AI: Are companies ready?

AI: Are companies ready?

Fears of an Arnold Schwarzenegger-style showdown with cyborgs might be far-fetched. Companies that continue to ignore the role of robots, AI, and automation, however, may find themselves facing another type of apocalyptic future in which their companies are referred to in the past tense.

According to a Talent Trends report by Randstad, “AI, machine learning, and robotics will start a revolution.”

In a Deloitte Global Human Capital Trends report, companies viewed AI as vital to their success, but they’re not making plans to address how it will change their organisations:

  • Despite 72% of companies viewing AI as important, only 31% feel ready to address it.
  • More than four out of ten companies (42%) believe automation will have a major impact on job roles over the next two years.
  • In the study, 55% of respondents predicted tremendous future demand for human skills such as cognitive abilities.
  • Despite having a clear understanding of the human skills needed in the future of work, 49% of respondents said they do not have a plan to cultivate these skills.

Why companies aren’t addressing AI

AI is a technology, not a solution, according to Erica Volini, US Human Capital Leader at Deloitte Consulting LLP.

“AI is dependent on data, so companies cannot just ‘turn on AI’ and expect it to work,” she says. “Using AI in business involves cleaning up data, then creating or buying algorithms that will make your business process better.”

Volini explains that this is not a one-size-fits-all process, however. It’s company-specific, and will probably take several years for each company to develop the best process for their organisation.

For example, if a manufacturer wants an AI-based system to provide insight on the best supplier for different parts, Volini says it will take time for the database to mature.

“If you have a salesforce and you want AI to ‘pick the best lead’ to follow up on, you will have to ‘train’ the software to do this well.” AI and machine learning will continue to improve during the training process—but don’t expect instant results.

“In addition, we believe organisations need to understand that even with the advent of AI, there will still need to be human skills applied to help ensure that the insights provided are accurate and make sense within the business context.”

She says humans will always need to be in the loop.

“That requires not only identifying the type of work that individuals need to do, but also confirming that those employees exist within the organisation or can be hired.”

Human skills will be in demand in an AI environment

There’s a misconception that AI will require a wealth of tech skills.

“If you look at workforce economics, only 5-6% of jobs are ‘writing software’ and the rest of us are using the software,” Volini explains. Instead, the growth is focused in other areas that focus on human issues: sales, service, management and customer success management, as well as marketing, analysis and healthcare.

According to Deloitte’s report, service-oriented, emphatic and analytical people will be needed.

“Skills like listening, empathy, communication, sales and leadership are more important than ever,” explains Volini. That’s because the automation of routine transactional work is actually creating a demand for service and support.

“The best example of this is bank tellers, who are now operating as salespeople, rather than workers who only focus on transactional work,” she says.

There is also a need for “robotic trainers,” Volini continues. “Every new application of technology needs someone to ‘manage it’ and ‘train it;’ there are more than 30,000 such jobs listed on online career sites available right now.”

Cultivating human skills

While companies are creating programs to develop service, sales and management skills, Volini says other skills are also needed, such as agility, flexibility, innovation, experimentation and the ability to work in teams.

“There are also many programs being created to build digital acumen, familiarity with cloud/AI/software and … software development.”

The problem is that people are not being given enough time to focus on learning and engaging in these experiences. Also, it’s often difficult for employees to find the right raining for their job.

Fortunately, she says the learning technology marketplace is growing rapidly, making it easier for people to take training into their own hands.

“AI and robotics are changing the way businesses function by helping employers quickly attract and hire skilled talent, while helping employees increase productivity,” says Jason Roberts, global head of technology and analytics in Randstad Sourceright's Talent Innovation Center.

“But as the labor market continues to tighten, and more companies rapidly adopt robots in the workplace, it is increasingly important for human capital leaders to plan ahead and determine which jobs may become automated so they can prepare their current workforce for the in-demand jobs of the future.”

Randstad’s report found that there are not many companies investing in on-site training programs that teach workers the skill sets they need for the changing labor market.

“Only 11% of employers said they plan to provide training or re-skilling programs to existing staff within the next 12 months,” Roberts says. “As the global workforce continues to tighten, reskilling current workers will become increasingly important for companies to meet their future hiring needs and boost employee retention strategies.”

In some industries, like manufacturing, Harry C. Moser, founder and president of the Reshoring Initiative, understands why companies are not moving at the speed of light to provide training for their workers.

“The robots have not had much impact yet,” Moser said. “The overwhelming consensus is that most—probably 60%— of the manufacturing jobs lost have been to offshoring, not to automation.”

However, he admits that AI and automation are inevitable.

“Domestic and offshore competitors will automate to the extent that is economic, or more so, when government subsidized,” Moser says. “Levels of productivity will trend towards a high uniform level.”

Currently, he says the U.S. is not competitive.

“Manufacturing costs are averaging about 40% higher than in China, due to wage rates, currency, workforce, subsidies, et cetera.”

And Moser issues a warning.

“If we do not automate as fast as the competitor countries, the cost gap will widen to an unsurvivable level.”

So, what’s the solution?

“A skilled workforce is key to successful automation, and high-tech factories are key to recruiting the next generation skilled workforce.”

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