How AI Can Transform the Future of Work

Incisive piece by the The New York Times Steve Lohr on first of its kind research by The Burning Glass Institute and SHRM on the likely impact of Generative AI on employment. Initial analyses, including our hear at Harvard Business School Project on Managing the Future of Work have identified important a number of likely outcomes. This report drills down deep, confirming many of those hypotheses. The core of the report is The Burning Glass Institute identifying the 200 occupations that are most likely to be affected by Generative AI (GAI). It isn't going to wipe out jobs wholesale. GAI will displace some tasks altogether and speedup others. It will make people more productive-- a huge boon to the U.S. economy, given lackluster productivity growth in recent years. That productivity growth will lead to companies reducing their staff or hiring needs. The biggest impact will be on classic, white collar jobs-- marketers, business and financial analysts, supply chain managers and purchasing agents, auditors, attorneys, etc. Industries will be affected asymmetrically with professional services, banking and tech. In some industries that will be less affected, specific competitors may be more vulnerable. A retailer like Tiffany's might only restructure marginally; a retailer like Williams-Sonoma with a significant web presence much more so. So, what should executives do? One, develop a strategy. Huge value is on the table and, if your competitors get out in front of you, the consequences will be significant. Companies that slide down the learning curve faster have the prospect of gaining a significant, even insurmountable data-drive advantage. Two, start demystifying GAI for your workforce. Too many companies are holding their cards close to their vests. Left to their own imaginations, workers are increasingly likely anxious and skeptical. That will undermine future reskilling initiatives. Three, start thinking about future job design. If GAI is going to unburden many white collar workers of 40%, 50%, even 60% of their current tasks, what should they be directed to do. What upskilling or reskilling should we be undertaking? How should job descriptions change? What about incentives and metrics? Start probing these questions now, don't wait and find yourself trying to change the engines on the plane while you're flying at 30,000 ft. Four, use tools like this to evaluate your organization's current design. How much disruption is coming your way? How can you start preparing for it now, such as reining in hiring for positions that are likely to be substantially transformed in the next year or two. Five, revisit your talent pipeline strategies. Where will the talent you need in the GAI world come from? Seems implausible that your talent suppliers from the pre-GAI world will all be perfect fits for the what's coming. #artificialintelligence #workforcetransformation #generativeai

🤖 Future of Work: Are Business Leaders Ready To Work With Cyborgs And Centaurs? A recent study with Harvard, Wharton, MIT, Warwick's Business Schools, and Boston Consulting Group (BCG) unveils the remarkable impact of AI, specifically GPT-4, on the world of high-skilled professionals. This study provides a valuable perspective for senior executives exploring the integration of AI into their business strategies. 1️⃣ Remarkable performance uplift for underperformers with AI Assistance: The study's astounding revelation was the dramatic performance improvement among the initially lower-scoring professionals. When these professionals (consultants) were equipped with AI tools, they experienced a whopping 43% jump in their performance. This highlights AI's potential as an incredible workplace equaliser, particularly for those striving to enhance their capabilities and output. It's a testament to how AI can empower every tier of talent within an organisation, boosting overall productivity and the quality of their work products. However, let's note that creating work products is a small part of a consultant's job, and most successful consultants I have met spend most of their time gaining and/or bulldozing buy-in for their ideas/recommendations. 2️⃣ Boost in Productivity & Quality: For tasks well within AI's grasp, the results are impressive – a 12.2% increase in task completion, 25.1% faster execution, and a staggering 40% rise in quality. This isn't just for the tech-savvy; benefits span all skill levels. 3️⃣ A Cautionary Note: When tasks fall outside AI's capabilities, reliance on AI can hinder performance. In a unique twist, the study designed a task to expose AI's blind spots, where consultants who did not have AI to help them excelled with an 84% success rate. However, their accuracy dropped to 60-70% when AI was employed, highlighting the critical need for discerning AI use in complex decision-making. Why did this happen? It's called the 'sleeping at the wheel' effect, where one relies heavily on the AI system to problem-solve and forgets to apply their intuition and knowledge. This underscores the importance of discerning where AI can be valuable and where human expertise is irreplaceable. The only way to know which task is which for your business? You have to dive in, test and learn. 4️⃣ New Collaboration Models: The study highlights two innovative approaches to working with AI: 'Centaurs' - professionals who delineate cleanly between the work that they will do and the work that AI will do, and 'Cyborgs' - who seamlessly inject AI into most of their work processes. Both models open new avenues for business problem-solving. Thanks for the fascinating study, Fabrizio Dell'Acqua, Edward McFowland III, Ethan Mollick, Hila Lifshitz- Assaf, Karim Lakhani, Katherine Kellogg, Saran Rajendran, Lisa Krayer, PhD and François Candelon. 🔗 [Links to the study in comments] #BusinessTransformation #LeadershipInAI #FutureOfWork #Innovation

Hot off the press! Today we launch a new McKinsey Global Institute report, “A new future of work: The race to deploy AI and raise skills in Europe and beyond” (Link: mck.co/deployai) Some highlights: 📌 By 2030, up to 30% of work hours in Europe and the US could be automated due to AI, requiring up to 12 million occupational transitions in each region. 📌 Demand for STEM, healthcare, and high-skill jobs will increase, while roles in office work, production, and customer service will decline. 📌 Businesses will need to significantly upgrade skills, focusing on technological, critical thinking, creativity, and social skills. 📌 Workers in lower-wage jobs must acquire new skills to transition to higher-paying roles, or risk a polarized labor market with unequal job opportunities. 📌 Accelerated technology adoption and proactive worker redeployment could boost productivity growth rates in Europe up to 3% annually by 2030; slow adoption could limit growth to 0.3%.

The Microsoft and LinkedIn 2024 Work Trend Index Annual Report is out, and unsurprisingly, AI is rapidly transforming the global workforce. Based on a survey of 31,000 people across 31 countries, here are the highlights, and what it means for education. Key Highlights: - AI usage has more than doubled in the last 6 months, with 75% of global knowledge workers reporting using GenAI tools. - 79% of leaders agree their company needs to adopt AI to stay competitive, but 60% worry their organization lacks a plan and vision to implement it. - 78% of AI users are bringing their own AI tools to work (BYOAI), cutting across all generations. - Leaders say they would not hire someone without AI skills (66%) and would prefer a less experienced candidate with AI skills over a more experienced one without them (71%). - AI power users are experimenting frequently with AI, getting support and encouragement from leadership, and receiving tailored AI training. They are seeing significant benefits in productivity, creativity, and job satisfaction. What does it mean for education? - Experience with AI is becoming a key hiring criteria, in part due to research that shows that GenAI use can significantly decrease skill gaps. - 77% of leaders say early-in-career talent will be given greater responsibilities due to AI. This has major implications for how schools and universities prepare students for the job market. - Only 39% of people who use AI at work have received AI training from their company, and only 25% of companies plan to offer training on generative AI this year. This gap between need for training and availability is similarly playing out in schools and systems right now. - As AI reshapes work, the skills required for jobs are projected to change significantly. Educational institutions will need to adapt curricula to focus on the uniquely human skills that will be most valuable in an AI-enabled work world, such as creativity, critical thinking, and relationship building. The rapid rise of AI is transforming the workplace and the job market and the entire education ecosystem has an essential role to play in equipping students and workers with the AI skills and aptitudes that are and will be most in-demand. For the full report, visit: https://lnkd.in/eyfSRzNj AI for Education #aiforeducation #aieducation #durableskills #GenAI #AIliteracy

Across many industries, there is no doubt that #AI will be a major influence on the future of the workforce. Though the goal is to augment human capabilities or foster more efficiency and effectiveness, many companies may struggle with facing disruption as they integrate AI. However, the #knowledgemanagement (KM) industry should welcome these advancements in AI as a real opportunity to force-multiply the impact the right information and insight can have on the growth trajectory of a modern company.   This future workforce will benefit from the integration of AI technologies and KM systems. At the center of that integration is the ability to efficiently store, retrieve, and socialize data. AI supplements the KM storage systems with automation of tasks like tagging & categorization, improvement of search capabilities and answers, and socialization of that relevant knowledge across teams and departments. It adds layers of integration with the other software tools that employees use every day, and will be able to surface knowledge from legacy systems across the enterprise. Lastly, AI will help personalize knowledge to the user, whether that be by role, geography, or unique use case. Ultimately as a leader at a Knowledge Management-focused company like #Bloomfire, it’s the outcomes for our customers that matter most. And from what I have witnessed across our customer base is that when our new Generative AI features are implemented, not only are users’ day to day tasks more efficient but more opportunities for learning and collaboration occur. That learning and collaboration is building a resilient, future-ready workforce for their company, focused on innovation and growth. If you are interested in diving in deeper, I explored this topic as part of an ongoing series on the future of work in our latest article with Wired. Read more here: https://lnkd.in/dwwNZkM9 and then add your thoughts below.

How can today's workforce adapt to the rapid pace of automation and technological change? The workplace is transforming faster than ever before, driven by advances like data analytics, artificial intelligence, and automation. While some jobs may be at risk, workers willing to continuously gain new skills can thrive in emerging roles. Critical Considerations • Automation will transform tasks but not fully eliminate human roles. Work will require new skills. • Retraining could add $6.5 trillion to global GDP by closing skills gaps. But it requires long-term investments. • A majority of workers are willing to learn amid industry disruptions, but a minority of organizations connect reskilling and upskilling to strategy. • Technical skills like data analytics will be in high demand across industries. Data literacy and data-informed decision-making is becoming essential. • Organizations need to implement responsible AI ethics frameworks and foster cultures of lifelong learning. To navigate this era of change, stakeholders should focus on: Workers • Seek training in digital skills like data literacy and analytics. • Stay adaptable and open to retraining. • Advocate for company programs to support continuous learning. Organizations • Align training initiatives with business strategy. • Reskill at-risk workers proactively. • Implement ethical AI frameworks and data governance. Educators • Integrate hands-on data skills into both technical and non-technical programs. • Foster lifelong learning capabilities in students. Policymakers • Fund digital training and infrastructure. • Provide incentives for employer-supported upskilling. • Enact AI accountability and data privacy laws. #FutureOfWork #DataLiteracy #DigitalTransformation #SkillsOfTheFuture #LifelongLearning https://lnkd.in/evp3vAxv

The latest research from The Brookings Institution, “The effects of AI on firms and workers,” offers timely insights into how AI is reshaping work and what that means for the future of our workforce. It shows that firms investing in AI are growing, hiring, and innovating, but they're largely hiring workers with advanced tech skills or higher-level credentials. That’s accelerating a shift in traditional pathways into good jobs, especially for those without four-year degrees or those living outside major economic hubs.   A few key takeaways: 🎯 AI is helping companies grow, not shrink, but mainly for those with in-demand skills. 🎯 Jobs aren’t vanishing, but they are changing and moving toward gig work, fragmented career paths, and more tech-centric roles. 🎯 Training alone isn’t enough. Workers need real-world support such as benefits, career guidance, and tools to navigate a shifting economy. 🎯 Wages aren’t keeping pace with productivity gains. The report reveals the concerns of a two-tiered system of haves and have-nots, those with degrees and those without.   Degrees matter of course, but so do lived experience, certifications, entrepreneurial grit, and the ability to learn new tools quickly. The future of work shouldn’t be decided by a diploma. It should be shaped by how well we open doors to opportunity, redesign training and hiring systems, and build inclusive support networks that meet people where they are.   This is more than a workforce issue— it’s a matter of equity, competitiveness, and long-term economic resilience.  #AISkills #FutureofWork #TechSkillsTraining #TechTraining #SkillsBasedHirining

AI is transforming the workplace - is your leadership team ready? AI is changing the way we work, and it's happening faster than most of us realize. I recently surveyed my team and found that they're saving a lot more time thanks to AI tools – we've gone from just a few minutes saved per day to a much more significant amount in only three months. But that's just the beginning. Ethan Mollick from The Wharton School points out that many employees are already using AI at work, often without their managers even knowing about it. It's not that they're trying to keep it a secret; it's just that a lot of companies don't have clear policies in place for how to use AI effectively. And it's not just my team – Pew Research data shows that younger workers are embracing AI for all sorts of tasks, from work to learning new skills to entertainment. The AI revolution isn't some distant future; it's happening right now. As leaders, we can't just sit back and watch this happen. We need to be proactive in helping our teams make the most of AI. That means providing the right tools and resources, and even developing our own AI solutions in-house. When we do that, we're not just adopting AI faster – we're creating a culture of innovation. I've talked to a lot of C-level executives, and they all say the same thing: when leadership gets behind AI and gives teams what they need to succeed, the results are incredible. But it's not just about moving fast – we also need to be thoughtful and inclusive as we develop our AI strategies. This is a journey we're all on together, and every employee should feel empowered to contribute and share their ideas. So, leaders, let's get on board with our teams and set sail on this AI adventure together. With open minds and a spirit of collaboration, there's no limit to what we can achieve. #AIAdoption #Leadership #WorkplaceInnovation #DigitalTransformation #EthanMollick #PewResearch #FutureOfWork [Attach the provided screenshots of the poll results and Ethan Mollick's post]

AI – Workforce Threat or Opportunity? It's undeniable—Artificial Intelligence (AI) is reshaping the business landscape. Every industry is undergoing a profound transformation in workforce strategies, and AI is a topic that resonates in nearly every client conversation I have. As a leader, it's not a matter of whether AI will impact your business and career; it's about how you strategically position yourself and your company to excel in this era of transformation. 🌐 Visionary leaders at companies like Mercedes Benz, Goldman Sachs, Google, Amazon, and others have already recognized the need for a new skillset to unlock AI's full potential. They've taken proactive steps to retool their staff over the past several months, staying ahead of the curve. On the flip side, some leaders have chosen to ignore the impending changes, much like an ostrich burying its head in the sand. I recently had a conversation with a C-suite executive at an $850M company, who shared his bewilderment about his CEO's statement in an ELT meeting: "It's unclear what AI will mean to our business, so we'll discuss strategic changes, if any, next year." 🔍 A joint study conducted by Pearson and ServiceNow, though not yet fully published, reveals a critical insight: Technology is both the area of greatest vulnerability and the one with the most opportunity. A staggering 90% of global enterprises are expected to face a severe IT skills shortage. Simultaneously, AI is poised to create a net 5.9 million new technical jobs in the US over the next three years. The threat lies in thinking that our workforce can remain unchanged in the near term. The opportunity arises from accepting that change is inevitable. 🔧 Retooling your workforce, including yourself, is not just a wise move—it's a necessity. It's time to take a proactive stance. I specialize in partnering with executives to chart strategic career courses, not just for themselves but also for their teams, enabling them to thrive in this era of transformation. If you're ready to seize the opportunity and lead your organization into the AI-powered future, I invite you to reach out. Let's collaborate on a journey towards success. #AI #CareerTransformation #StrategicLeadership #FutureOfWork #ExecutiveCoaching #Coachsultant #Retooling #Upskilling #Reskilling

The transformative impact of Artificial Intelligence on the future of work cannot be overemphasized, potentially affecting every job across various sectors. Over the past six months, I've been polling professionals to gauge the extent of their understanding and acceptance of this emerging reality. Surprisingly, it seems a considerable number of people may be in denial, stemming primarily from two factors: a deficit in understanding or education about AI, and an ego-driven belief in their irreplaceability. The first hurdle is relatively straightforward to overcome - it entails dedicating regular time to educating oneself about the latest developments in AI. This is an ongoing practice that will not only equip you with a better understanding but also keep you abreast with this fast-evolving field. Addressing the second issue, however, is more complex. The belief that we can outperform AI in our respective roles is slowly but surely being challenged, with AI advancements showing us the reality is otherwise. I propose two approaches to tackle this situation: 1. Embrace AI and explore how it can augment your current role. Leveraging its capabilities can make you more efficient and better positioned in your job. 1. While experimenting with AI, reflect on the aspects of your role that could potentially be automated. Assess the risk of redundancy and start planning for the future. Lastly, the point of contention that appears to be difficult for many to accept is the idea that AI can outperform us in communication skills. The perception is that these skills distinguish us from AI. However, AI holds the potential to overcome two significant human communication challenges: timeliness and consistency. The future is here, and it is shaped by AI. We have the choice to either embrace this new reality or risk being left behind.