Technology is changing our companies at a breathtaking pace. Data-based decision-making processes, AI-supported systems, and automation increase efficiency and enable new business models.
But as companies become data-driven, a key question arises: How do we preserve our humanistic values in a world dominated by algorithms?
Technological innovations such as artificial intelligence are fundamentally changing corporate strategies. According to a study by PwC, AI could contribute up to $15.7 trillion to the global economy by 2030, underscoring its transformative influence on business models and decision-making processes1.
At the same time, social pressure continues to grow: An analysis by the World Economic Forum makes it clear as early as 2023 that consumers and risk managers are demanding ethical behavior and clear regulations for AI to minimize potential risks for companies and society2.
Values as a decision compass
Values-based management is not the opposite of digital transformation – on the contrary. CEOs who combine technology with clear ethical principles create sustainable success and strengthen the trust of customers, employees, and investors.
Three central principles:
- Transparency in data-driven decisions: AI systems and algorithms should be understandable and explainable. Black-box decisions endanger trust and acceptance.
- Human-centered technology design: The focus should be on efficiency and social responsibility. For example, a fair AI-based personnel decision can avoid discrimination.
- Resilience through values-based leadership: CEOs should establish a robust leadership culture and promote openness to be more resilient to change and crises.
Deloitte’s Global Resilience Report underlines that resilience is key to long-term competitiveness in volatile markets3.
Implementation in practice
How can boards of directors and CEOs establish values-based management in a data-driven world?
A look at the financial industry
In the financial sector, this could be achieved through fair and transparent AI-supported lending. Instead of relying exclusively on historical data and traditional credit checks, financial institutions can design algorithms to consider alternative, socially acceptable factors.
A practical approach would be for banks to work with ethics experts and regulators to develop models beyond purely financial metrics. It also includes innovative scoring methods that evaluate customer groups with stable incomes but not more creditworthy and fairer without significantly increasing the risk for the financial institution.
This way, they can reduce distortions, strengthen customer trust, and open up new markets long-term.
A look at the automotive industry
In the automotive sector, this could be achieved through intelligent quality control. An AI-supported system can help to identify and exclude production errors at an early stage. However, boards and CEOs should consider ethical and sustainable factors instead of relying solely on mathematical precision.
A practical approach would be to trim AI for efficiency and consider industrial realities and sustainable resource use. On this basis, companies can work with experts from manufacturing, materials science, and ethics to develop models that make differentiated decisions – for example, by distinguishing between safety-critical and non-critical deviations.
This way, companies can reduce unnecessary material waste, strengthen supplier cooperation, and increase trust in technology-based processes.
Key takeaways
- Technology and values are not opposites – they must be thought of together.
- Transparent, ethical decision-making processes create trust and ensure long-term success.
- CEOs and executives must actively integrate the values compass into the digital strategy.
Conclusion
The most successful companies of the future will be data-driven and values-based. Organizations that use technology in isolation risk reputational damage, regulatory challenges, and declining trust among customers and partners.
Boards of directors and CEOs who embed ethical guidelines as an integral part of their digital strategy create sustainable competitive advantages and a resilient corporate culture.
How do you ensure that your digital transformation is efficient and values-based?
See you in the following memo,
– Mike Flache
Sources
- PwC, “Sizing the Prize: What’s the Real Value of AI for Your Business and How Can You Capitalise?” 2024
- World Economic Forum, “AI: These are the biggest risks to businesses and how to manage them,” 2023
- Deloitte, “Global Resilience Report: Toward True Organizational Resilience,” 2022
