Artificial Intelligence at Work: Momentum Grows, But Gaps Remain
The following contribution comes from the BCG (Boston Consulting Group) website.
The authors are:
Vinciane Beauchene, Managing Director and Partner, Paris
Sylvain Duranton, Managing Director and Senior Partner, Global Leader, BCG X, Paris
Nipun Kalra, India Leader, BCG X, Mumbai
David Martin, Managing Director and Senior Partner, Global Leader of People and Organization, Dallas
AI is no longer a distant promise. Leaders and managers have integrated it into their daily work routines. However, frontline employees have not fully embraced it.
While more than three-quarters of leaders and managers report using generative AI (GenAI) several times a week, its regular use among frontline employees has stagnated at 51%.
This gap emerges at a crucial moment for the development of AI. Companies are realizing that simply introducing AI tools into their existing work methods isn’t enough to unlock their full potential. True transformation—and the value it generates—occurs when companies go further and redesign their workflows from start to finish.
Redesigning Work
Half of all companies, primarily those in financial services and technology, are moving beyond productivity strategies (Implementation) to redesign workflows (Restructuring).
These findings come from BCG’s annual global survey on AI at Work, conducted with employees. (This year’s survey covers 11 countries and regions and more than 10,600 leaders, managers, and frontline employees.)
Bridging the Frontline Adoption Gap
Companies’ ability to restructure workflows depends heavily on the engagement of frontline employees. The survey suggests ways companies can help these employees overcome the limitations of AI.
Provide Leadership Support
When leaders demonstrate strong support for AI, frontline employees are more likely to use it regularly, enjoy their work, and feel satisfied with their career path.
For example, the percentage of employees who have a positive opinion about GenAI increases from 15% to 55% with strong leadership support. Only about a quarter of frontline employees report receiving such support.
Provide the Right Tools
When employees lack the AI tools they need, more than half say they will seek out and use alternatives anyway. This leads to frustration, security risks, and fragmentation. efforts.
Provide adequate training.
When companies train their employees in AI, they are more likely to become regular users and trust the technology.
Regular usage is considerably higher among employees who receive at least five hours of training and have access to in-person training and mentoring.
Only one-third of employees report having received adequate training.
Benefits of Workflow Restructuring
Companies that actively restructure their workflows with AI benefit in many ways that generate value for the organization. Their employees save significantly more time than those in companies where the technology is less integrated into the workday. Furthermore, employees’ decision-making becomes sharper, and they work on more strategic tasks.
These results don’t happen by chance. Companies undergoing restructuring are better at tracking the value created by AI. They dedicate more time to training their employees, and these employees are more likely to report that their leaders support them.
However, this transformation is not without its challenges.
Employees in organizations undergoing a comprehensive AI-driven redesign are more concerned about job security (46%) than those in less advanced companies (34%). And leaders and managers (43%) are much more likely to worry about losing their jobs in the next ten years than frontline employees (36%).
In other words, the work to allay employee fears is ongoing. Appropriate training and skills development can help reduce employee concerns.
AI Agents
AI Agents: Their Implementation Has Not Yet Reached Its Potential
AI agents—intelligent digital assistants capable of learning, reasoning, and independently managing complex tasks—have generated considerable excitement.
However, the survey reveals that they are still in their infancy. Only 13% of employees perceive them as deeply integrated into their daily workflows. Barely a third of employees understand how these sophisticated tools work. Interestingly, when workers are well-informed and familiar with AI agents, apprehension transforms into enthusiasm. Employees begin to see them less as threats and more as collaborative partners that enhance their work.
What does the future hold for AI in the workplace?
The survey reveals companies’ progress in introducing and integrating AI. But it also exposes concerns, primarily about job security.
As in the past year, the survey reveals that the more employees use AI, the greater their concerns become. This represents a familiar challenge in other technological transitions, notably from steam to electric power.
The path from AI adoption to impact is fundamentally about redefining collaboration between people and machines.
Companies committed to this transformation understand that the true power of AI lies in smarter ways of working. When implemented correctly, employees not only adapt but thrive. Here’s how to get started:
Stop underestimating the importance of training. Invest in the appropriate levels of time, resources, and leadership support.
Measure the value you generate with AI through improvements in productivity, quality, and employee satisfaction.
Invest in your people to redefine workflows and leverage the value of AI. Anticipate the technology’s impact on work, employees, and the workforce. Develop training and reskilling capabilities to support AI implementation.
Rigorous experimentation with agents to accelerate the learning curve. Monitor the impact and potential risks through A/B testing.
The Human Factor Remains Essential: The Future of Work in an AI-Driven World
The following contribution comes from the Korn Ferry website, which defines itself as follows: Korn Ferry is a global consultancy that drives performance. We unlock the potential of your team and unleash transformation across your enterprise, synchronizing strategy, operations, and talent to accelerate performance, drive growth, and inspire a legacy of change. That’s why the world’s most innovative companies in all major sectors trust us: because of our shared commitment to lasting impact and the bold ambition to Go Further.
The author is Jean-Marc Laouchez, President of The Korn Ferry Institute, New York (North America).
A new Korn Ferry survey offers valuable insights into the impact of AI on the future of work and human capital.
In today’s world, artificial intelligence (AI) stands as a major catalyst for change, transforming the landscape of business operations and the future of work. More and more CEOs are recognizing the potential of AI to boost internal productivity and operational efficiency.
While the AI market is relatively young, its growth trajectory promises a paradigm shift in business models and strategies. However, within this transformation, humans continue to play a fundamental role.
As with any emerging technology, AI is a disruptive force that, in many ways, will revolutionize the market. But one thing remains constant: the difference between success and irrelevance lies in an organization’s ability to adapt to change.
240 CEOs surveyed
To better understand how leaders are preparing for digital transformation, Korn Ferry surveyed more than 240 CEOs and senior executives from medium-sized and large companies around the world.
Thanks to their responses, we now have not only a clearer view of AI’s impact on the future of work, but also of whether organizations are prepared for the changes ahead. And more importantly, we were able to gain valuable insights into how AI will affect human capital: Will people still matter, or will automation leave them jobless?
Let’s see what these leaders had to say.
The digital transformation of businesses is inevitable.
Over the next 12 to 24 months, we anticipate that CEOs will focus significantly on integrating AI solutions to boost performance and reduce operating expenses.
While AI is still in its early stages, and most companies are considering or testing the technology, we see strong indications that its integration will soon become a strategic necessity, rather than a novelty.
In fact, more than 82% of the CEOs and senior managers surveyed believe that AI will have a significant impact on their businesses, and 73% are closely monitoring the technology for potential negative effects on their companies.
As a result, companies are making structural and operational changes to adapt to the advancements in AI. Many of these changes are occurring at the business line level or through cross-functional teams.
Given that a large majority of CEOs and senior executives plan to increase their investment in AI-related strategies by up to 50%, it is clear that AI integration is shifting from a peripheral consideration to the core of business strategy.
Furthermore, over 33% of the senior executives surveyed say they are already experimenting with ways to leverage AI to boost productivity and operational efficiency.
On the other hand, a quarter indicate that they are heavily focused on integrating AI into their products and services to achieve a better market position against the competition.
The Role of Humans in the Future of AI
Even as AI becomes a formidable force in business, humans will continue to play a fundamental role.
There is a consensus among CEOs that, while AI will automate many tasks, humans will continue to play a fundamental role in decision-making based on the information provided by AI; more than 37% of senior executives surveyed believe that there will be collaboration between people and AI in the future.
Therefore, the focus is shifting from performing routine tasks to leveraging human cognitive capabilities for decision-making, strategic planning, and creative thinking.
However, this transition is not without its challenges. Most CEOs agree that their workforce is not fully prepared for the integration of AI, suggesting the need for significant training and reskilling initiatives.
Almost 44% of respondents believe that employees will need to develop new skills to thrive in the AI-driven business environment.
The integration of AI also requires a meta-competency for change management, learning agility, and adaptability.
This meta-competency, inherent in human beings, allows employees to adapt to new contextual situations through skills such as emotional intelligence, trust building, and empathy.
Bridging the Transformation Gap
Despite the clear need to prepare the workforce, many CEOs lack specific plans to help employees adapt to AI.
When asked what the biggest obstacle to AI integration was, 40% of respondents cited a lack of AI-related knowledge and skills in their HR team, while approximately 13% pointed to employee resistance to change management issues.
Another 27% stated they were unsure. Given these figures, the primary focus should now be on planning and implementing an effective transformation program that reduces the gap between leading a company prepared for change and one that doubts its ability to survive this level of disruption.
Lack of Preparedness to Integrate AI
While leaders recognize the potential and benefits of AI, their uncertainty reflects a lack of preparedness within their organizations to fully integrate it. Overcoming this gap requires concerted efforts in staff training, fostering an AI-friendly culture, and developing integration strategies.
A transformation program must encompass not only technical training but also the ability to leverage AI tools for strategic planning, decision-making, and creativity.
It is crucial to foster an organizational culture that views AI as a collaborator, not a competitor. This means promoting a mindset where AI is seen as a tool that enhances human capabilities, freeing up time for higher-value tasks.
AI and Humans: Collaborators in a New World
The rise of AI in business is imminent and unstoppable. After all, AI promises immense potential for business growth, efficiency, and innovation.
But it is essential to remember that AI and humans do not compete in this new world; rather, they are key collaborators. Humans will continue to play an indispensable role in the workplace, applying their unique cognitive abilities to enhance AI capabilities.
As companies move forward on their journey to AI integration, they must focus on developing comprehensive strategies that encompass this integration, workforce training, and the creation of an AI-friendly culture. Together, humans and AI can redefine the future of work and ensure success in an AI-driven world.
Learn more about Korn Ferry’s business transformation capabilities.
The Future of Work Remains Ultimately Human
The following contribution comes from the “Global Network for Advanced Management” portal.
The author is Gong Yaping, Professor and Director of the Department of Management at the HKUST Business School.
The development of increasingly sophisticated artificial intelligence raises many questions for both employers and employees, but the future of work is ultimately human, says Gong Yaping of the HKUST Business School.
Almost daily, the media refers to buzzwords like Artificial Intelligence (AI), machine learning, and other 21st-century technologies. AI refers to machines capable of performing tasks intelligently.
In machine learning, we allow machines to access data and learn on their own. These emerging technologies generate excitement and unease, hopes and fears, and will create winners and losers.
Both academics and practitioners are curious about the future of work in a world of AI,
machine learning, big data, and digital technology.
However, predictions about the future are often inaccurate and frequently simply wrong. Therefore, I will not venture to make predictions.
Instead, I will raise potential implications and questions in the field of human resources and labor relations to encourage discussion.
What will emerging technologies mean for skills and competency requirements?
Some technologies will devalue certain skills and competencies (e.g., physical skills, logical reasoning, and rule-based decision-making), while others will increase the demand for specific areas (such as emotional intelligence, foresight, and creativity). We must move up the pyramid of human skills and competencies to compete in the new world.
Emotional Intelligence
Will AI possess human emotions and emotional intelligence? I think not, and I don’t believe it will.
AI enthusiasts want to create an AI with emotional capabilities, but so far their success has been very limited. If AI were to come to dominate the future of work, empathy would remain the last human trait to endure in the workplace.
Human beings are empathetic and caring, and we don’t act solely based on cold data and logic.
Research shows that emotions can promote ethical decision-making.
AI is limited precisely by its lack of human emotions.
Research shows that general mental ability, or intelligence quotient (IQ), has the strongest predictive validity for job performance.
Will emotional intelligence become a key competitive advantage in the future era of AI and robotics?
Once intellectual ski