The state of play of gen AI at work: What actions HR leaders need to take?
Artificial intelligence seems to be a recurring theme with many businesses and entire industries. We can think of no other area in which it will impact than Human Resources. From recruitment to training, advancement, productivity and more, AI is going to play a major role. How? At its best, harnessing it for the greatest benefit, and at its worst, controlling it so it does not become unwieldy or provide inconclusive information that can harm growth.
Expert Insight
Harvard Faculty Chair Paola Cecchi Dimeglio has been working in the AI field for two decades, advising both public entities and private companies on AI governance.
In this exclusive UNLEASH OpEd, Cecchi Dimeglio shares the challenges and opportunities for generative AI specifically at work.
Read on to find out her expert advice on the path forward for HR on generative AI.
Generative AI technologies, including tools like ChatGPT, are poised to revolutionize the way we work.
As these tools become more integrated into daily operations, HR leaders must understand their impact and prepare for the enormous changes they could bring.
How could generative AI impact the workplace?
To truly understand the transformative power of generative AI, consider these striking statistics.
A recent LinkedIn survey found that 47% of executives believe that using generative AI will increase productivity, and 44% plan to increase their use of AI in the next year.
The McKinsey Global Institute estimates that generative AI will add between $2.6 and $4.4 trillion in annual value to the global economy, increasing the economic impact of AI by up to 40%.
This acceleration could lead to the automation of half of all work activities by 2040, a decade earlier than previously estimated.
Goldman Sachs predicts a 7% increase in global GDP attributable to generative AI, affecting two-thirds of occupations through AI-powered automation.
An Accenture analysis suggests that 40% of working hours across industries could be automated or augmented by generative AI, with sectors like banking, insurance, capital markets, and software showing the highest potential.
These figures highlight the enormous potential of generative AI, underscoring the urgency for HR leaders to understand and act upon the opportunities it presents.
However, while the potential benefits are significant, there are also critical challenges and risks that HR leaders need to be aware of and address.
For instance, many people worldwide are concerned about the potential for AI to eliminate jobs.
For HR leaders, understanding these concerns is crucial as they play a key role in managing the workforce transition in the age of AI.
A Gallup study found that 75% of Americans believe AI will decrease the number of jobs in the US over the next 10 years. This concern is particularly high among individuals without a bachelor’s degree and those aged 45 or older.
Interestingly, younger adults aged 18 to 29 are the least concerned, with 66% believing AI will reduce jobs compared to 80% of adults aged 60 or older.
Similarly, a Eurobarometer survey by the European Commission revealed that nearly three in four Europeans believe AI and robots will eliminate more jobs than they create.
The skills and diversity challenges with AI
It is clear that with the rise of generative AI, the skills needed for jobs globally are expected to change significantly over the next decade.
However, as things stand, many businesses are lagging in preparing their workforce for AI.In the US, according to a survey by IBM, one in five organizations report that they lack employees with the necessary skills to utilize new AI or automation tools, and 16% struggle to find new hires with these skills.LinkedIn reports that only 44% of businesses in the UK, 36% in the Netherlands, and 38% in France are actively supporting their workforce to become AI-literate.Beyond job replacement worries and the skills gap, another challenge HR leaders need to be aware of are diversity concerns with AI at work.A recent US analysis indicates that approximately 79% of employed women, equating to nearly 59 million individuals, are in jobs vulnerable to disruption and automation of AI.This means that there is a potentially significant negative impact on female employment due to AI automation.HR needs to address fears about job displacement by ensuring employees are equipped with the necessary skills to adapt to new technologies are vital steps in maintaining a motivated and capable workforce.
The knowledge gap in AI usage
Another significant challenge for HR leaders is the lack of awareness about how AI is currently being used within their organizations.
This perception gap creates blind spots for organizations, hindering effective decision-making and eroding trust between leaders and employees.
A Gallup survey of CHROs revealed that nearly half (44%) of these leaders did not know how often their employees are using AI.
The Gallup data also discovered that most employees—seven in ten—never use AI in their job, with only one in ten using AI weekly or more often.
Among those who frequently use AI, 40% use it for routine tasks, 30% for learning new things, and 25% for identifying problems.
The research further found that many employees do worry about AI, but nearly half (47%) do feel prepared to use AI in their roles. Yet, only 16% of CHROs perceive their workforce as ready for AI adoption.
This discrepancy can lead to employees independently using AI tools without proper guidance, potentially creating inconsistencies and risks like biased hiring decisions, data privacy breaches, and inaccurate performance evaluations.
For example, an employee might use an unverified AI tool for screening job candidates, which could inadvertently favor certain demographics over others, leading to biased hiring practices.
Similarly, using AI tools without adequate data security measures could result in sensitive employee information being exposed or misused.
Furthermore, without proper training, AI-driven performance evaluations might rely on flawed algorithms, producing inaccurate assessments that could unfairly impact promotions and salary decisions.
In response to these challenges, more than half (57%) of CHROs have implemented safeguarding policies for AI usage.
While these measures are necessary to ensure responsible AI deployment, there’s a compromise to be struck since an overly restrictive approach can stifle innovation.
Leaders must balance control with promoting a culture of agility, collaboration, and creativity that are essential to businesses reaping the full rewards of AI.
The path forward for HR leaders on AI
To harness the full potential of generative AI, HR leaders must:
1. Educate and train employees:
Invest in comprehensive training programs to enhance AI literacy and ensure employees feel confident using AI tools
2. Promote transparency and trust:
Clearly communicate how AI tools are used and the benefits they bring. Foster an environment where employees can voice concerns and provide feedback on AI applications.
3. Monitor and adjust AI tools:
Regularly review AI systems to identify and mitigate biases.
4. Implement balanced safeguards:
Develop policies that protect against misuse without hindering innovation. Encourage responsible AI usage by setting clear guidelines and expectations.
5. Bridge the knowledge gap:
Conduct regular surveys and studies to understand how AI is being used within the organization. Use this data to make informed decisions and build a cohesive AI strategy.
Ultimately, generative AI is set to transform the workplace, offering significant productivity gains and growth opportunities.
However, to fully realize these benefits, HR leaders must address the challenges and risks associated with AI adoption.
By promoting transparency, fostering trust, and ensuring responsible AI usage, HR leaders can navigate this new landscape effectively, driving innovation and creating a more efficient and equitable workplace.