From Spectator to Participant: Remaining Competitive in the AI Era
AI Expert Aco Momčilović’s keynote address at the IMAP Fall 2024 Conference held in Zagreb last month was a call to action for companies, their managers, and employees across all sectors. Looking at the opposing perspectives on AI’s impact on society, he explained that on the one hand, AI is expected to enhance productivity and innovation, potentially improving lives and work. On the other hand, there are concerns about job losses due to AI’s efficiency. Here we share highlights from his compelling speech and unique perspective on the subject.
What is Already Available?
A large proportion of existing human jobs will be replaced, and there is no doubt that more jobs than originally thought will be affected. Three years back we were speaking about routine tasks that could be automated, so people with a college education were safe. However, that has dramatically changed.
AI is a General-Purpose technology; this means we are seeing applications and very interesting changes in many different fields. In sports, we saw AI assisting referees in the 2022 FIFA World Cup. More recently, Chat GPT-4 has passed the Bar Exam in the legal profession, aced the US Medical Licensing exam, and gained entry to the top colleges.
AI is even replacing some of the newest jobs, take for example, Instagram influencers created by AI, who have gained a larger following and thus make more money than their human counterparts. AI has even steered drones through a racetrack faster than humans. What you can already be certain of is that you can do your job better with AI tools.
When we combine AI with robotics, we start to see a loss of even the most manual jobs, previously thought safe. Amazon, for example, has gone from using 1,000 robots in 2013 to having 750,000 in 2023. Optimists liken this change to what happened to the 150 thousand people involved in the Horse industry who lost their jobs with the advent of the car. But while the Car industry created many more jobs in the Motel, Domestic Tourism, and Fast-food industries, this is not what is happening here.
Short-Term Predictions
We are dealing with a burden of the past as well. Our education system was designed for the needs of the industrial revolution, training people to become cogs in the machine, while what we need now is a focus on creativity and individuality.
It is perhaps easy in this landscape to consider that we should adapt to technology, but AI is still being created and the story is not yet complete; it can be used and developed in a variety of ways.
The question is, are we paying attention? Currently, companies are using AI to increase productivity, essentially doing the same tasks more efficiently, but there is scope to create new processes that drive value for customers.
AI has surpassed human abilities in many tasks. While initially these were things such as handwriting recognition, common sense completion, and language understanding, recent research from Wharton Business School has seen AI surpass a team of MBA students in the creative task of idea generation. Research at the University of Southern California has even seen AI create funnier jokes than humans.
This has led to a massive change in the most critical skills required of the workforce. Where STEM skills were much in demand eight years ago, they have dropped to eleventh place with the impact of generative AI.
The current most in-demand skills include time management, teamwork, communication, flexibility, and ethics. Indeed, an IBM study suggests that 40% of workers will have to reskill in the next three years. That’s 1.4 billion workers.
There will be winners and losers. So, what are you doing about it? What skills are you developing that won’t be automated? And what if the skill for the next decade is not just knowing how to use AI but when to use it?
Open Questions?
The truth may be that even now most of the work is done by only a small percentage of people; but the change is in the realization that only the top performers are important. It won’t matter how high the skyscraper built with the benefits of AI is if the foundation crumbles. We need to be wary of evolving backwards, of over-relying on AI as it kills human grasping power - our ability to research and study - it kills imagination, kills creativity, and deteriorates our power of understanding.
This metamorphosis - not just a shift - and dealing with its pace is the defining challenge of our time. Understanding it is crucial not just for survival but also for thriving. Education will be key to dealing with this and corporate training will need to shift from a few classes a year to monthly, weekly, or even daily skills updates. It’s now time for companies to reflect on whether their organization is a participant in this change or merely a spectator.
At IMAP we intend to participate, ensuring we can continue giving the best advice to our clients across the sectors on the financial sustainability of their businesses in this era of AI.
Aco Momčilović is owner of Future HR Consulting and President at the Global AI Ethics Institute.
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