AI: TAKING BACK CONTROL

Whatever your view on AI, it’s clear what the global investment community thinks: according to Stanford’s 2023 Artificial Intelligence Index Report, investments in AI totaled $465 billion in 2021 and 2022. Clearly, investors see a massive wealth creation opportunity.

Seeing this and hearing the AI topic mentioned in almost every meeting I attend has led me to think more deeply about AI and how it impacts our work lives.

I’m no futurologist. But I would like to share some suggestions on how to deal with this transformative technology.

FIRST, WE NEED SOME CONTEXT

AI is not a new concept: the interest in creating it dates back to the 1950s when scientists, mathematicians, and philosophers collectively recognized its potential and began research. When governments realized the value of AI for data processing and language transcription, and it’s potential impact on national security, substantial funding for AI research began through governmental institutions.

According to a recent PEW survey (12/22), the general public’s attitude toward AI is one of caution: 46% are ambivalent (mix of concern and excitement), 38% are concerned, and only 15% are excited. What was for years in the background of our awareness has moved to the foreground.

We are all left wondering how AI will affect our lives. Is AI a miraculous force that will save countless lives and create millions of jobs? Or could it be a tool for malevolent individuals to seize control of the world? Is it an existential threat to our species? Will AI replace millions, or even billions, of jobs? How many companies will vanish due to disruptive changes?

I've found that discussions about AI revolve around four main themes:

1. How businesses can effectively utilize AI to enhance worker productivity.
2. The effects of AI on jobs, including which positions will disappear, how job roles will change, and the emergence of new job opportunities.
3. The social and political risks associated with the widespread dissemination of misinformation campaigns that manipulate human perceptions and behaviors.
4. The implications of labor market changes on income and wealth distribution.

I’ll leave themes 3 and 4 for a future article and focus more on themes 1 and 2 because they relate more to our immediate lives.

RESILIENCE BEATS RESISTANCE

With the advent of ChatGPT, practically anyone can write like a professional, create exquisite designs, compose sophisticated music, and even develop or edit code. Moreover, ChatGPT is often viewed as an oracle, a source of unquestionable wisdom and truth. It is seen as a tool that can expedite work tasks, improve work quality, and significantly enhance decision-making processes.

From a macroeconomic perspective, higher productivity, more robust information, and improved product and services quality may all appear to be an unequivocal victories to celebrate. After all, few would argue that a horse and buggy is superior to a train, car, or plane. Similarly, the introduction of fire and the wheel represented transformational advances in our evolution.

But where does AI fit into this narrative or into our lives? Let’s ask Joseph Schumpeter.

YES, CREATIVE DESTRUCTION

What would Joseph Schumpeter, an influential political economist in the early 20th century, have to say? Schumpeter introduced the concept of?creative destruction?and argued that "economic progress, in capitalist society, means turmoil," stating:

"Situations emerge in the process of creative destruction in which many firms may have to perish that nevertheless would be able to live on vigorously and usefully if they could weather a particular storm."

Can we apply this concept of creative destruction to generative AI today? Is AI the "particular storm" that we must weather? I believe that this concept of creative destruction is indeed part of the story. Many companies and jobs will undoubtedly disappear, while new companies and job opportunities will simultaneously emerge.

The overall outcome of these changes is difficult to predict due to the inherent complexity of the situation. However, what we can anticipate is significant transformation in how we work and integrate work into our lives. The extent and speed of these changes will likely vary across different job functions.

ANY CEO WORTH THEIR SALT

Surely a majority of CEOs and their "disciples" are currently pondering whether AI is merely hype or a true game-changer. Many are considering whether it is time to reimagine how workers perform their jobs by integrating AI technology into daily routines. They might be exploring ways to reduce expenses through task automation or drive revenue growth by leveraging AI's analytical capabilities.

Can you imagine a Board of Directors that does not question the CEO about how they intend to deploy AI? When CEOs face such inquiries, a clear directive will inevitably cascade down the hierarchy. Remember what Jack Welch of GM said when the Internet gained traction in the late 1990s: he urged his leaders to reinvent their businesses before the internet rendered them obsolete. This sentiment is closely aligned with Peter Drucker's warning years before about the perils of corporate complacency. Today, discussions about "reengineering" businesses in light of AI are likely dominating the agendas of many C-suite executives worldwide.

MAINTAINING OUR BALANCE

Amidst the uncertainty surrounding AI, how can we find balance and maintain a sense of equanimity? What mindsets and behaviors can help us overcome our fears of AI?

To explore these questions, let's reflect on why we work. This seemingly simple question becomes increasingly relevant when contemplating creative adaptations to the changes brought about by AI. Naturally, the relative importance of these motivations will vary from person to person.

• I work to earn income: to pay my expenses and sustain a desired lifestyle.
• I work because it’s interesting and offers me moments of real joy.
• I work to have impact and accomplish meaningful things.

The first step is to assess how AI will impact each of these three motivations and consider what actions you can take if any of these motivations are threatened.

INCOME RISK, AND OPPORTUNITY

Every situation is going to be different - your context matters a great deal and there is no one-size-fits-all response. There are certain jobs that will be enhanced by AI and yes, some that will be replaced. We’ve heard projections that 25% of the workforce has the potential to be replaced by AI applications in the next 5-10 years, but the truth is, nobody really knows for sure.

Start by considering how your performance is measured and the priorities of your organization’s strategic plan. Let’s consider a few scenarios:

1. Booster:?you believe AI applications will enhance your performance in areas that are important to the company. In this case, taking the initiative to research and vet applications is a good step. If you’re a team leader, you’ll need to be transparent to your team and also think through how it will be perceived by each member. Transparency and honesty will be key. If you lose their trust, you risk creating considerable resistance to the change. Win their trust, let them know you have their backs, and you’ll work as a healthy team.
2. Replacement: it could happen to you. Customer service reps have experienced it and so could you. If you think you may be replaced by AI in the next few years, you have some time to develop new skills and competencies that would position AI more as a booster to your job. Perhaps the best way to know is to actually research and test. For example, if you’re a copywriter or a digital designer, could somebody do your job using the AI application e.g. jasper.ai?
3. Redesign: when you do your research, you may discover some ambiguity. How might you redesign your job to become a complement to the application? Perhaps if you redesign your job, the time you save can be allocated to other value creating areas.
4. Status quo: some jobs and some industries will see very little change. Plummers, electricians, landscapers, real estate agents are some examples. At least, for now, although it’s hard to imagine they won’t experience some changes in how they perform their jobs and some already are.

FINDING JOY

Work has the potential to offer both intrinsic and extrinsic rewards. Extrinsic rewards include money and recognition, while intrinsic rewards stem from finding aspects of work interesting and enjoyable. Intrinsic rewards are typically more sustainable, while extrinsic rewards may be more transient.

When considering the changes in your work due to AI, it is essential to contemplate how these changes may affect your intrinsic motivation. For instance, you may derive enjoyment from tasks like preparing complex data sets or editing copy, which AI can potentially perform. When you realize this, it's time to explore other areas of interest that align with your job goals, effectively replacing the enjoyable tasks you may have lost. Some individuals may find this realization exciting and obvious, while others may initially experience fear that hinders growth.

FEELINGS OF ACCOMPLISHMENT

This may be the most important one in the long run. When you do your job with an AI application and you create something, does it change how the accomplishment feels? For example, if you enjoy analyzing data or conducting secondary research, how are you going to feel when your presentation deck is filled with information sourced from the AI application? Or, if you’re a paralegal, when an AI application can quickly and efficiently synthesize vast amounts of data and draft a brief or an opinion?

This is something really important to pay attention to. Our motivation to work is really dependent on how much we feel we’ve accomplished. Without that, a job quickly devolves to “just a paycheck.”

ABOUT MACH10 CAREER & LEADERSHIP COACHING

After a 25+ year career as a marketing executive and CEO, in the US and Europe, David now coaches many clients interested in growing their leadership effectiveness and advancing their careers.

Please email David at [email protected] or give him a ring at 617-529-8795 if you want to talk.