A recent study conducted by Orgvue, a leading organisational design and planning software platform, reveals that 82 percent of businesses are forging ahead with investments in Artificial Intelligence (AI), even as 50 percent remain unclear about its business impact and implementation strategies.
The report, titled “Human-first, machine enhanced: the role of AI in workforce transformation,” sheds light on the paradoxes within the business community regarding AI adoption.
According to the international survey, which polled 1,000 C-suite and senior decision-makers from medium and large organisations, 69 percent are confident that AI will be seamlessly integrated into core business operations by 2025.
However, 39 percent of respondents admit a lack of organisational expertise in achieving this integration. Other barriers to AI adoption include employee scepticism (36%) and a dearth of regulations governing AI use in the workplace (33%).
Despite these challenges, 33 percent of organisations are set to increase their AI investments by more than 50 percent in the upcoming year.
How can you prepare for the arrival of AI?
Orgvue CEO, Oliver Shaw, commented on the findings, noting, “There’s a dichotomy between the need for business leaders to prepare for AI entering the workforce, their desire for change, and the organisation’s ability to make this transformation a reality.”
The research highlights that 61 percent of respondents expect AI to replace people within their organisations, and 41 percent believe AI will completely disrupt their industries. Paradoxically, 69 percent anticipate AI being the primary driver of workforce transformation over the next three years, while 48 percent are unsure about managing AI developments to optimize its use.
Shaw expressed concern about the gap in understanding, saying, “This gap in thinking perhaps stems from a lack of clarity on exactly how AI will impact both businesses and their workforces – indeed the research indicates spending so far is more of a gold rush than a carefully plotted journey. This will also make managing the transformation all the harder.”
While business leaders express optimism (79%) about AI’s potential for growth and productivity, 70 percent feel a responsibility to protect the workforce from redundancies before embracing AI. Furthermore, 78 percent believe human intervention is crucial to preventing negative outcomes from AI, prompting 80 percent to plan reskilling initiatives for employees.
Arm yourself with a better understanding
Shaw emphasised the need for a balanced approach, stating, “CEOs should arm themselves with a better understanding of how AI will truly impact the work their people do today and the skills their organisation has, as well as how this may change over time.” He concluded by highlighting the importance of bridging the gap in perspective between organisational leaders and those responsible for implementation to avoid derailing long-term plans for business change.
In addition, 78 percent of surveyed leaders are calling for stricter government regulations, with 54 percent expressing concerns that current regulations have not kept pace with the rapid investment in AI. A significant majority, 70 percent, believe AI should be regulated immediately. The report underlines the urgent need for organisations and governments to address these concerns to ensure a smooth and responsible integration of AI in the business landscape.
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.