Two weeks back, the World Economic Forum published insights from PwC’s 2024 Global Workforce Hopes and Fears survey, and here are the highlights:
- Youth Embrace AI: 70% of young employees (aged 18-25) see Generative AI (GenAI) as an opportunity to expand their capabilities. This optimism highlights a generational readiness to harness AI for career advancement and skill enhancement.
- Rapid Skills Evolution: Skills in AI-related occupations evolve 25% faster than in other fields, necessitating continuous learning and adaptation. The rapid pace of change underscores the importance of staying current with technological advancements to remain competitive in the job market.
- Wage Premium for AI Skills: Employees with AI skills can command up to a 25% wage premium, reflecting their high value to employers. This wage premium acts as a strong incentive for both young workers to acquire AI skills and for employers to invest in AI training programs.
- Skills-First Hiring: Organizations are shifting towards skills-first hiring, valuing practical AI competencies over traditional qualifications. This approach helps organizations quickly adapt to AI-driven changes by prioritizing candidates with the necessary skills.
Like it or not, AI is reshaping industries and redefining job roles. Just like how the internet, social media and 5G have forever changed our behaviours and work habits, so will AI.
As a matter of fact, it’s not the first time WEF highlighted these key trends. As I was looking through their past entries, I found similar sediments too:
- McKinsey emphasizes the rising demand for technological, social, and higher cognitive skills due to AI and automation. Continuous learning in these areas is crucial for future job markets, making it essential for young professionals to stay updated. (Source)
- The Burning Glass Institute suggests job reconfiguration and the importance of skilling up for knowledge-based workers to coexist with AI technologies. This is particularly relevant for those entering the workforce, as AI continues transforming various industries. (Source)
- The International Monetary Fund estimates that up to 60% of jobs in advanced economies may be impacted by AI, highlighting the urgency for skill development. This underscores the importance of acquiring AI-related skills to remain competitive in the job market. (Source)
In fact, way back in 2018, WEF already did a piece that highlights the need for continuous learning and adaptation in the face of AI-driven changes. (Source)
Should the workforce be worried for their job security?
Are Humans Going To Be Replaced By AI?
Frankly, if you were to ask any AI Enablers like me the question “Will AI replace a role?”, our default answer would usually be:
“No, AI will never replace a role. The role will be replaced by someone who knows how to apply AI in that role.”
In other words, a marketer will be replaced with a marketer with AI skills, just as how an HR professional will be replaced by a counterpart who knows how to include AI in their workflow.
Although I have to admit it felt ironic that the people who asked me those questions are not dabbling in AI at all, other than opening a free ChatGPT account some time ago and never logged in since.
Because if they had continued to use ChatGPT or any Generative AI tools, they would have realised that AI is never meant to take over what we do. More so if you’re a domain or subject matter expert.
(But that’s a conversation for another day.)
For now, let’s deep dive into what all these research and insights mean for established organizations and growing SMEs.
Workshops, seminars and conferences on AI and the future of work
AI to Future-Proof Your Workforce
So, what large corporations can do to capitalize on this ground-breaking technological shift?
Rapid Skills Evolution
Let’s face it: in today’s fast-paced tech world, skills, especially those related to AI, are evolving rapidly. To keep up, organizations need to be proactive about continuous learning and skill development.
Imagine a company investing in AI analytics courses from top-tier institutions like Oxford and the University of Otago. They’ve seen significant boosts in their operations. For example, a marketing team that took these courses was able to fine-tune their campaigns, leading to a 30% increase in customer engagement. It’s a clear win – staying on top of AI advancements can really give you that competitive edge.
But it’s not just about technical skills. As AI weaves into various business areas, employees at all levels need to adapt and pick up new competencies.
That’s why fostering a learning culture is so important. Encourage your team to develop both hard and soft skills. This way, they stay versatile and ready to handle the ever-changing landscape of AI technologies. By promoting this kind of environment, companies can stay ahead of the curve and drive innovation in an AI-driven world.
Skills-First Hiring
Adopting a skills-first hiring approach can help organizations quickly adapt to AI-driven changes. By focusing on practical competencies over traditional qualifications, companies can build a workforce that’s well-equipped to leverage AI technologies.
Take IBM, for example. They’ve shifted their focus to skills-first hiring, which has kept them competitive in the rapidly evolving tech landscape. This strategy not only fills immediate skill gaps but also fosters a more inclusive and diverse workforce. It opens doors for individuals who might not have conventional educational backgrounds but possess the necessary skills to excel.
Implementing a skills-first hiring policy also has long-term benefits. It encourages continuous professional development among employees, showing them the value of acquiring new skills that are directly linked to career advancement.
Plus, this approach can spur greater innovation within the organization, as employees with diverse skill sets and backgrounds bring unique perspectives to problem-solving and project execution.
Citizen-Led Learning Initiatives
Citizen-led learning initiatives can spark significant innovations within organizations. By encouraging employees to take charge of their own learning journeys, companies can foster a culture of self-directed learning and experimentation.
Nexford University showcases this approach perfectly. In their finance department, employees were given the freedom to explore AI-driven financial modeling tools on their own. The result? More accurate forecasting and a 20% reduction in time spent on manual data entry.
Organizations can back citizen-led learning by offering resources, tools, and platforms that support self-directed education. This could mean subscriptions to online courses, access to AI tools and software, and chances for employees to attend workshops and seminars.
By empowering employees to learn and experiment with AI technologies, companies can boost creativity and practical problem-solving skills, leading to more innovative and effective business processes.
Welcoming AI as your competitive advantage
AI to Supercharge Your Business
Now, what if you don’t have the firepower of large organizations? What can SMEs do to leverage AI as well?
Wage Premium for AI Skills
Investing in AI skills can give SME business owners a significant competitive edge. Offering AI training to employees not only enhances their individual capabilities but also boosts overall business growth.
Enter… DataRobot. This AI-driven company has demonstrated that providing AI training to employees leads to a more skilled workforce and better business outcomes. Employees with AI skills can command up to a 25% wage premium, making them more valuable assets to the organization. This kind of investment in human capital can attract top talent and improve employee retention, as workers see the direct benefits of acquiring AI skills.
Moreover, the wage premium associated with AI skills underscores the high demand for these competencies in the job market. SME business owners who prioritize AI training can position their companies as attractive employers, offering competitive salaries and career development opportunities. This strategy not only helps retain current employees but also attracts new talent eager to develop their AI expertise.
Strategic AI Investments
Viewing AI as a strategic investment can drive value in various business areas. SMEs can significantly benefit from integrating AI technologies into their operations.
Ever heard of Kroger? This grocery chain successfully implemented AI-powered customer service chatbots. These chatbots assist customers with tasks like finding products in-store, offering personalized promotions based on shopping history, and providing real-time order tracking. This strategic use of AI has not only improved operational efficiency but also enhanced customer satisfaction, leading to higher sales and repeat business.
Similarly, retail giants like SEPHORA have deployed AI-driven chatbots on platforms like Facebook Messenger. Sephora’s chatbot provides personalized product recommendations, makeup tutorials, and allows customers to purchase items directly through the bot. This has led to a significant increase in customer engagement and sales, demonstrating how AI can revolutionize customer service and drive business growth.
Collaborating with AI Experts
You’ve probably heard me rave about partnerships, and it’s hyper-applicable here.
Partnering with AI experts and organizations can bridge knowledge gaps and accelerate AI adoption for SMEs. Collaborations with AI consultancies or tech firms can provide access to advanced AI tools, expertise, and best practices.
A notable case study is the partnership between Levi Strauss & Co. and the AI company pymetrics (now Harver). Levi’s used Pymetrics’ AI-driven hiring platform to improve their recruitment process, leading to more effective hiring and reduced bias in candidate selection. This collaboration helped Levi’s optimize their talent acquisition strategy and enhance workforce quality.
Such partnerships can also facilitate the implementation of AI solutions tailored to the specific needs of SMEs. By working with AI experts, business owners can develop customized AI applications that address their unique challenges and opportunities. These collaborations can lead to more effective and efficient business processes, driving growth and innovation in the SME sector.
Additionally, partnering with AI experts can provide ongoing support and training, ensuring that employees are equipped to maximize the benefits of AI technologies.
Looking ahead into a world integrated with AI
Parting Thoughts: Cultivate an AI-Ready Culture
To truly harness the power of AI, it’s essential for both large organisations and growing SMEs to foster an AI-ready culture. This means embracing continuous learning, prioritizing skills-first hiring, and encouraging citizen-led learning initiatives. By investing in AI training and strategic AI solutions, and collaborating with AI experts, companies can ensure their workforce is equipped to leverage AI technologies effectively.
Whether through case studies like DataRobot’s AI training programs, Kroger’s AI-powered customer service, or Levi Strauss & Co.‘s partnership with pymetrics, it’s clear that an innovative, AI-ready culture is the key to sustainable growth and a competitive edge in today’s evolving market.
Maverick Foo
Lead Consultant, AI-Enabler, Sales & Marketing Strategist
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