On March 19, SEED Executive School, in partnership with EY, hosted its latest SEED Connect event, bringing together executives, AI experts, educators, and young professionals to explore how artificial intelligence is transforming leadership, decision-making, and workplace dynamics.

Erik Slooten, Partner at EY AI Confidence, led a dynamic panel discussion featuring Dr. George Tilesch, Chief AI Expert at EY AI Confidence, Krisztián Kurtisz, CEO of UNIQA Biztosító Zrt., Tamás Papp, CEO of CollabIT Switzerland AG, Johannes Wachs, Associate Professor at Corvinus University of Budapest, and Flóra Duhaj, Senior People Consultant at EY. 

The event began with opening remarks from Erik Slooten, who highlighted the growing impact of AI on businesses and the need for leaders to embrace change. Dr. László Eszes, CEO of SEED Executive School, followed by emphasizing SEED’s mission to support executives in navigating AI-driven challenges with confidence and strategic foresight.

AI Adoption: A Leadership Imperative

A key topic of the discussion was that AI is already deeply embedded in corporate life, often without formal approval. Employees are integrating AI tools into their work, a phenomenon known as “shadow AI”, yet many companies still lack a clear strategy for implementation. Slooten stressed that while executives may hesitate, AI adoption is happening bottom-up, and businesses that fail to embrace it risk falling behind.

Tilesch emphasized that AI’s ease of use removes barriers between employees and technology, making it far more accessible than previous digital transformations. He pointed to research showing that 67% of employees in companies with AI restrictions still use AI tools in secret, highlighting the growing gap between corporate policies and real-world usage.

Duhaj, representing the perspective of the younger generation, explained that Gen Z professionals see AI as an essential tool rather than an optional innovation. She warned that companies banning or limiting AI risk losing young talent, as they prefer workplaces where technology enhances efficiency and creativity.

AI’s Role in Productivity and Job Transformation

The discussion also touched on AI’s dual impact on the workforce—increasing efficiency while raising concerns about job displacement and overreliance on AI.

Kurtisz referenced Hungary’s insurance industry, where the number of agents declined from 80,000 to over 30,000 over two decades, largely due to digitalization and automation. He suggested that similar shifts could be expected across multiple sectors.

Wachs warned that while students entering the workforce today are already fully immersed in AI-driven workflows, this reliance may come at a cost. If young professionals depend too much on AI for tasks such as coding or analysis, they may fail to develop critical thinking skills and a strong knowledge base, which could ultimately hinder their ability to innovate and solve complex problems.

Papp suggested that AI should be seen as a productivity enhancer rather than a direct job replacement. He encouraged leaders to promote AI-assisted workflows, allowing employees to focus on higher-value tasks. He also highlighted a common challenge in many organizations: valuable knowledge from meetings and negotiations is often lost or forgotten. By recording and analyzing discussions with AI tools, businesses can not only enhance day-to-day efficiency but also uncover bigger challenges and opportunities that may otherwise go unnoticed.

AI and Cybersecurity: The Hidden Risks

While AI offers new opportunities, it also introduces critical security challenges. The panelists addressed data privacy concerns, AI-generated cyber threats, and the ethical implications of AI misuse.

Tilesch warned that AI is making cybercrime more accessible, enabling amateurs to generate malware, deepfake scams, and phishing attacks with minimal effort. He stressed that companies must proactively develop AI security policies rather than assuming traditional IT protections will suffice.

Kurtisz acknowledged that many companies still lack a formal AI security framework, making them vulnerable to data breaches. Papp reinforced this point by citing the Samsung AI security breach, where sensitive internal code was uploaded to ChatGPT and subsequently leaked. He urged businesses to establish strict AI usage guidelines to prevent similar incidents.

The panelists agreed that corporate leaders must actively manage AI security risks, balancing innovation with responsible governance.

The Risk of Overreliance on AI: What Happens to Innovation?

A particularly thought-provoking moment came when Kurtisz raised a fundamental question about AI’s long-term impact on knowledge creation. He pointed out that AI currently operates by aggregating and refining human-generated knowledge, but if people stop thinking critically and rely solely on AI to solve problems, how will new knowledge be created?

Wachs echoed this concern, warning that while AI can automate many processes, human creativity and original thinking remain irreplaceable. Without them, there is a risk that AI will simply recycle existing information rather than drive real innovation.

Papp also emphasized that AI should enhance learning rather than replace it, particularly for students. He suggested a smarter approach to AI-assisted education: instead of using AI to solve homework, students should be taught to use AI for structuring and simplifying complex information, such as turning history lessons into easy-to-read tables or breaking down mathematical problems step by step. This way, AI can become a powerful learning aid rather than a shortcut that stifles intellectual growth.

The Cost and Regulation of AI: Is It Sustainable?

The conversation also covered AI’s long-term economic impact and the regulatory landscape. Kurtisz questioned whether AI would remain cost-effective or if businesses would become financially dependent on a handful of AI providers.

Tilesch noted that the EU’s AI Liability Directive was recently abandoned, creating uncertainty around AI governance and accountability. Without clear regulations, businesses must take responsibility for self-regulating AI usage and ethics.

Slooten emphasized that AI’s real power lies in its ability to solve previously unsolvable problems. However, he cautioned that companies should carefully evaluate AI investments, ensuring they align with long-term business strategies rather than following short-term trends.

AI as a Leadership Challenge, Not Just a Technology Shift

The panelists concluded that AI is not just a technological tool but a fundamental leadership challenge. Leaders must proactively integrate AI, ensure secure and ethical usage, and prepare for the profound workforce transformationsahead.

Special thank you to the EY team for helping create a meaningful conversation about AI’s impact on leadership and strategy, giving our community valuable insights and practical perspectives. We look forward to continuing the dialogue!