Don’t Dodge The AI Bullet, Catch It! Here’s How.
Last week, I attended a talk on driving growth through AI innovation. While I gained valuable insights across B2B enterprise sales strategy, leadership, and the challenges founders face, I noticed that amid all the excitement about AI's promise, there's a consistent gap in discussions about managing its implementation beyond the sale.
While there’s both excitement and hand wringing about AI and its impact on the workforce, practical discussions about managing it are scarce. a 2023 PwC survey found that while 76% of UK business leaders believe AI will significantly change the way they do business in the next 3-5 years, only 31% have a plan to address the potential impacts on their workforce. This stark gap between awareness and preparedness is a clarion call to action for organisations and tech companies alike.
Reflecting on this, I'm reminded of past technological shifts. In my early 2000s "below-the-line" marketing days, we faced the challenge of getting people on board with the internet. There was dismissiveness and distrust of its potential, requiring us to prove its worth. Later, I would encounter similar resistance when introducing new media to colleagues, journalists, and clients, often with considerable pushback and the need for extensive "show and tell."
However, the AI revolution presents unique challenges compared to these previous shifts. The pace of change is unprecedented and the potential for disruption is deep. Unlike the internet or social media, AI can make decisions and perform tasks that were once exclusively in the human’s domain. This fundamental shift requires a new level of preparedness and adaptability from organisations.
As we become immersed in the fourth industrial revolution, people and companies can no longer cling to their comfort zones or resist change. While they may try, reality won't afford them this luxury. I see an impending inflection point which, without careful management, will profoundly impact the way people work and cause serious business (and life) continuity issues.
To address this, proactive consultation and planning need to take place within organisations. Tech companies also need to realise that it’s in their interest to play a meaningful part in fostering responsible change management, as part of their business development and customer success functions. Likewise, it would be remiss of professional individuals if they weren’t asking questions of their management and sticking up their hand to offer input where possible. Without opening up these conversations, significant risks emerge for talent, organisations, and technology suppliers alike.
The stakes are high. McKinsey estimates that AI could deliver additional economic output of around $13 trillion by 2030, but only if it's implemented effectively. Yet, a 2023 survey by Boston Consulting Group found that while 94% of companies are actively piloting or implementing AI, only 22% have successfully scaled AI to achieve a meaningful bottom-line impact. This gap underscores the critical importance of effective implementation strategies.
What lies ahead? I see three general scenarios:
The Good
In an ideal scenario, organisations implementing disruptive technology will have a comprehensive change management plan, spearheaded by a steering committee of domain experts (with consultation and support from the tech company), business leaders, along with HR and Communications professionals. This planning doesn’t take “forever”, rather it is agile yet thoughtful, developed with thorough consultation with affected employee stakeholders across the organisation during the auditing and design stages.
The people: Employees will embrace augmented job descriptions tailored to the organisation's new ways of working. This may involve more focused and thoughtful work, and the opportunity to upskill in key areas. Employees will feel valued and see a clear path for their professional growth within the evolving organisation.
The organisation: Poised to fully leverage the promise of new technology, the organisation benefits from an engaged and supportive workforce. This alignment between organisational goals and employee capabilities drives innovation, efficiency, and competitive advantage.
The tech company: Enjoys a mutually beneficial relationship with clients who not only understand the product's benefits but also employ it effectively. This leads to successful case studies, positive word-of-mouth, and a growing customer base, fueling further innovation and market expansion.
The Bad
In a less-than-ideal scenario, organisations implement disruptive technology without a comprehensive change management plan. Consultation with stakeholders is limited or retrospective, leading to misalignment and resistance.
The people: Employees struggle with poorly defined job descriptions that fail to address the organisation's new ways of working. They feel uncertain about their roles and future within the organisation. Opportunities for upskilling are limited or poorly communicated, leading to anxiety and decreased job satisfaction.
The organisation: Fails to fully realise the benefits of the new technology due to a disconnected and apprehensive workforce. The lack of employee buy-in results in slower adoption rates, reduced efficiency, and missed opportunities for innovation. HR is forced to manage the “people problem” while operations looks into ROI.
The tech company: Is on the defence, facing challenges with clients who have a superficial understanding of the product's benefits and struggle to employ it effectively. This leads to underwhelming results, disappointed clients, and difficulty in securing positive case studies or referrals.
The Ugly
In the worst-case scenario, organisations rush to implement disruptive technology without any meaningful change management plan or stakeholder consultation. This leads to chaos and significant negative outcomes.
The people: Employees find themselves with obsolete job descriptions and skills, facing potential redundancy. There's widespread fear, resentment, and a collapse in morale. Those who remain feel overwhelmed and ill-equipped to handle new technologies, leading to burnout and high turnover rates.
The organisation: Experiences severe disruption as the hasty implementation of new technology clashes with existing processes and unprepared staff. This results in major productivity losses, damaged client relationships, and potential data mismanagement. The organisation’s reputation and market position suffer.
The tech company: Confronts a crisis as their product becomes associated with organisational failure and job losses. They face potential legal challenges, negative press, and a tarnished brand image. Client retention plummets, and new sales become increasingly difficult, threatening the company's long-term viability.
Beyond the immediate business impacts, poorly managed AI implementation could have far-reaching societal consequences. It’s not unimaginable. Widespread job displacement without adequate retraining or support could lead to increased inequality, social unrest, and economic instability. It's therefore crucial that organisations and tech companies alike consider these broader implications as they navigate the AI revolution.
In a world of AI-driven business transformation, only through thoughtful, well-executed change management can we hope to realise the full potential of AI while mitigating its risks.
