and where emotions can sometimes drive decisions, AI simply doesn’t cut it. It doesn’t understand the subtleties of a “yes” that might mean “no,” or the cultural importance of timing and respect.

Take negotiations, for instance. AI can provide you with the best possible deal, the data that ensures profitability, but what it can’t do is read the room. Imagine sitting across from a key client during a negotiation. The AI might recommend pushing harder for a certain discount based on past data, but it can't see the frustration building on the client's face or sense their hesitation. A human leader can recognize these non-verbal cues and know when to pivot strategies—perhaps offering a concession to preserve the relationship, something that a purely data-driven approach would miss.

Leadership often requires more than just facts. It requires empathy. It requires reading between the lines—something that an algorithm can’t do, no matter how advanced it is.

The Balancing Act: Drawing the Line

So how do we find balance? The truth is, it’s not about choosing between AI or human judgment. It’s about learning when to let the data guide you and when to go with your gut. Here’s a simple framework that could help:

• When dealing with repetitive tasks: Let AI handle them. These are areas where AI shines—predictive maintenance, automated responses, basic analysis.
• When dealing with people: Trust your experience. Whether it’s employee relations, negotiations, or any situation involving human emotions—stick to your instincts.
• When the stakes are high and the future is unclear: Use AI as an advisor, not the decision-maker. Let it inform you, but don’t let it replace you. You are the leader for a reason.

Consider the case of Zillow's AI-based pricing model, which led to significant financial losses when it misjudged housing prices. The over-reliance on an algorithm without human oversight resulted in a costly mistake that highlighted the necessity for human judgment alongside AI tools. [6]

Case Studies and Real-World Examples

In recent years, we’ve seen a lot of mixed results when it comes to AI adoption in leadership. Take Amazon's AI recruitment tool, which ended up being scrapped after it was found to be biased against women. The lesson here? AI reflects the data we feed it. If our historical data is flawed or biased, so too will be the decisions made by AI. Conversely, companies in the UAE have successfully implemented AI to streamline supply chain management, saving millions without replacing the crucial human oversight required to navigate unexpected disruptions.

A local example that stands out is the deployment of AI in customer service at one of the major banks in KSA. While AI can answer a lot of questions, it falls short when dealing with irate customers or complex issues that require empathy. Human representatives still had to step in to ensure that the customer felt heard and valued.

Ethics and Accountability: Who Takes the Blame?

If an AI-driven decision leads to a mistake, who takes responsibility? This is an ethical quandary that leaders must wrestle with. AI is a tool—it doesn’t carry the weight of consequences. Leaders do. When AI makes a recommendation, it’s easy to defer responsibility. “The data said so,” is often used as a shield. But ethical leadership means standing by every decision, whether made by you or by an algorithm. You must be willing to take accountability, to say, “That was my call.”

The Future of Decision-Making: An Integrated Approach

Looking ahead, the ideal is not for AI to replace human decision-making, but to augment it.

“The future of leadership is not about choosing between human intuition and AI-powered insights—it’s about combining the best of both. Leaders who can blend emotional intelligence with data-driven decisions will drive their organizations toward greater resilience and success.” - Saber Middle East [7]

Imagine a future where AI takes care of all the mundane, repetitive tasks that eat away at your time, giving you the space to focus on the creative, strategic, and human elements of leadership. That’s augmented intelligence—not AI versus human, but AI with human.

Think of it as having a powerful assistant—one that is incredibly smart, but also entirely lacking in common sense. You wouldn’t let your assistant make every decision for you, but you’d certainly let them do the groundwork, provide insights, and present data. That’s where AI fits in.

The Art of Knowing When Not to Know

Ultimately, being a great leader is not about always having the right answer. It’s about knowing where to find the right answer and, more importantly, knowing when to trust yourself over the machine. AI can tell you what the data says, but only you can decide what feels right. That’s leadership—artful, nuanced, and deeply human.