The answer to the headline’s question may lie in proving the answer to another question: Who makes better decisions? If a computer algorithm made more reliable and productive decisions, wouldn’t you jump at the chance to replace people with programs? The simple answer is anything but simple.
We defer to artificial intelligence algorithms all the time — we use traffic monitoring apps on our phones to guide us efficiently to our destination. We depend on a weather forecasting app to tell us whether we’ll need umbrellas today. Could the pure logic of an emotionless piece of artificial intelligence guide our employment decisions, too?
Artificial intelligence is changing who we hire and how we work. Here’s how.
Automation optimizes our efficiency, and trained human oversight optimizes automation’s effectiveness. Consider an experiment at Columbia University that tried to assess who could generate higher profits at a business-to-business company selling aluminum. Using an automated system that learned and reapplied every salesperson’s pricing decisions, they found that when salespeople used the recommended pricing by the automated system, higher profits were generated. Perhaps more interesting, they found even more profit when the logic of the automated pricing system was paired with an effective sales rep to close the sale.1
So, what if artificial intelligence could better choose the best fit hire from a pool of candidates? What if it could assess performance and recommend compensation adjustments and promotions with better results? What if it could provide more precision in deciding who will be better to manage people, lead functions, or run the company? Would you use it?
As we partnered in writing this blog post, HRCI Immediate Past Chair Jim Lewis, SPHR, GPHR, observed that the objections to relying exclusively on AI for people-related decisions fall into three categories:
Before company leaders and potential users of the technology feel comfortable relying on AI, they want to understand and support the algorithm’s scientific validity, reliability, stability, and transparency. Even once those are proven, there are operational objections to overcome, including the gaining of management buy-in, employee acceptance and accountability for properly using the technology. And even once those hurdles are cleared, legal concerns remain. The best algorithms are initially created by people, which subject them to implicit biases. Thus, the science of the AI must be legally defensible and must be shown to cause no adverse impact in human capital decisions. Further, there must be flawless data security.
It seems that even when artificial intelligence is shown to outperform human decision-making, barriers to complete acceptance remain. Beyond the scientific hurdles, perhaps more importantly, there are human walls to get over. After all, haven’t you ever ignored the rerouting recommendation of your navigation system because you didn’t think it was correct, only to find yourself sitting in a traffic jam down the road? If the AI at work told you who to hire, who to promote, and how much performance bonus to award each employee, but it differed from your personal views, would you use it?
When we automated routine tasks with robotic technology, many jobs went away. One machine could replace possibly a dozen people. So how will AI impact the workforce?
The good news for leaders and HR professionals is that studies are showing the increased importance of social skills needed to support a world with more AI. In one study, 93% of employers reported that for the future, candidates need the capacity to think critically, communicate clearly, and solve complex problems.
Some futurists predict that AI will provide more opportunities and more jobs. But the skill sets needed in the future will be drastically different.
McKinsey research suggests a major skill shift that will need to occur. Specifically, by 2030 the report estimates demand for manual labor and basic cognitive skills will fall around 15%. At the same time, demand for people with higher cognitive skills (+8%), social and emotional aptitude (+24%), and technological skills (+55%) will increase.
Consider these studies as you implement succession and career planning programs. Partner with your IT and strategy functions as they explore the use of AI. Ensure your talent and workforce planning functions have the proper amount of lead time to build the capacity you need to harness the output of your AI.
Help your organization lead into AI in a responsible way. Build the skills in yourself and your organization to leverage the insights AI will provide. Be curious and embrace the future. Remember the Jetsons and how we could not have imagined a day when we could talk into our watch and communicate with others? Well, that is “old” technology now. What is next?
Steve Dion is founder and CEO of Dion Leadership. Steve has dedicated his career to understanding and improving organizational cultures through the creation and deployment of innovative assessment, leadership, and team development programs. His passion for improving businesses through harnessing the power of their people has led him to work with many progressive, global Fortune 1000 organizations. He regularly writes for the CEOWORLD magazine and Training Industry. Steve and his Dion Leadership colleagues are currently working on the development of a new series of training products that support work-life alignment. Follow him on LinkedIn.