Optimizing AI in the Workplace

Generative AI has taken the business world by storm recently. From ChatGPT to Google Gemini, business leaders and employees alike are contemplating how these advancements are going to impact their organizations and their individual jobs.?

This week’s Leadership Lab newsletter is all about generative AI. In this edition, we’ll cover:?

• Concerns and opportunities regarding AI in HR
• Will AI replace human jobs?
• Key findings from research on AI at work
• A framework for leveraging generative AI to create value

AI in HR: Concerns and Opportunities

Gartner reports that 76% of HR leaders believe that if their company doesn’t implement AI in the near future, they’ll be less likely to succeed than those who do.

The rapid advancements in these technologies aren’t without concerns, however. Many HR leaders are concerned about factors such as data privacy, bias, and ethical mishaps.

However, despite these concerns, Gartner reports that 52% of HR leaders are exploring generative AI use cases and potential opportunities.

If you’re hoping to capitalize on this technology and lead your HR team to success, you need to learn how to optimize the benefits while mitigating the risks of AI.

Click here for a guide to maximizing the value of AI in HR.?

Will AI Take Your Jobs?

Recent insights from Forbes and the Wall Street Journal reveal that, at the moment, most jobs aren’t in immediate danger of being replaced by AI.?

According to a Forbes article published yesterday, AI is likely to augment human jobs, rather than outright replacing them. The article advises that to protect yourself from AI usurping your role, you should take the following actions:?

• Educate yourself: Experiment with generative AI tools and learn what they can and can’t—or shouldn’t—do.?
• Assess its potential impact: Consider how your work will change as a result of advancements in AI technology
• Position yourself effectively: As you become increasingly proficient at leveraging generative AI, use this expertise to position yourself as someone who can harness the power of AI effectively
• Learn to do what AI can’t: As you assess AI’s limitations, become good at what AI is bad at. As the article puts it, “Grow your skills in more human-centric areas.”?
• Embrace change: Instead of fighting against change, learn how to grow with it.?

An article from the Wall Street Journal published a few days ago also highlighted the fact that AI isn’t likely to replace too many jobs in the next few years. Many executives are questioning whether the productivity gains from AI are worth the cost of some of the tools.?

However, many hours that humans are currently working are nonetheless likely to be automated in the future.?

According to the article, “The impact on the size of the workforce remains a question. Some companies say they won’t fire existing employees, but they may not need to hire as significantly in the future if software can take on more work. The result is the same: fewer jobs.”?

New AI Findings From Slack Research

Slack published a report earlier this month on the use of AI tools at work.?

The study revealed the following:?

• Use of AI in the workplace increased 24% in the past quarter
• 81% of executives feel pressured to incorporate AI into their organization in some capacity
• As of January 2024, approximately a quarter of desk workers have experimented with AI tools
• Of those who have tried AI tools, 80% say it’s improved productivity
• Despite this, 43% of desk workers say they haven’t received any guidance for using AI tools at work

Based on these findings, it’s clear that while employees and leaders alike are eager to work with generative AI, there’s a disconnect between leadership and employees regarding its use.?

“We Need to Incorporate AI!”

The Slack report highlighted that the majority of executives feel pressure to implement AI tools in their organizations.?

The question, of course, is how this should happen.?

The “bandwagon effect” is a common pitfall that companies might find themselves falling into.?

According to an HBR article written by Harvard Business School’s Tsedal Neeley and University of California, Santa Barbara’s Paul Leonardi, many companies adopted organizational social tools such as Slack and Microsoft Teams because their competitors were doing so, rather than strategically incorporating them. This meant that they often missed out on some of the key innovation and collaboration benefits the tools offered.?

The same holds true for generative AI. Simply “hopping on the bandwagon” isn’t likely to give you a strategic advantage.?

To successfully implement generative AI into your organization, you need to be intentional about leveraging it to create value.

A Framework For Generative AI

One of the top concerns about AI in HR is a lack of skills. Workday reports that 32% of HR leaders are concerned that their HR team won’t have the technical skills to implement AI effectively. 31% are also concerned about HR employees becoming overly dependent on AI technology.

In addition, Gallup research reveals that 14% of employees are concerned that their jobs will be eliminated by AI, and 72% of Fortune 500 CHROs predict that AI will replace jobs in their organization in the next three years.

To address these concerns, it’s important to ensure that AI can be used in a way that doesn’t just benefit the organization as a whole, but your individual employees as well. Effectively leveraging AI can augment your team’s roles, rather than eliminating them.

Developed by Paul Leonadri, the Duca Family Professor of Technology Management at the University of California, Santa Barbara and host of our team experience, Adopting Gen AI, the STEP framework can help your team effectively implement generative AI.

1. Segmentation: Identify the tasks that AI shouldn’t—or isn’t able to—perform, the tasks that AI can accomplish that augment or enhance your team’s activities, and which tasks can be fully automated by AI.
2. Transition: Determine how employees’ roles can be deepened or upgraded because of the time AI has freed up.
3. Education: Equip employees with the knowledge and skills required to effectively leverage AI technology.
4. Performance: Consider how performance evaluations should evolve given the usage of generative AI.

Each of these factors can be personalized to fit your company’s specific needs.

If you’re interested in working with Professor Paul Leonardi and applying this framework to your organization, check out our team experience, Adopting Gen AI. In this live, virtual experience, Paul will work with your team to find ways generative AI can create value for employees and the organization alike.