Beyond the Hype: AI's Real-World Impact on Talent and the Future of Work
The Future of Catawba County Summit 2024 brought together leaders and innovators to discuss the path forward for economic success in the region. A clear theme emerged throughout the summit: talent. From workforce development initiatives to discussions on economic conditions, it's evident that attracting and retaining skilled individuals is paramount.
The Looming Impact of AI
The summit highlighted the importance of traditional approaches to talent development and offered a look into the collaborations happening between business, education and government entities to work together to address the talent needs for the future.
An essential component to inject into the conversation is the transformative potential of the third wave of artificial intelligence (AI). This technological advancement presents both immense opportunities and significant threats for the business landscape. AI has the potential to alleviate labor shortages and streamline operations, but it also carries the risk of widespread economic disruption. Businesses that fail to adapt could face a challenging future.
Navigating the AI Landscape
To help businesses navigate this complex landscape, Liberated Leaders, in collaboration with key organizations in the region, is conducting a groundbreaking study: "Promises and Risks: A Study of the Adoption of AI in North Carolina Businesses at the Dawn of the Third Wave."
This SWOT analysis will cut through the AI hype and provide valuable insights into:
The current state of AI adoption in the region
Opportunities for leveraging AI to address talent challenges
Potential threats and risks associated with AI implementation
Gaps in support and resources for businesses
The Specter of Economic Winters
The historical context of job losses due to globalization serves as a sobering reminder of the potential social and economic consequences of technological shifts. Over 20 years ago, the region experienced significant job losses, with approximately 45,000 jobs lost in a population of 340,000, resulting in an unemployment rate of roughly 10%. This stark example illustrates the potential impact of technological disruptions on employment and livelihoods.
Artificial Intelligence (AI) offers the promise of increased productivity and efficiency, but it also poses the risk of job displacement and industry disruption. If left unchecked, this disruption could lead to an "economic winter" characterized by prolonged economic stagnation and hardship. Businesses and individuals unprepared for the AI revolution may find themselves struggling to adapt to a rapidly changing landscape, potentially exacerbating social and economic inequalities.
Beyond the Hype: A Practical Look at AI Adoption in the Real World
In my blog post, "Beyond the Hype: A Practical Look at AI Adoption in the Real World," I delve into the evolution of AI and its implications for businesses. I define AI, explore the technology adoption curve, and discuss the generational factors influencing its adoption. Here is an excerpt most relevant to the talent topic.
The Generational Factor in AI Adoption
A key driver of the accelerated AI adoption curve is the generational shift. Digital natives, comprising late Millennials and Gen Z, have grown up immersed in technology. They are not only comfortable with AI but also view it as an integral part of their lives. This generational fluency with technology translates into a faster and more widespread adoption of AI-powered tools and solutions.
In this diagram from Renato Beninatto, combines the Gartner Hype Cycle with the Technology Adoption Lifecycle from Geoffrey's Moore Crossing the Chasm and the Strauss-Howe generational theory. It offers an interesting perspective on exponential growth that the human brain has a hard time grasping.
The Imperative for AI Integration
This is precisely why local business leaders need to be factoring AI into the talent conversation. Without considering AI's transformative potential, strategies for attracting, developing, and retaining talent will quickly become obsolete. Today's talent is savvy about their long-term marketability and actively seeks AI-augmented roles. They require training to harness the tools that can transform your business and keep it competitive. Failing to recognize and adapt to these evolving expectations could lead to talent attrition, with skilled individuals opting for more tech-driven jobs or relocating to counties that offer better opportunities.
The Generational Factor in AI Adoption: A Deeper Dive
While the generational shift towards digital natives undoubtedly accelerates AI adoption, it's crucial to recognize that each generation brings unique strengths and perspectives to the table. Understanding these nuances is pivotal for businesses aiming to harness AI's full potential while ensuring a smooth transition.
Digital Natives (Late Millennials and Gen Z): These generations, having grown up in the digital age, possess an inherent comfort with technology and a natural inclination towards AI. They are quick to embrace new tools and readily explore AI's capabilities. Their enthusiasm and adaptability make them valuable assets in navigating the AI landscape. However, their relative lack of experience in the workforce and specific industry knowledge can sometimes be a limitation in identification of “hallucinations” and/or poor decision model designs.
Millennials: This generation bridges the gap between digital natives and older generations. While comfortable with technology, they may require additional support and training to fully leverage AI's potential. Providing clear communication about AI's benefits and offering opportunities for upskilling will be essential for fostering their engagement and maximizing their contributions.
Gen X and Baby Boomers: These generations, while perhaps less familiar with cutting-edge technology, hold a wealth of institutional knowledge and functional expertise. They possess the invaluable tribal knowledge of your business, enabling them to critically assess AI-generated output, identify potential inaccuracies or "hallucinations," and ensure its alignment with business objectives. Their experience and domain expertise are indispensable for guiding AI implementation and ensuring its responsible and effective use.
Bridging the Generational Divide
The successful integration of AI hinges on fostering collaboration and knowledge-sharing across generations. By bringing together the technological fluency of digital natives with the experience and wisdom of older generations, businesses can create a powerful synergy that drives innovation and ensures AI is harnessed responsibly and effectively.
The Imperative for AI Integration
This generational interplay underscores the urgency for local business leaders to proactively integrate AI into their talent strategies. Neglecting AI's transformative potential could lead to missed opportunities and hinder your ability to attract and retain top talent.
By recognizing the unique strengths of each generation and fostering collaboration, businesses can create a dynamic and adaptable workforce equipped to navigate the AI revolution and thrive in the digital age.
Where to start: a Call to Action
We invite business leaders and key decision-makers to participate in our crucial study "Promises and Risks: A Study of the Adoption of AI in North Carolina Businesses at the Dawn of the Third Wave." Your insights will help shape the future of our region and ensure that we harness the power of AI while mitigating its risks.
Together, let's explore the promises and risks of AI and chart a course toward a prosperous future for Catawba County.
Conclusion
The Future of Catawba County Summit 2024 served as a reminder that talent remains a key driver of economic success. The rise of AI presents both challenges and opportunities. By participating in the "Promises and Risks" study, businesses can gain the insights needed to thrive in the AI era.
Let's work together to build a resilient and innovative future for our region.
About the Author
Tina Dao is founder and principal of Liberated Leaders, she partners with business owners and decision-makers to ease the burden of company leadership and embrace the discipline needed to create long-term value.
Tina has completed course work from MIT specific to AI and business strategy and worked in the technology industry for over 20 years in some of the most innovative companies of our era.
Note: This blog was 90% human generated and 10% machine (AI) generated.
Citations:
Renato Beninatto The Complex Journey of Technology Adoption
Federal Reserve Bank: https://fred.stlouisfed.org/series/NCCATA5URN#