The Health Strategy . Institute
research and strategy institute for
in-person health strategy and
digital health strategy
Joaquim Cardoso MSc
Chief Research and Editor — of The Health Strategy — Portal;
Chief Strategy Officer (CSO) — of The Health Strategy — Consulting (HSI),
Senior Advisor — for Boards and C-Level
June 29, 2023
This is an Executive Summary of the Article “Companies That Replace People with AI Will Get Left Behind’, published at Harvard Business Review, authored by Behnam Tabrizi and Babak Pahlavan, on June 23, 2023″
The integration of artificial intelligence (AI) into company operations is occurring at a rapid pace, leading to potential job displacement in the short term.
While historically, new technologies have not resulted in widespread unemployment, the speed at which companies are adopting AI poses a significant risk.
White-collar workers may be particularly vulnerable to job losses.
Goldman Sachs predicts that AI could eliminate a quarter of all current work tasks in the United States and Europe, potentially affecting tens of millions of people.
Goldman Sachs predicts that AI could eliminate a quarter of all current work tasks in the United States and Europe, potentially affecting tens of millions of people.
To mitigate the risk of job displacement, two possibilities emerge.
1.First, governments could intervene by either slowing down commercial AI adoption or implementing special welfare programs to support and retrain the unemployed.
2.However, an alternative approach is for companies to embrace generative AI not just for task automation but to empower employees, enhancing their productivity and creating new value.
By radically redesigning corporate processes, companies can stimulate job creation and avoid the short-term displacement trap.
Companies that choose to innovate rapidly with AI have an opportunity to create new jobs at a pace that keeps up with the elimination of existing ones, without relying solely on government intervention.
Boldness and a startup mentality are essential drivers for success in the AI era.
Boldness has become a corporate cliché, with leaders protesting too much, but with AI we need companies to really mean it — to embrace rather than minimize risk.
Similar to boldness, and equally important for successful AI, is adopting the mentality of a startup company, no matter your company’s age or size.
Companies that choose to innovate rapidly with AI have an opportunity to create new jobs at a pace that keeps up with the elimination of existing ones, without relying solely on government intervention.
Companies must embrace risk and be willing to make aggressive investments in AI, beyond mere cost-cutting measures.
Examples of companies adopting these drivers include Adobe, which integrated generative AI deeply into its Photoshop software, and Nvidia, a chipmaker that aggressively pursued expertise in AI, resulting in higher-value offerings and better AI utilization.
The transition to AI cannot be solely driven by the government.
Companies that proactively embrace AI have the potential to thrive in the long run by creating new opportunities and value.
By encouraging employees to develop AI skills and adopt a bold and entrepreneurial mindset, organizations can protect their workforce while contributing to the AI-driven transformation of the economy.
In Brief:
- Instead of fearing AI, society needs to harness its power by putting it in the hands of every individual.
- Companies that replace people with AI without innovative and inclusive strategies risk falling behind, while those that go on the offensive and leverage AI to create value will position themselves for long-term success in the AI era.
Companies mentioned
- Adobe, which integrated generative AI deeply into its Photoshop software, and
- Nvidia, a chipmaker that aggressively pursued expertise in AI, resulting in higher-value offerings and better AI utilization.
Originally published at https://hbr.org on June 23, 2023.
