Why Companies Should Redesign Their Workforces Now

Artificial Intelligence is often called a game-changer, yet its true potential remains underhyped.

Underhyped? Yes, you read that correctly.

A study last year revealed that just under half of all working hours across industries could be impacted by generative AI. Banking stands at the forefront, with 72 percent of working hours potentially redefined by AI, closely followed by insurance, software, energy and telecommunications. Even industries like retail, travel, and healthcare see 40 percent to nearly 50 percent of working hours poised for AI-driven change.

And this isn't set to play out at just big business. As the CEO of Reejig, a workplace software company, facing economic pressure, I had to reevaluate everything about how we were getting work done, and in the past year have transitioned from a traditional workforce to one that includes fixed employees, flex workers, and over 50 AI workers. This shift has saved us $1.5 million a month and we're more productive than ever.

Imagine the potential impact on a company with a workforce of over 50,000 employees. AI is quickly becoming ubiquitous in our daily lives and will be mainstream in every corporation within the next 24 months.

AI is not just a tool. It's a once-in-a-generation catalyst that will transform work as we know it.

The AI readiness gap

Despite AI's potential, most businesses are not prepared to embrace this technology. The organizations that stand to benefit the most often face the greatest challenges in adopting AI. They struggle with foundational issues like lacking infrastructure, governance frameworks, and a clear starting point for integration. There is also a critical need for leaders to radically overhaul their mindset around AI. Many are stuck in dogmatic routines and outdated operating systems that are no longer delivering results.

Many early AI solutions promised to be silver bullets but fall short due to poor design and lack of practical application, leaving business leaders hesitant and uncertain about where to begin. In my conversations with CEOs around the world--from emerging midsize scale-ups to long-standing global enterprises--it's clear that they are feeling more pressure than anyone.

The CEO's dilemma

CEOs today face a paradox. There is immense pressure and allure for executives to adopt AI to boost productivity and remain competitive--and for good reason. Financial services company Klarna has reported that its new AI assistant will deliver an additional $40 million in profits this year. Daily Harvest, a plant-based food brand, has reported improved customer service and business outcomes through AI-supported packaging and operations.

Yet, CEOs are also faced with a fear of failing to implement AI effectively and being surpassed by more agile competitors. We've stumbled into a new world where change is constant and faster than ever before. Yet, the most developed organizations with the most at stake through these waves of technological innovation still rely on dated change management processes, and multi-layered bureaucracy. Layered on this is the lowest worker productivity rate on record and the largest aging workforce in history.

It's this dilemma that calls for a circuit break and a new strategic approach to AI adoption.

The imperative of understanding work

Successful AI integration requires a deep understanding of work. There is a lot of fuss and propaganda about how AI is going to replace people. But the relationship between AI and people is actually tangential.

You don't automate people's skills, you automate tasks. So, when business leaders think about embracing this transformation, they first need to have full visibility of their work, down to a task level, the requirements to get those tasks done and the AI or automation opportunity for each task--a work ontology.

Then, redesigning how that work is orchestrated involves recognizing that workers can be employees, flex workers, or digital workers. This requires a nuanced approach to workforce management, ensuring tasks are allocated efficiently across different types of workers.

Traditional workforce operating systems have long been based on job titles and jobholders, lacking visibility into the true nature of the work being done which, in turn, obfuscates true skills and potential of their employees.

In reflecting on my journey with Reejig, the profound transformation we've undergone is a testament to AI's potential. By embracing a flexible workforce model that includes AI workers, we've not only enhanced our operational efficiency but also created a blueprint for others to follow.

Your once-in-a-generation opportunity

The era of AI-augmented work is here, and its potential is vast. Although the journey is complex and challenging, the path forward is clear: Understand work, orchestrate it intelligently, and lead with vision and integrity. Now is the opportunity to design a workforce that is efficient and productive while freeing people up to do the most meaningful work. Don't waste that moment.

This article was originally published on Inc.com on June 23, 2024.

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