Job losses and AI Agents!

Microsoft recently launched the Copilot 365 chat with an Agent Builder that enables users with to build and train AI Agents with ease. All through the media hype for this launch one point that has been consistently called on is the ability to build AI agents that can increase Workflow efficiency by automating repetitive tasks. While it sounds great and exciting for users helping them build reports, generating insights and drafting emails, there is one Big question that hangs uncomfortably in the air.

"What is the impact of optimizing my Workflow using AI on my Workforce?"

We all know what it means when we say we have optimized our Workflow. All tasks included in that Workflow will now take a shorter time to complete with a substantial improvement in the quality of the outputs. The repercussions of this improvement in the workflow is clearly evident on the workforce. A lot lesser people are now required to complete the same task than before. So the Big Elephant in the room that I have been trying to pull out is what will happen to the existing workforce?

These types of disruptive innovations are not something new, and I found the answer to this forward looking question, by looking into the past. On the outset Disruptive Innovations seem to rock the workforce applecart, but over time they resolve into an associated increment that results in up-skilling and cross-skilling of the entire workforce.

Optimizations in the Workflow results in Up-Skilling & Reductions in the Workforce results in Cross-Skilling

Let me explain how...

In the early 1900's the middle class American family was a fast growing consumer market. However in those days the Motor Car, given the scale of manufacturing and time required to build, was prohibitively expensive for this market. On average building a new motor car took around 12 hours of assembly time which was done by a hand full of high paid expert mechanics who were specialized in understanding the specifics of the whole car. In 1908 Henry Ford introduced the Model T. The world's first mass produced car that was cheap and affordable to the common man. At the heart of this innovation was an optimized factory Workflow that broke down the complex job of assembling a car into multiple small repetitive tasks that could be done easily by an army of low paid low skill laborers. Through this innovation Henry Ford was able to bring down the assembly time of a Motor Car from over 12 hrs to under 90 mins per car. This reduction in manufacturing time resulted in a massive savings in expenditure that was passed down to the customer. The older model of employing high skilled automobile experts, who earlier were tasked with assembling an entire car, suddenly fell out of favor for low skilled workers who were easy to train on a specific assembly task. A few older expert employees were made as Assembly Line supervisors to keep a tab on the overall production but most of them were let go.

With this new found extra time the retained assembly line supervisors experimented with newer technologies and designs that helped progress the automobile industry further. They up-skilled themselves in areas which they knew had opportunities to improve and developed new technologies to introduce these new concepts. The momentum provided by this innovation propelled not just the Ford Motor company but the entire motor car industry.

But this is only half the story, you may ask what happened to the remaining expert mechanics who were let go?

The economy was booming at this time and the prospects of cheaper production driven by the economy of scale, forced the now unemployed expert mechanics to relearn and apply their skills across different products. They simply Cross-Skilled themselves to apply their learnings of the assembly line innovation to other manufacturing industries.

I am sure by now you see a similarity in the Ford story with our story. Today AI agents have substituted the assembly line workers, and we are the expert automobile mechanics. And if my prediction of Up-Skilling and Cross-Skilling holds true then the answer to my earlier question on the impact of optimizing the Workflow on the Workforce is clear.

The number of human employees required to execute Jobs will substantially come down due to the Agentic invasion, but there is bound to be a huge explosion of diverse and new Job roles that come into being thanks to the possibilities of AI.

It is inevitable that organizations will favor AI agents for human workers in order to bring down their expenses. After all these workers never ask for leaves and work non stop with consistent quality. Now who wouldn't want that? If you are feeling insecure about your job role due to a high amount of repetitive tasks that an agent can execute quicker and better then its high time you consider Up-Skilling yourself on areas that gives you an edge. It would also help to Cross-Skill yourself in areas that can leverage your existing skills across different domains. So your best bet is to up-skill yourself and be prepared to exploit any new job roles that can leverage your skills across industries.

In the end it was this apparent toppling of the Apple cart of the Expert mechanics that led to the eventual upgradation of the whole manufacturing industry and the birth of brand new industries. In a similar scenario I would not be too surprised if we too will see some cool new innovations take over with us up-skilling and cross-skilling our work force. There could be new industries and new business models that we can't even dream of yet waiting to be born thanks to the forever inquisitive nature of us Human that no AI agent can Optimize! The conditions are ripe for innovation and let's hope history repeats itself.

The Force Is With Us!

#AI #Agentic #Artificial #Intelligence #Agents #Workforce #Workflow #Optimization #UpSkill #CrossSkill #Ford #Automobile #History #Manufacturing #Copilot #Microsoft #agentbuilder #365

PS: As a certified AI consultant with 19 years experience in Marketing, Analytics & AI, I strive to promote Thought Leadership in AI amongst SMBs & explore the power of AI to benefit their business.