Leadership and algorithms – how digital tools affect the role of managers
What happens to leadership when contact between managers and employees shifts from face-to-face meetings to digital leadership tools? This is a question that interests organisational researcher Nick Butler. In his research, he examines the leadership challenges that arise in the wake of new technology such as artificial intelligence (AI).
“Traditionally, leadership has been linked to soft values, where a leader’s role is to ensure that staff are inspired and engaged and see meaning in what they do. What happens when that task is digitalized and mediated by algorithms? That's what we want to investigate,” says Nick Butler, Professor of Business Administration at Stockholm University.
He conducts research in critical leadership studies, a field of research that examines the role of companies and business in society. Above all, it is the role of leadership that interests him.
“Critical leadership studies does not necessarily mean that you are critical of the field, but more importantly that you take an analytical approach to leadership,” he says.
Myths about leadership
According to Nick Butler, leadership is an area that contains a lot of implicit social values. For example, a leader is often expected to be powerful and charismatic.
“We have so many preconceptions about what a leader should be,’ he says. ‘They are expected to be superheroes who can radically transform an organisation through the strength of their personality. When I teach organisation studies, I usually ask students who they imagine when they think of a leader. They often mention well-known business leaders such as Elon Musk or political icons such as Martin Luther King Jr. They rarely think of the more low-key managers they encounter in their own everyday lives”.
How does this relate to research on algorithmic leadership?
“There is an inherent tension in the encounter between the leadership role and digital tools, a clash between soft human skills and quantitative metrics”.
There is not much previous research on algorithmic leadership, which makes Nick Butler and his research team pioneers. At the same time, the use of AI-driven tools in organizations is increasing. Above all, these are digital tools designed to measure employee motivation levels and enable management to keep track of how staff are doing.
“It will therefore be very interesting to see what choices managers and leaders make as the use of digital leadership tools becomes more common”.
Apps that ask questions
Using qualitative methods, the research team is forming a picture of how the tools work in practice.
“Right now, we're looking at a tool that sends daily questions to employees through an app: How are you feeling today? Do you feel engaged? Do you need support? Are you looking forward to going to work?”
According to Nick Butler, the basic idea behind the tool is to quickly and efficiently find out how employees are feeling. Are they motivated? Or completely unmotivated? The idea is that anonymous data will provide managers with a signal about what needs to be done. The ultimate goal is to prevent employees from leaving the company or organisation. Retaining staff can be difficult in a competitive industry, and hiring new employees is often time-consuming and expensive.
“But it's a bit paradoxical that a tool that is supposed to focus on well-being and human values operates according to predictive analytics. Does the tool produce the desired results? We are very curious about that”.
What have you seen so far?
“That the outcome is very dependent on how the responses are interpreted by management. The surveys are anonymous – the idea is that they should provide a general indication of how staff are feeling. In the best-case scenario, any negative response would lead the manager to approach the team without trying to identify the individual who responded. The negative response could then lead to a positive change for everyone”.
In practice, however, a negative response may spark a guessing game where the manager tries to find out who the dissatisfied employee is. According to Nick Butler, there is a risk that the tool could generate tensions in the workplace.
“We humans are complicated creatures,’ he continues. ‘In the worst case, the manager sees negative responses as a failure and so misses the whole point. It is important to use the tools as they are intended: a starting point for face-to-face discussions between individuals or in groups. Ultimately, it is leadership skills that determine how things turn out”.
About algorithmic leadership
When managers use automated algorithms in their leadership tasks. This may involve, for example, using digital platforms to measure, track, and increase employee engagement and well-being. Examples of tools for algorithmic leadership are Culture Amp and Qualtrics XM.
About Nick Butler
Nick Butler is a professor of business administration, specialising in organisational research at Stockholm Business School, Stockholm University. The research project on algorithmic leadership is funded by the Swedish Research Council and investigates the development and use of digital leadership tools in high-performance organisations.
Last updated: October 22, 2025
Source: Communications Office