Over the last couple of years, there have been significant jumps in AI capabilities, compelling many organizations to integrate it into their systems to avoid falling behind competitors. However, adopting AI merely for the sake of it can have negative both short-term and long-term negative consequences. Organizations need to develop a values-driven, human-centered strategy when incorporating AI into their operations, paying close attention to its impact on worker capabilities, organizational values, and who receives the benefits created by increased productivity.
Will AI Augment, Replace, or Redefine Workers?
Jesuthasan and Boudreau detail in their works, "Reinventing Jobs" and "Work Without Jobs," that replacing workers with AI doesn't always go as expected. Sometimes, replacing human workers can lead to inefficiencies, necessitating the hiring of different human workers in supportive roles. In "Work Without Jobs," they describe how a warehouse underwent several changes before finding the right balance with automated robots. Without a clear solution and the flexibility to move beyond traditional job roles, AI implementation could negatively affect operations. Moreover, too many changes could lead to "change burnout" among even the most resilient employees. Proper implementation requires organizations to critically assess their core functions and determine where and how AI can be sensibly integrated.
How Does Implementing AI Align with Organizational Values?
An organization's values act as a social contract, guiding the behavior and goals of its staff and leadership. When introducing AI, leaders must articulate how its integration aligns with these values. If a core value is ownership or acting like an owner, AI implementation should be viewed with a long-term perspective. Leaders should consider how AI will strengthen the organization and impact the experiences of employees, customers, and the community, both positively and negatively. For instance, if AI leads to significant layoffs in the local community, it's important to consider the community's reaction and how it will affect remaining employees' performance. Similarly, if an organization values diversity & inclusion, AI tools and their implementations should be examined for potential biases and negative disproportionate impacts on specific employee or customer groups. For example, if an AI tool uses facial or voice recognition for systems access, organizations should ensure that it works effectively for all demographics regardless of skin tone or vocal abilities.
Who Benefits from the Increased Production Brought by AI?
This is probably the most controversial item on this list, but it's essential to consider who ultimately benefits from AI implementation. Will it be the shareholders, upper-level leadership, staff, or a mix? Employees today seek greater transparency from their employers, and there's been backlash in cases where layoffs occur while senior leaders receive bonuses, or stock prices surge following buybacks funded by government aid. As AI makes employees significantly more effective, organizations must be transparent about how they intend to distribute the gains from increased productivity. Will employees will see salary increases, bonuses, or will the benefits from their labor be distributed to senior leadership and shareholders, as has been the case with past technological advancements. If a significant share of benefits will go back to the employees, the rationale must be communicated to shareholders. Conversely, if the majority of gains will go to senior leaders or shareholders, organizations owe workers an explanation. Moreover, with AI lowering barriers to entry in some industries, additional competition may arise, making transparency and fairness even more critical.
Navigating the integration of AI into the workplace will significantly alter how work is done. By addressing the questions above with a defined strategy, organizations can ensure their AI integrations are successful and beneficial to all stakeholders.
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