On The Minds of Leaders: Artificial Intelligence (AI)
Leaders will benefit from adopting artificial intelligence early on, as AI is already becoming a daily-use tool. The technology can automate repetitive tasks, augment others, minimize human error, and boost productivity (1). By alleviating the burden of tedious work, it provides the opportunity for humans to concentrate on more engaging challenges. Despite these benefits, employers eager to integrate these technologies encounter some resistance.
As a leader, here’s what you need to know.
Employees are more scared than employers regarding AI
AI has been sensationalized for years and now that it’s here, some people on your team might have fear and trepidation around it. Some workers are scared that AI will induce permanent unemployment. Several fear their income will be reduced. Others are worried that their skillset will become irrelevant, forcing them to start over in a new career. Many express enthusiasm for the potential benefits of AI, including enhanced productivity and a reduction in human errors.
Even the scientific community isn’t quite sure how AI will impact the workforce. One US economic report projected that a shocking 83% of jobs paying below $20 per hour face complete automation, and jobs that fall between $20 - $40 an hour are at a 31% risk of automation (2). A more moderate estimation from a 2017 US study argued that AI will replace 17% of jobs and create 10% new jobs, resulting in a net loss of 7% of jobs (3). A German study had a different perspective, arguing that automation wouldn’t cause total job loss, but rather, AI would change what jobs people are doing. For example, the industrial workforce may transition to the service sector and manufacturing employees may stay in the same trade but take on new tasks. (4) A UK study noted that potential unemployment due to AI will vary greatly across countries. Richer nations have the capital to invest in new technologies and will stop outsourcing jobs that had originally been based in developing countries. The study estimates that 75% of jobs in developing nations are at risk of automation (5). Finally, a 2018 study found that AI actually increased available jobs, but contributed to stagnating wage growth (6).
Acceptance ranges across the social groups, with older generations being more fearful regarding AI adoption and 25 - 44 year olds being the most likely to utilize the technology. Female executives are only half as likely to use AI compared to their male counterparts (7). Researchers have also noticed a divide between the way employees view AI compared to employers, with this recent survey with over 13,000 respondents showing that only 42% of employees are optimistic about artificial intelligence compared to 62% of employers.
ACTION YOU CAN TAKE:
As a leader who wants to utilize more artificial intelligence, you might wonder: why this divide between employees and employers? Acknowledging the information above, what strategies can leaders utilize to inspire confidence in employees regarding artificial intelligence?
1. Employees are willing to adopt AI practices
Here’s the good news: the same survey showed that interviewees, even if they are cautious, are actually more optimistic than apprehensive about artificial intelligence (9). Employees are open to the integration of AI in the workplace, but only if they believe their employer is committed to using these tools ethically and responsibly for their benefit (10). This means organizations should not just focus on the technology itself; they also need to maintain a human-centric focus - nurturing employee connections and utilizing their creativity and emotional intelligence. Leaders must emphasize ethical implementation of AI (11).
2. Employees need to be trained on AI
The level of training, or the absence thereof, significantly impacts people's readiness to embrace AI. This study found that only 14% of employees received artificial intelligence training compared to 44% of leaders. The study revealed that individuals who consistently engage with AI are 62% more likely to express optimism about the technology, while nonusers are only 36% likely to do so (12).
ACTION YOU CAN TAKE:
Here’s what leaders need to do: Make the unfamiliar more familiar. Think about a time in your life you started doing something completely new; a new sport, meeting a new person, a new technique, a new tool at work. At some point you just had to give it a try.
Integrating AI into a team’s daily routine could mean providing people introductory AI tools and uses they can “play” with. It can mean leaders upskilling employees through workshops or further education. As AI takes over routine tasks, it will mean reskilling employees to guarantee they possess the essential capabilities for adapting to new roles and responsibilities (13).
Employees need support and reassurance. When they fall, hesitate, or show fear, be there to help them get back on the bike of AI. Reinforce their value to your organization and help them see how AI tools will allow them to be an even stronger contributor to the team and achieve more. This will show employees how AI is meant to complement their work and not replace them will inspire confidence in the technology.
3. Leaders must continue innovating
Rather than utilizing AI to completely replace workers, leaders can reimagine their company's offerings and invest in AI that enhances the efficiency of its workforce. Business owners that maintain their workforce, upskill them, and use AI to augment their work, will improve productivity and create new opportunities for the company (14).
Conclusion
Leadership is about providing hope in the midst of uncertainty and fear. As leaders, we need to encourage people to try new things, including AI. Showing your team that you will:
Ethically implement AI to benefit them
Provide training, upskilling, and reskilling
Continuing thinking of new ways to utilize their irreplaceable human capabilities rather than displacing them will inspire each employee (15)
Citations:
(1) (BCG), Boston Consulting Group. “How Will Ai Change the Way We Work?” LinkedIn, November 16, 2023. https://www.linkedin.com/pulse/how-ai-change-way-we-work-boston-consulting-group-2u68e/.
(2) Goldstein, Steve. “The Robots Are Coming for Jobs That Pay $20 an Hour or Less, White ...” Market Watch, February 23, 2016. https://www.marketwatch.com/story/the-robots-are-coming-for-jobs-that-pay-20-an-hour-or-less-white-house-finds-2016-02-22.
(3) “Forrester Predicts Automation Will Displace 24.7 Million Jobs and Add 14.9 Million Jobs by 2027.” Forrester, March 3, 2021. https://www.forrester.com/press-newsroom/forrester-predicts-automation-will-displace-24-7-million-jobs-and-add-14-9-million-jobs-by-2027/.
(4) Dauth, Wolfgang, Sebastian Findeisen, Jens Suedekum, and Nicole Woessner. “German Robots - The Impact of Industrial Robots on Workers.” Centre For Economic Policy Research, September 2017.
(5) Corpuz, Eleazer. “UN Report: Robots Will Replace Two-Thirds of All Workers in the Developing World.” Futurism, February 27, 2017. https://futurism.com/un-report-robots-will-replace-two-thirds-of-all-workers-in-the-developing-world.
(6) Hoban, Brennan, and Yang You Mark Muro. “Is Automation Labor-Displacing? Productivity Growth, Employment, and the Labor Share.” Brookings, August 10, 2021. https://www.brookings.edu/articles/is-automation-labor-displacing-productivity-growth-employment-and-the-labor-share/.
(7) Minevich, Mark. “Ai Is Forever Changing Our Jobs and Reinventing The Way We Work.” Forbes, October 5, 2023. https://www.forbes.com/sites/markminevich/2023/03/31/ai-is-forever-changing-our-jobs-and-reinventing-the-way-we-work/?sh=7a6bd5b3c5e6.
(8) Beauchene, Vinciane, Nicolas de Bellefonds, Sylvain Duranton, and Steven Mills. “Ai at Work: What People Are Saying.” BCG Global, June 16, 2023. https://www.bcg.com/publications/2023/what-people-are-saying-about-ai-at-work?utm_source=linkedin&utm_medium=social&utm_campaign=none&utm_description=organic&utm_topic=none&utm_geo=global&utm_content=newsletter_1611.
(9) Beauchene, Vinciane, Nicolas de Bellefonds, Sylvain Duranton, and Steven Mills. “Ai at Work: What People Are Saying.” BCG Global, June 16, 2023. https://www.bcg.com/publications/2023/what-people-are-saying-about-ai-at-work?utm_source=linkedin&utm_medium=social&utm_campaign=none&utm_description=organic&utm_topic=none&utm_geo=global&utm_content=newsletter_1611.
(10) (BCG), Boston Consulting Group. “How Will Ai Change the Way We Work?” LinkedIn, November 16, 2023. https://www.linkedin.com/pulse/how-ai-change-way-we-work-boston-consulting-group-2u68e/.
(11) Minevich, Mark. “Ai Is Forever Changing Our Jobs and Reinventing The Way We Work.” Forbes, October 5, 2023. https://www.forbes.com/sites/markminevich/2023/03/31/ai-is-forever-changing-our-jobs-and-reinventing-the-way-we-work/?sh=7a6bd5b3c5e6.
(12) Beauchene, Vinciane, Nicolas de Bellefonds, Sylvain Duranton, and Steven Mills. “Ai at Work: What People Are Saying.” BCG Global, June 16, 2023. https://www.bcg.com/publications/2023/what-people-are-saying-about-ai-at-work?utm_source=linkedin&utm_medium=social&utm_campaign=none&utm_description=organic&utm_topic=none&utm_geo=global&utm_content=newsletter_1611.
(13) Minevich, Mark. “Ai Is Forever Changing Our Jobs and Reinventing The Way We Work.” Forbes, October 5, 2023. https://www.forbes.com/sites/markminevich/2023/03/31/ai-is-forever-changing-our-jobs-and-reinventing-the-way-we-work/?sh=7a6bd5b3c5e6.
(14) Rotman, David. “How to Solve AI’s Inequality Problem.” MIT Technology Review, May 11, 2022. https://www.technologyreview.com/2022/04/19/1049378/ai-inequality-problem/.
(15) (BCG), Boston Consulting Group. “How Will Ai Change the Way We Work?” LinkedIn, November 16, 2023. https://www.linkedin.com/pulse/how-ai-change-way-we-work-boston-consulting-group-2u68e/.
