Generative AI's Role in Human Resource Value

Incisive piece by the The New York Times Steve Lohr on first of its kind research by The Burning Glass Institute and SHRM on the likely impact of Generative AI on employment. Initial analyses, including our hear at Harvard Business School Project on Managing the Future of Work have identified important a number of likely outcomes. This report drills down deep, confirming many of those hypotheses. The core of the report is The Burning Glass Institute identifying the 200 occupations that are most likely to be affected by Generative AI (GAI). It isn't going to wipe out jobs wholesale. GAI will displace some tasks altogether and speedup others. It will make people more productive-- a huge boon to the U.S. economy, given lackluster productivity growth in recent years. That productivity growth will lead to companies reducing their staff or hiring needs. The biggest impact will be on classic, white collar jobs-- marketers, business and financial analysts, supply chain managers and purchasing agents, auditors, attorneys, etc. Industries will be affected asymmetrically with professional services, banking and tech. In some industries that will be less affected, specific competitors may be more vulnerable. A retailer like Tiffany's might only restructure marginally; a retailer like Williams-Sonoma with a significant web presence much more so. So, what should executives do? One, develop a strategy. Huge value is on the table and, if your competitors get out in front of you, the consequences will be significant. Companies that slide down the learning curve faster have the prospect of gaining a significant, even insurmountable data-drive advantage. Two, start demystifying GAI for your workforce. Too many companies are holding their cards close to their vests. Left to their own imaginations, workers are increasingly likely anxious and skeptical. That will undermine future reskilling initiatives. Three, start thinking about future job design. If GAI is going to unburden many white collar workers of 40%, 50%, even 60% of their current tasks, what should they be directed to do. What upskilling or reskilling should we be undertaking? How should job descriptions change? What about incentives and metrics? Start probing these questions now, don't wait and find yourself trying to change the engines on the plane while you're flying at 30,000 ft. Four, use tools like this to evaluate your organization's current design. How much disruption is coming your way? How can you start preparing for it now, such as reining in hiring for positions that are likely to be substantially transformed in the next year or two. Five, revisit your talent pipeline strategies. Where will the talent you need in the GAI world come from? Seems implausible that your talent suppliers from the pre-GAI world will all be perfect fits for the what's coming. #artificialintelligence #workforcetransformation #generativeai

I find it interesting that a firm like Deloitte is turning to AI to solve “hard problems.” This year has presented it with a challenging paradox: while it hired several graduates to meet growing demands, it also downsized existing staff. Thus, despite engaging 130,000 new employees this year, Deloitte has notified its US and UK employees about the potential redundancy of their roles. A HR nightmare. Consequently, Deloitte has chosen to leverage AI to evaluate the skills of its employees and reassign them to more promising areas within the company. The primary objective is to shift individuals from less active areas to roles that are currently in high demand. This initiative goes beyond merely preventing large-scale layoffs; it also encompasses a recalibration of future hiring plans. In an era where automation poses a threat to certain jobs and skills, Deloitte sees a silver lining—AI can be a valuable tool in facilitating the transition of workers to more sought-after roles. By leveraging generative AI, popularized by ChatGPT, it hopes to enhance the management of its large workforce. However, while Deloitte's use of AI appears innovative, there are potential challenges and risks that could lead to unintended consequences: 1. 𝐁𝐢𝐚𝐬 𝐢𝐧 𝐀𝐈 𝐀𝐬𝐬𝐞𝐬𝐬𝐦𝐞𝐧𝐭𝐬: If the algorithms used for skills assessments are not properly calibrated or incorporate biases, there is a risk of unfair evaluations. This can lead to employees being assigned to roles that don't align with their skills. 2. 𝐋𝐚𝐜𝐤 𝐨𝐟 𝐇𝐮𝐦𝐚𝐧 𝐓𝐨𝐮𝐜𝐡: Overreliance on AI for workforce decisions may lead to a perceived lack of human empathy. Employees may feel their unique skills, experiences, and aspirations are not adequately considered in the reshuffling process. 3. 𝐏𝐫𝐢𝐯𝐚𝐜𝐲 𝐂𝐨𝐧𝐜𝐞𝐫𝐧𝐬: AI assessments involve the collection and analysis of large amounts of employee data. If not handled carefully, this could raise privacy concerns, potentially leading to trust issues and legal challenges. 4. 𝐎𝐯𝐞𝐫𝐞𝐦𝐩𝐡𝐚𝐬𝐢𝐬 𝐨𝐧 𝐀𝐮𝐭𝐨𝐦𝐚𝐭𝐢𝐨𝐧: An overemphasis on automation might neglect human intuition, creativity, and emotional intelligence in certain roles. This could impact the overall dynamics and effectiveness of the workforce. 5. 𝐌𝐢𝐬𝐦𝐚𝐭𝐜𝐡 𝐢𝐧 𝐩𝐫𝐞𝐝𝐢𝐜𝐭𝐞𝐝 𝐚𝐧𝐝 𝐚𝐜𝐭𝐮𝐚𝐥 𝐬𝐤𝐢𝐥𝐥 𝐝𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭: If the AI's predictions are inaccurate or if the business landscape shifts unexpectedly, there is a risk of a mismatch between the predicted skills needed and the actual skills developed, leading to inefficiencies. Clearly, the approach of relegating intricate problems to AI without a nuanced understanding can be fraught with risks. In the case of workforce restructuring, a thoughtful and strategic integration of AI is essential to ensuring successful outcomes. Nevertheless, it can be said that Deloitte's response to these challenges by utilising AI reflects a forward-thinking approach to workforce management.

In the US yesterday, the latest #jolts report was released. While there seems to be so much hiring around #genai, the number of #jobs openings was the lowest it has been in the last 2+ years. A few takeaways in my opinion about this report in the #ai era: The #labor market is undergoing a significant transformation, driven by technological advancements and changing economic conditions. Generative AI (GenAI), a rapidly evolving field of #ai, is poised to play a pivotal role in shaping the #futureofwork, impacting both job opportunities and how we work. Key Takeaways: 1) The labor market is cooling, with job openings falling to their lowest level since March 2021. This trend may continue as #GenAI automates certain tasks and processes, displacing some workers and creating new opportunities in others. 2) Despite the decline, the labor market remains healthy overall, with low unemployment rates and steady #hiring. GenAI could contribute to this resilience by augmenting human capabilities and creating new industries. 3) The Fed's rate hikes may be nearing an end as the labor market shows signs of cooling. GenAI's impact on productivity and economic growth could influence future monetary policy decisions. Actionable Insights for HR Professionals: 1. Reassess Hiring Needs (Value: Cost Savings) Carefully evaluate staffing requirements to ensure alignment with current and future market conditions. GenAI could automate certain tasks, reducing the need for certain positions and potentially creating new ones. 2. Prioritize #Retention and #Upskilling (Value: Enhanced Productivity, Stronger Employer Brand) Invest in employee engagement, development, and recognition programs to foster a loyal and engaged workforce. Equip employees with the skills necessary to thrive in a GenAI-driven labor market through upskilling and reskilling initiatives. 3. Embrace GenAI for #TalentAcquisition and Management (Value: Enhanced Efficiency and Talent Acquisition) Leverage GenAI tools to streamline recruitment processes, identify top talent, and enhance employee engagement. GenAI can assist in analyzing resumes, conducting background checks, and providing personalized training recommendations. 4. Cultivate a GenAI-ready Workforce (Value: Future-proofed Workforce) Foster a culture of #innovation and adaptability to prepare employees for the changing demands of the GenAI-driven workplace. Encourage continuous learning, experimentation, and collaboration to embrace the future of work. The #job and #labor market will go through massive shifts due to the availability of #ai and enhanced capabilities in 2024. Keep watching this and make sure you evaluate your #strategy on a monthly basis as this market is evolving so rapidly. #HRProfessionals #LaborMarket #TalentManagement #EmployeeRetention #GenerativeAI Mercer Mercer US Boncho Bonchev Ravin Jesuthasan, CFA, FRSA

Generative AI in HR: A Reality Check The buzz around generative AI, like ChatGPT, has been unmissable. But when HR pros put it to the test, the results were eye-opening. Real-World HR Tests: AI vs Human Insight In one corner, Mineral's HR experts. In the other, ChatGPT's AI. The mission? Tackle complex HR and compliance queries. The outcome? A revealing look into AI's strengths and its limitations. Experiment 1: ChatGPT on Trial ChatGPT, across its versions, faced off against tricky HR questions. The verdict? Later versions showed promise, but when it came to nuanced, complex queries, human expertise still ruled supreme. The message? AI's got potential, but HR's nuanced world needs the human touch. Experiment 2: Knowledge Work and AI Harvard Business School and BCG took it further, exploring AI's impact on knowledge work. Surprise finding? While AI boosted some creative tasks, it sometimes hampered performance on complex analytical challenges. The Takeaway: AI's Not a Solo Act What's clear is this: AI, especially in HR and knowledge-intensive roles, isn't a standalone solution. It shines brightest when paired with human expertise, enhancing efficiency and insight rather than replacing it. For those navigating the future of work, it's a blend of AI's rapid processing with the irreplaceable depth of human understanding that'll pave the way forward. Embrace AI, but remember, the human element is your ace card. Stay tuned for more insights on blending AI with human expertise in the workplace. Follow our newsletter for updates. Check out the full article here: https://lnkd.in/gznn43vp #AIinHR #FutureOfWork #HumanAIcollaboration

How AI Can Help with Talent Acquisition and Productivity: I’ve long been a proponent of how new technologies can innovate the way we work. In today's rapidly evolving business landscape, the integration of artificial intelligence (AI) is not just a trend—it's a transformative force that can reshape how companies find and retain talent and how people perform in their roles. According to a study of 31,000 people conducted by Microsoft and LinkedIn, AI helps workers save time (90%), focus on their most important work (85%), be more creative (84%), and enjoy their work more (83%).   I believe that there are many ways in which AI can make a significant and positive impact on how we work. Here are just a few: 1. Enhanced Talent Acquisition: At Lennar, we’ve started incorporating generative AI into our talent acquisition process, helping us find and schedule interviews with prospective candidates. AI-driven tools are revolutionizing the recruitment process. We will receive over 350,000 applications this year and with advanced algorithms, AI can sift through vast pools of resumes and online profiles, identifying the most suitable candidates with precision and speed. 2. Improved Candidate Experience: AI-powered chatbots and virtual assistants can provide immediate responses to candidate inquiries, send reminders about interviews, and offer real-time updates on application status. At Lennar, we are working on a conversational AI platform to help both potential candidates and our own associates across the country get answers to questions they may have about our company, including culture, benefits, schedule, dress code and other key topics. The more it’s used, the more it learns, adapts and improves, leading to a better user experience. 3. Increased Productivity: AI excels at handling routine, repetitive tasks that can consume a significant portion of an associate’s day. Tasks such as data entry, scheduling meetings, processing invoices and managing emails can be automated using AI tools, which not only increases efficiency but also reduces the likelihood of human error. As AI continues to evolve, its role in augmenting human capabilities will only expand, leading to workplaces that are both highly efficient and rich in creative potential. The use of AI can help us build workplaces that are more inclusive, innovative, and productive. The journey has just begun, and the possibilities are endless. #AI #TalentAcquisition #WorkplaceInnovation #FutureOfWork #HRTech #EmployeeEngagement #SkillDevelopment https://lnkd.in/ecaYUyEt

In an era marked by breakneck technological advancement, the emergence of generative AI represents a watershed moment, particularly in how we perceive labor and human-based problem-solving. This change is more than technological; it signifies a fundamental shift in how we’ll need to think about our economic and societal structures. I’ll explain… Knowledge workers have long been the kings of our information-based economy, engaging in the assimilation of information, idea evaluation, and decision implementation. However, the current trajectory of AI is painting a different future. We're transitioning from singular AI models to integrated agentic systems capable of human-level complex problem-solving. Which is why AI skepticism is misguided. The prevalent skepticism towards today’s AI models focuses on their limitations as statistical tools, dependent on their training data. While this critique is apt for individual models, it overlooks a crucial aspect- the collective potential of these systems working in concert. Around the world, people are utilizing powerful AI to decompose human workflows and reimagine them with as little human involvement as possible- think AutoGen and mixture-of-experts paradigms. This approach isn't about creating AGI (a common strawman argument), but about orchestrating collections of AI models, which are already capable of outperforming humans in many tasks...to create products. And they're not just limited to automating manual tasks. This also extend to intellectual functions, possibly representing the last significant labor-saving device humanity will invent. This development is a major cause for concern and the discourse by AI skeptics centered on the weaknesses of individual models, is leading to a dangerous underestimation of the impact that AI will have. The implications of an AI-driven world are significant- a potential devaluation of human labor in knowledge-based professions, and a reshaping of our labor market and economy. As we witness AI systems performing tasks with greater efficiency and accuracy than humans, an important question emerges: what happens to human labor and intellect in a world where machines can perform complex tasks, previously the domain of skilled professionals? Make no mistake, the rise of AI as a multi-agent problem-solving system presents a huge challenge for society. It will force us to reconsider the monetary value of human intellect and labor in a world increasingly dominated by machine efficiency. That's why the focus shouldn't be solely on the limitations of individual AI models, but on the collective capabilities of these systems and their impact on our societal and economic structures. The fact of the matter is AI has been unleashed and we must be clear-eyed about an AI-driven future which is approaching faster than any of us are prepared for. Don't be swayed by AI skeptics; it's not hype. #ai #artificialintelliegence

The Upwork Research Institute teamed up with our Analytics team to conduct a year-long study across all categories of work on our platform to better understand the transformative effects of #GenerativeAI on freelancers' work opportunities and earnings. Meticulously designed to isolate the causal impact of generative AI, the study yielded some fascinating results! 🤖 Generative AI's impact showcases the dynamic interplay of replacement and reinstatement effects (more on these in the whitepaper), where emergent technology creates new work opportunities and increases earnings over time. Contrary to fears of job displacement, generative AI is an overall net-positive trend for the Upwork marketplace and the independent talent and clients we serve. Growth in high-value contracts on Upwork due to generative AI more than offsets the decline we’ve seen in low-value contracts.   📊 Our research highlights nuanced impacts across different work categories. While some categories like Data Science & Analytics see immediate gains in demand and earnings due to reinstatement and new work opportunities, others like Writing & Translation show mixed effects, but ultimately reflect a rise in demand for high-value contracts and earnings due to generative AI. This underscores the importance for professionals to leverage skilling and educational programs, including opportunities offered by Upwork Academy’s AI Education Library, Education Marketplace and partnerships with @Coursera and @Udemy.   🚀 As we navigate this era of technological advancement, this study underscores the tremendous opportunities that we see for Generative AI to empower humans rather than replace them. At Upwork, we're committed to fostering an ecosystem where talent thrives, innovation flourishes, and human-centered AI drives progress and unlocks our potential. Resources like our AI Services hub and access to AI tools from leading providers, as well as platform features like Upwork Chat Pro empower talent on Upwork to become the world’s most AI-enabled independent professionals.   I'm proud to lead a company leaning into human-centered AI innovation, constantly seeking to understand and adapt to the evolving technological shifts in our economy and the world of work.    I invite you to delve deeper into our research findings and explore the full whitepaper, available via our blog post: https://lnkd.in/ghgF49PA    #FutureOfWork #AI #AIInnovation 

The Microsoft and LinkedIn 2024 Work Trend Index Annual Report is out, and unsurprisingly, AI is rapidly transforming the global workforce. Based on a survey of 31,000 people across 31 countries, here are the highlights, and what it means for education. Key Highlights: - AI usage has more than doubled in the last 6 months, with 75% of global knowledge workers reporting using GenAI tools. - 79% of leaders agree their company needs to adopt AI to stay competitive, but 60% worry their organization lacks a plan and vision to implement it. - 78% of AI users are bringing their own AI tools to work (BYOAI), cutting across all generations. - Leaders say they would not hire someone without AI skills (66%) and would prefer a less experienced candidate with AI skills over a more experienced one without them (71%). - AI power users are experimenting frequently with AI, getting support and encouragement from leadership, and receiving tailored AI training. They are seeing significant benefits in productivity, creativity, and job satisfaction. What does it mean for education? - Experience with AI is becoming a key hiring criteria, in part due to research that shows that GenAI use can significantly decrease skill gaps. - 77% of leaders say early-in-career talent will be given greater responsibilities due to AI. This has major implications for how schools and universities prepare students for the job market. - Only 39% of people who use AI at work have received AI training from their company, and only 25% of companies plan to offer training on generative AI this year. This gap between need for training and availability is similarly playing out in schools and systems right now. - As AI reshapes work, the skills required for jobs are projected to change significantly. Educational institutions will need to adapt curricula to focus on the uniquely human skills that will be most valuable in an AI-enabled work world, such as creativity, critical thinking, and relationship building. The rapid rise of AI is transforming the workplace and the job market and the entire education ecosystem has an essential role to play in equipping students and workers with the AI skills and aptitudes that are and will be most in-demand. For the full report, visit: https://lnkd.in/eyfSRzNj AI for Education #aiforeducation #aieducation #durableskills #GenAI #AIliteracy

Last week I shared our Future of Work: AI at Work report. It describes the AI and generative AI (GAI) landscape for the jobs we do, and how we can embrace AI-assisted tools to empower our future opportunities at work. This week I want to share a deeper dive on how GAI technologies will shape occupations and skills we need to do our jobs. Together with @MarCarpanelli at our LinkedIn Economic Graph Research Institute, our insights suggest focus areas for business leaders and hirers to consider as they build and nurture talent. Here are a few highlights: 1️⃣84% of LinkedIn members are in occupations that could leverage GAI to automate at least a quarter of routine tasks and increase productivity. 2️⃣The impact of GAI extends beyond Tech, as all industries employ workers in roles that could leverage GAI to some extent.  3️⃣Certain segments of the workforce, such as workers with higher income and education levels, as well as women and younger professionals, are in jobs likely to leverage new tools more immediately. https://lnkd.in/gSSARNYM

How is the job market transforming with the integration of AI? In today’s fast-paced business world, the integration of AI into our daily operations is no longer a futuristic concept—it’s happening right now. According to recent data, job postings for AI-related roles have surged dramatically. LinkedIn reports that mentions of generative AI, such as GPT or ChatGPT, in job postings have increased 21 times since November 2022. This surge highlights the critical role AI is playing across various sectors. AI is fundamentally transforming the way we work. It’s simplifying processes and freeing up valuable time for employees to focus on creative and strategic tasks that demand innovative thinking. This shift is not only boosting productivity but also reshaping organizational structures, giving rise to new roles such as Head of AI and Chief AI Officer. These leaders are essential for weaving AI seamlessly into the company’s fabric, taking mundane tasks off employees’ plates and allowing them to concentrate on higher-level responsibilities. Imagine routine data analysis and customer service inquiries handled effortlessly by AI. This frees up time for our teams to engage in strategic planning and tackle creative problem-solving. However, we must also confront the broader implications of AI integration, particularly the inevitable displacement of certain jobs. McKinsey & Company estimates that by 2030, up to 30% of current jobs could be automated. This stark reality requires a thoughtful, proactive approach. As responsible AI leaders, it’s our duty not only to implement AI solutions but also to prioritize the retraining and upskilling of employees whose roles are evolving. By leveraging AI, we can reorient these people toward new activities and help them discover new purposes within the organization. AI is more than a tool for efficiency; it’s a catalyst for innovation and human potential. As we navigate this transformation, our focus must remain on creating opportunities for growth and ensuring that every employee can thrive in this new era of AI-driven work. We must continue to discuss, debate, and confront these challenges openly, rather than avoiding or downplaying them. #gpt #chatgpt #ai #openai #job #employees #work