World of Work

Opinion: Yes, AI can create a better world of work, if businesses give it the chance

The question is: Will employers fumble this opportunity?
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As generative AI gains steam, critical questions have arisen around the technology’s impact on jobs – namely, which ones it will be replacing.

Frontline and low-wage roles are often the easiest to automate, and consequently the most vulnerable to replacement when new technology emerges. One recent estimate suggests that low-wage jobs in industries like food service are as much as 14 times more likely to be eliminated by AI than other roles.

There is little question that AI will ultimately replace some low-wage jobs. But, at the same time, it has the potential to increase the number of higher-wage, higher-skill positions, and improve job quality for workers across the board. That’s an optimistic vision, and it’s within the realm of possibility – one could even say it’s true to precedent, given that past advancements in technology have often increased both productivity and wages for the jobs they’ve created relative to those they’ve replaced.

But an intelligent, empathetic, worker-centered application of AI is far from a foregone conclusion. As with every other major technological advancement, employers are responsible for shepherding workers through to the other side–hopefully towards a future of work that is both more productive for businesses and more fulfilling for workers.

With that in mind, the question we should be asking isn’t whether AI can be as good for workers as it is for employers. It’s whether companies can step up to the plate and integrate the technology into their systems responsibly.

In many ways, generative AI models like ChatGPT are the culmination of a process of automation that has been in motion since the 1980s. We’ve seen this change ourselves over the course of our careers, as we’ve managed frontline processes in and for companies as diverse as UPS, Ebay, Uber, and Harrah’s Entertainment (which consolidated the casino industry in the 2000s).

Before automation, casinos as large and successful as Caesar’s Palace were pricing rooms manually. Now, AI has reshaped the casino industry from the bottom up: decisions about pricing are handled by automated frontline systems with a sophisticated understanding of consumer behavior.

Wall Street traders, similarly, are no longer shouting into a phone on the floor, but are working instead on a vast, real-time trading system powered by machine learning. Generative AI is just the next iteration of this technology; and, like all other productivity-boosting technologies from the PC to the mobile phone, it has the potential to create new jobs and improve the conditions of existing ones.

Each stage of technological advancement brings potential benefits for workers who can often attain higher-skill, higher paid jobs far more easily. In the case of AI, packing robots won’t get rid of all warehouse workers. It’s just that those workers will be in new roles instead, overseeing fleets of robots, or working as technicians to maintain and repair the new technology.

Anyone will be able to become a technician, regardless of whether or not they hold a degree in computer science: sophisticated AI that can produce useful computer code from a prompt will make software development accessible to anyone who can master effective prompt-writing. AI will democratize programming.

What’s more, the work available in factories will be less strenuous, as physical labor is outsourced to machines. Automating these and other elements of work will both improve productivity and create new career pathways, as employees are free to focus their energy on more sophisticated tasks that affect the company on a wider scale and enable them to master skills that support job mobility.

If our experience is any guide, a world of work that uses AI in all these positive, productivity-boosting ways is possible – and some companies are already realizing this rosy vision for AI’s future. Major companies like DHL have started building so-called “collaborative robots” – stationary robots that require consistent human input to tackle their work (repetitive, labor-intensive processes like sorting packages) effectively. Human workers are necessary to monitor machines like these to ensure production goals are met – a far more interesting, safe, and specialized (and potentially even fun) role than sorting packages one by one as they come in.

But not every company will take the opportunity. Over the course of our career, we’ve seen many employers who were afraid to automate. Caesar’s refused to move to an automated system; Harrah’s Entertainment, which did embrace the shift toward machine learning, eventually acquired it. Blockbuster, Sears, JCPenney, Kmart – these and other well-known, formerly successful brands are now playing catch-up because they were too intimidated to embrace the next wave of change. In every case, those who didn’t innovate paid the cost, both in terms of employee retention and their bottom line.

Artificial intelligence, like every other major tech innovation, cannot and will not be stopped. Businesses have an imperative to leverage the technology both for efficiency and to improve job conditions and quality.

The question, then, is not whether or not AI will reshape the workforce, or create new, high quality jobs – the question is whether companies will fumble this opportunity.

There’s no question that change is hard, but those companies that don’t adapt will find themselves as easily replaced as Blockbuster has been by Netflix. In the age of generative AI, we’re seeing the same story play out. Will companies be ready to meet the moment, or will they watch it pass them by?

Todd Lewis is vice president of Prologis Ventures. Jason Radisson is CEO & founder of Movo.

Dana Beth Ardi

Executive Committee

Dana Beth Ardi, PhD, Executive Committee, is a thought leader and expert in the fields of executive search, talent management, organizational design, assessment, leadership and coaching. As an innovator in the human capital movement, Ardi creates enhanced value in companies by matching the most sought after talent with the best opportunities. Ardi coaches boards and investors on the art and science of building high caliber management teams. She provides them with the necessary skills to seek out and attract top-level management, to design the ideal organizational architectures and to deploy people against strategy. Ardi unearths the way a business works and the most effective way for people to work in them.

Ardi is an experienced business executive and senior consultant who leverages business organizational transformation through talent strategies. She uses her knowledge and experience to develop talent strategies to enhance revenue and profit contributions. She has a deep expertise in change management and organizational effectiveness and has designed and built high performance cultures. Ardi has significant experience in mergers, acquisitions, divestitures, IPO’s and turnarounds.

Ardi is an expert on the multi-generational workforce. She understands the four intersecting generations of workers coming together in contemporary companies, each with their own mindsets, leadership and communications styles, values and motivations. Ardi is sought after to assist companies manage and thrive by bringing the generations together. Her book, Fall of the Alphas: How Beta Leaders Win Through Connection, Collaboration and Influence, will be published by St. Martin’s Press. The book reflects Ardi’s deep expertise in understanding organizations and our changing society. It focuses on building a winning culture, how companies must grow and evolve, and how talent influences and shapes communities of work. This is what she has coined “Corporate Anthropology.” It is a playbook on how modern companies must meet challenges – culturally, globally, digitally, across genders and generations.

Ardi is currently the Managing Director and Founder of Corporate Anthropology Advisors, LLC, a consulting company that provides human capital advisory and innovative solutions to companies building value through people. Corporate Anthropology works with organizations, their cultures, the way they grow and develop, and the people who are responsible for forming their communities of work.

Prior to her position at Corporate Anthropology Advisors, Ardi served as a Partner/Managing Director at the private equity firms CCMP Capital and JPMorgan Partners. She was a partner at Flatiron Partners, a venture capital firm working with early state companies where she pioneered the human capital role within an investment portfolio.

Ardi holds a BS from the State University of New York at Buffalo as well as a Masters degree and PhD from Boston College. She started her career as professor at the Graduate Center at Fordham University in New York.