Every year, following the enlightening whirlwind that is the Annual Meeting of the World Economic Forum (WEF) at Davos, I take a moment to contemplate the emerging themes of the week. Last year, the focus was on the radical reevaluation of how we perceive work and employment — a concept we termed “Work’s Great Reboot.”
This year, the rapid transformation has been accelerated by the wave of generative AI (gen AI), sparking both enthusiasm and profound concerns as leaders strive to comprehend and brace for its effects on work, workforce, and society at large. Surpassing issues like climate change, geopolitical turmoil, and last year’s trending topic — crypto — gen AI emerged as the dominant subject at this year’s annual meeting, notably at the 9th annual Mercer/Oliver Wyman Forum breakfast, Tapping AI’s Power to Optimize Our Working World, in Davos.
Tracing the swift ascent of gen AI
The latest report from the Oliver Wyman Forum, How Generative AI is Transforming Business and Society, illustrates a remarkable pace of adoption. Within a year, 55% of the global population has integrated gen AI into their professional lives. Notably, ChatGPT achieved widespread adoption in just ten months, outpacing the adoption rates of the internet (17 years), smartphones (21 years), and electricity (37 years).
While this rapid uptake spans regions, industries, and job functions, it does not automatically translate to increased productivity. Surprisingly, only 61% of survey participants reported enhanced productivity through gen AI utilization.
The study also highlights a significant disparity between the optimism of CEOs, with 69% recognizing the broad advantages of gen AI, and the concerns of employees, as 59% fear potential job displacement.
This apprehension is not unfounded, as research from the World Economic Forum indicates:
- 75% of surveyed companies anticipate AI adoption.
- 50% foresee AI fostering job growth, while 25% anticipate job losses.
- Employers predict that 44% of workers’ skills will undergo disruption within five years.
- Six out of ten workers will necessitate training by 2027, yet only half currently have access to adequate training opportunities.
Adopting a human-centered approach to automation is crucial for leveraging the benefits of AI sustainably and inclusively, thereby reducing inequality. The WEF’s Good Work Framework serves as a foundational step towards redefining the human-machine relationship.
Fostering human-machine collaboration
The convergence of human and machine intelligence, and the potential productivity gains thereof, resonated deeply with our panel at the aforementioned breakfast event. Deb Cupp, CEO of Microsoft Americas, highlighted the transformative breakthroughs that have brought humans and gen AI closer, democratizing technology that was once exclusive to experts.
Deb remarked, “What excites me is that frontline workers are identifying the best use cases. While executives may have the intention, the genuine use cases are originating from those directly involved in the work.”
Tanuj Kapilashrami, Chief HR Officer of Standard Chartered Bank, emphasized gen AI’s potential to “enhance performance, productivity, and the overall work experience.” Despite looming uncertainties, she noted that “as machines excel at being machines, humans can excel at being humans.”
Democratizing access to technology
A key advantage of gen AI is its role in democratizing AI access through natural language interfaces. Dan Vahdat, CEO of Huma Therapeutics, underscored the transformative potential of widespread gen AI adoption. Highlighting its egalitarian nature, Dan argued that gen AI is narrowing socio-economic disparities, asserting that it represents a significant advancement akin to the advent of the internet.
Navigating the complexities of gen AI
The dual nature of gen AI, with its inherent contradictions, emerged as a significant theme. Huma Therapeutics identified a potential 10x increase in time-saving for healthcare professionals through gen AI — a substantial leap in healthcare productivity and efficiency.
However, Ana Kreacic, Chief Knowledge Officer at Oliver Wyman, cautioned that historically, productivity gains have primarily favored companies over workers. She remarked, “While workers may desire more leisure time, historical trends indicate that productivity gains tend to benefit employers.”
Skill development for the gen AI era
The rapid evolution of gen AI is reshaping not just how we work, but also catalyzing a shift from job-centric to skill-centric models within organizations. By delving into the core activities and tasks beyond specific roles, organizations can identify areas for substitution, augmentation, and transformation.
The integration of gen AI necessitates skills that may not currently be prevalent. Ana highlighted, “40% of executives acknowledge the need for workforce training or retraining. However, 98% of employees are demanding more. The disparity is substantial, underscoring the imperative for companies to do more.”
The forthcoming Mercer Global Talent Trends 2024 study reinforces this point, revealing that only 45% of employees trust their organizations to provide the necessary skills in the event of job changes due to AI and automation.
Tanuj emphasized the importance of starting with skills, stating, “While job disruptions are inevitable, companies have a unique opportunity to transition from job-based to skill-based perspectives. Shifting the focus from jobs to skills could herald an exciting era for workforces worldwide.”
Reimagining work in the age of gen AI
Azeem Azhar, CEO of Exponential View, cautioned that the era of gen AI is already upon us, with a narrow window remaining before technology operates independently of human intervention. The panelists agreed on the critical need for companies to proactively redesign work processes to accommodate gen AI, rather than leaving employees to navigate these changes alone. The rapid pace of change necessitates organizations to embed learning and well-being opportunities into work routines, rather than placing the burden solely on employees to ensure their ongoing relevance in an evolving work landscape.
Preparing a workforce for the future
As highlighted during the panel discussion, the swift adoption of gen AI witnessed over the past year is merely the beginning. With over 75% of companies eyeing the integration of these technologies in the next five years, it is imperative to overhaul work models to guide customers, employees, and communities towards an inclusive and equitable future of work that harmonizes economic viability with empathy. Achieving this equilibrium is non-negotiable in the era of gen AI, and striking this balance will pave the way for a workforce that is primed for the forthcoming evolution in work dynamics.
For a more in-depth perspective on this crucial and timely dialogue, we invite you to view the event highlight video.
