Many companies are stepping up their investment in AI despite being uncertain about the business impact or implementation, according to a March 13 report by Orgvue, an organizational design and planning software platform.
For instance, 82% of organizations have invested in AI, according to an Orgvue survey, and 33% will increase their investment by more than 50% in the coming year. However, half aren’t sure about the best way to use it in the workplace.
“Organizations are beginning to realize that the practicalities of embedding AI into core business operations is far from simple,” Oliver Shaw, CEO of Orgvue, said in a statement.
“There’s a dichotomy between the need for business leaders to prepare for AI entering the workforce, their desire for change, and the organization’s ability to make this transformation a reality,” he said. “This gap in thinking stems from a lack of clarity on exactly how AI will impact the business and the workforce.”
In an international survey of 1,000 C-suite and senior decision-makers at medium and large organizations, 61% said they expect AI to replace people in their company, and 69% said they think AI will be the main driver of workforce transformation in the next three years. At the same time, 48% said they’re not sure how they’ll manage developments in AI to optimize use of the technology.
In addition, 69% said they’re confident AI will be embedded in core business operations by 2025, but 39% said they don’t have the organizational expertise to do this in their company. Other barriers to AI adoption included employee skepticism (36%) and a lack of regulation on using AI in the workplace (33%).
In the decade ahead, CHROs will need to navigate several disruptions in the workplace due to AI adoption, particularly in industries related to finance and insurance, professional services and information systems, according to a report from the Society for Human Resource Management and The Burning Glass Institute. Although reductions in force may be necessary, learning and development opportunities will remain key offerings, the report noted.
As AI adoption grows, a majority of the workforce may need to be reskilled in the next five years. To do this correctly, employers will need to keep employees in mind by communicating their vision of the future, addressing fears and helping them understand and obtain the skills they need, experts told HR Dive.
Reskilling employees will likely be critical for retention as well as AI implementation. Although 73% of employers say hiring workers with AI skills is a priority, the majority of them are struggling to find qualified talent, according to an Amazon Web Services survey.