If amidst the overwhelming influx of AI advice, you find it challenging to gather your thoughts, brace yourself for an even more revolutionary wave approaching swiftly. As a leader, every moment of delay in strategically mobilizing your workforce places you at a disadvantage. We present a proposition to address this imminent shift.
The foresight shared by Ravi Mhatre, a prominent global investor and co-founder of Lightspeed Venture Partners, sheds light on the imminent changes. Presently, AI necessitates human guidance in its operations. However, the future holds “agentic AI,” capable of executing complex tasks with minimal human intervention. When coupled with the potent processing capabilities of quantum computing, a profound transformation ensues, notably impacting our workforce dynamics.
Mhatre articulated, “Artificial intelligence has reached a critical juncture where the automation of human cognition will significantly reshape the world.” He further emphasized, “Agentic AI will streamline cognitive functions akin to how the industrial revolution automated manual labor and the computer revolution enhanced productivity. These are monumental transitional phases, and the current one is progressing at an accelerated pace, anticipated within the next five to six years.”
In the subsequent sections, we aim to elucidate forthcoming developments that left me astounded and are poised to evoke a similar reaction in you. Additionally, we will provide a roadmap to navigate this transformative shift both at an individual and organizational level. Our journey is just commencing, with a planned gathering of CIOs and CHROs in Vancouver on April 15, convened to delve deeper into this subject alongside eminent experts in AI and human capital.
Magnitude and Immediacy of the Transformation
Reflecting on enterprise readiness, Ravi prompted a crucial question. A notable instance surfaced where a president of a large corporation halted AI exploration due to the chaotic nature of operations. The apprehension of the CIO regarding the rampant technological proliferation further accentuated the dilemma. The remedy lies not in isolation but in collective action, harnessing a diverse and inclusive crowd to drive substantial and innovative changes. The focus should shift from disorder to organized crowdsourcing. The pertinent inquiry is not about leadership hierarchy but about engaged leaders willing to embrace inclusive change management.
For individuals in roles such as CIO, CHRO, or CFO, collaboration with forward-thinking peers is imperative to navigate the current landscape of generative AI and the impending era of agentic AI. This collaborative approach demands cohesive teamwork; failure to do so risks lagging behind in the competitive arena.
Noteworthy advancements are already visible, with companies implementing “lights out manufacturing,” where robots autonomously conduct operations while humans oversee the process. Sectors like software development are projected to witness a substantial reduction in engineering staff by 80%, necessitating the recruitment of systems designers with distinct proficiencies. Similarly, the entertainment industry, particularly TV and movies, is poised to leverage digital actors indistinguishable from human counterparts, thereby diminishing the reliance on traditional makeup artists.
Mhatre highlighted the potential for AI and robotics to venture into surgical procedures, with current capabilities enabling swift identification of medical conditions like cancer. Conversely, the conventional timeline for drug development spanning three to six years from discovery to pre-clinical trials can be compressed to a mere three to six months through generative AI. Future systems integrating quantum technology and AI might expedite this process to mere minutes.
While traditional digitization yielded incremental gains, AI promises exponential advancements. The rapid pace of innovation will inevitably segregate winners from losers, with a significant portion of the global populace struggling to keep pace with the evolving landscape.
Tasks such as predicting consumer demand, supplier evaluation, contract negotiation, and performance tracking can be seamlessly delegated to AI, as envisioned by Suketu Gandhi from Kearney. An AI-driven transportation network holds the potential to operate autonomous vehicles, optimize fleet management, enhance loading processes, and streamline delivery schedules. Although certain domains like product design may witness an uptick in employment opportunities, routine tasks are susceptible to automation, prompting companies to potentially reduce their workforce by 20% to 30% over the next three to five years, as estimated by Kearney.
Implications for the Workforce of Tomorrow
For professionals engaged in HR, training, or talent management within their organizations, the impending AI revolution is poised to revolutionize their domain. A prominent study by Goldman Sachs forecasts that nearly two-thirds of job roles in the U.S. will undergo some form of automation, with AI expected to assume a quarter of current responsibilities on average. Occupations in legal and administrative realms face heightened vulnerability to automation, a trend accentuated by the integration of agentic AI and quantum computing in the near future.
At a macro level, this paradigm shift necessitates substantial workforce restructuring, entailing layoffs, extensive retraining initiatives, and recruitment drives targeting individuals with diverse skill sets.
Mhatre emphasized the continued relevance of human involvement in organizational operations, particularly in cognitive tasks that constitute a significant portion of workforce activities now automatable by computers.
Charting the Course Ahead
The imperative to forge ahead is unequivocal, underscoring the urgency for proactive measures. Embracing a collective approach that engages the entire workforce in AI experimentation is pivotal to charting a course towards the future. Leadership in this context transcends traditional notions of control, pivoting towards fostering a culture of exploration, celebrating achievements, and embracing iterative learning from failures.
Outlined below is a suggested roadmap to harness the collective potential within the organization:
- Initiating a Movement: Commence with an open invitation for all employees to participate in AI experimentation, shifting the focus from anticipating AI’s impact to exploring its potential contributions. Monthly virtual meetings can facilitate cross-functional collaboration and knowledge sharing in an asynchronous setting.
- Progress Review Sessions: Individuals or groups are allotted five minutes to present their advancements on a single-page summary, encompassing key learnings, success metrics, challenges faced, and the roadmap for the ensuing month. Subsequent to each presentation, peers provide feedback, fostering a culture of constructive critique and shared learning.
- Executive Deliberations: A designated group of executives engages in macro-level discussions post the presentation sessions, elucidating overarching themes, addressing concerns, and identifying strategic opportunities for organizational alignment. These deliberations navigate complex questions pertaining to HR policies, financial modeling, technological implications, and tool integration.
- Iterative Approach: The cyclical nature of this process advocates for recurring monthly or quarterly sprints to keep pace with the rapid technological advancements and organizational transformations.
In essence, navigating the AI landscape necessitates a collaborative endeavor involving the entire C-suite, including the CIO, CHRO, CFO, and GC. The multifaceted implications of AI underscore the indispensability of collective expertise and collaborative efforts to effectively navigate this transformative era.
