The AI revolution has the potential to impact up to 300 million jobs, as estimated by Goldman Sachs. In today’s corporate landscape, no position is immune to this transformation, ranging from entry-level tech positions to even the CEO role. Furthermore, AI is set to reshape the future organizational structures, moving away from traditional hierarchical setups towards more agile frameworks with increased task fluidity and skill diversity.
Renée McGowan, the CEO of Marsh McLennan’s India, Middle East, and Africa division, highlighted at Fortune’s Global Forum conference in Abu Dhabi the inevitable shift towards more flexible organizational structures. She emphasized the need for structures that allow for greater adaptability and a dynamic allocation of tasks and skills among employees.
Studies indicate that supervisory roles, such as project managers, are likely to experience more significant displacement from AI compared to their junior counterparts. Interestingly, many employers are inclined to enhance the skills of existing employees rather than seeking new AI talent, a trend that surprised Taso Du Val, the CEO of Toptal.
As AI gradually replaces routine tasks typically assigned to junior staff, leaders must redefine career progression paths for early-career employees. McGowan stressed the importance of identifying the essential skills for career growth and providing exposure to various roles within the organization to align with future leadership or technical requirements.
Companies like ServiceNow are already leveraging generative AI to optimize team performance, identify training needs, and recruit individuals with relevant skills, signaling a shift towards a more strategic approach to workforce management in the era of AI.
The transition necessitates a paradigm shift in how work is approached, focusing on redeployment and reimagining job roles. It underscores the importance of adapting to the evolving nature of work and fostering a culture of continuous learning and skill development.
For more insights from Fortune’s Global Forum, visit their coverage here.
Paige McGlauflin
[email protected]
@paidion
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Ensuring the compliance of return-to-office directives extends beyond the private sector, with the Biden administration intensifying efforts to encourage federal employees to resume office-based work. Despite these initiatives, the administration has yet to achieve its return-to-office targets, as reported by the Wall Street Journal.
Around the Table
A compilation of significant HR news highlights.
- Black women at major U.S. corporations experienced a 50% decline in promotion rates compared to the previous year, significantly lagging behind men of all races, according to McKinsey data cited by the Wall Street Journal. Similar but less pronounced declines were observed among Black men.
- New research from the U.K. government indicates that management consulting professionals will be most affected by AI advancements, followed by individuals in finance, accounting, economics, and psychology, as reported by the Financial Times.
- Nearly half of U.K. employers expressed concerns about the casual attire and grooming habits of their employees, with around one-third either implementing or considering the implementation of dress codes, based on insights from job site Indeed published in WorkLife.
Watercooler
A snapshot of the latest from Fortune.
- Talent grab: Morgan Stanley, Citigroup, and Wells Fargo have poached numerous AI experts from neighboring Wall Street institutions like Goldman Sachs and Bank of America, with some U.S.-based recruits commanding starting salaries exceeding $900,000, according to Bloomberg’s William Shaw.
- City slackers: Bloomberg Intelligence’s findings reveal that a significant proportion of workers in Paris are restricted from remote work, contrasting sharply with the more flexible policies in London. Many London employees would require substantial pay raises to transition back to in-person work, as highlighted by Bloomberg’s Eamon Akil Farhat.
- Leveraging AI: Neurodivergent employees shared their experiences using AI tools like ChatGPT to enhance communication with colleagues and tackle complex assignments more effectively, as covered by Chris Stokel-Walker.
- Remote dreams sink: A company offering a three-year world cruise for remote workers at an annual cost exceeding $30,000 had to cancel the trip due to the unavailability of a suitable vessel, disappointing many eager participants, as reported by Chris Morris.
