FROM AI DISCOVERY TO AI ADOPTION: HR AND TALENT LEADERS' CRUCIAL
Artificial intelligence (AI) has the potential to revolutionize business operations. A recent PwC Global AI study estimates that AI could contribute up to $15.7 trillion to the global economy by 2030. As Generative AI continues to evolve, it is evident that AI transformation is intricate, costly, and fraught with risks. This transformation necessitates significant changes in technology, talent, and culture, with ethical and reputational considerations looming large. The early adopters of widespread AI share a common strategy, known as the 10/20/70 rule, allocating 10% to algorithms, 20% to data and technology infrastructure, and a predominant 70% to business and people transformation.
HR Leaders: Driving AI Transformation
In the intricate landscape of AI adoption, HR and talent leaders play a pivotal role in three distinct ways:
Provide Input on the AI Vision
The development of a comprehensive AI strategy involves a multifaceted approach. HR and talent leaders contribute valuable input to set Gen AI goals, identify benefits, and establish success metrics. They work on aligning the Gen AI vision with business impacts, assessing and mitigating AI risks, and prioritizing initiatives. By collaborating with HR leaders early in the vision development process, organizations gain insights into challenges associated with AI adoption, such as talent scarcity, employee resistance, and future work trends.
Example: Walmart's CPO Donna Morris played a crucial role in prioritizing and investing in AI technology. She sponsored the building of a cross-functional product team, resulting in the development of Gen AI-powered My Assistant, enhancing productivity for Walmart's workforce.
Drive AI Talent Strategy
An effective AI talent strategy is crucial for organizations to align their workforce with long-term business goals. HR and talent leaders design the workforce of the future, transforming roles and skills, and rewiring the enterprise operating model. They translate strategic AI priorities into talent practices, addressing core questions related to skills, competency levels, skills gaps, upskilling programs, employee value proposition, and career paths for AI professionals.
Example: JPMorgan Chase and Royal Bank of Canada have adopted unique approaches to attract AI talent, using specialized recruiters and creating platforms like Tech @RBC to showcase job offerings aligned with broader tech talent markets.
Build the Right AI Culture
AI's transformative power extends beyond technology; it involves applying AI towards organizational goals. A healthy data culture, coupled with innovation and agility, becomes imperative. HR and talent leaders play a crucial role in assessing an organization's culture and readiness for change. In a scenario where Gen AI could potentially eliminate millions of jobs globally, HR leaders prepare employees for a cultural shift, addressing concerns related to learning new technologies, job security, and potential bias.
Example: Morgan Stanley's introduction of the AI @ Morgan Stanley Assistant focused on building a culture of innovation and change. Trust, agility, and a culture of innovation are identified as crucial elements in the AI journey.
Conclusion
AI transformation holds immense potential for businesses, but success requires a holistic approach. By involving HR and talent leaders in strategy development, organizations can navigate challenges and build a robust foundation for an AI-powered future. The collaborative efforts of technology leaders and HR professionals, supported by trusted AI technology partners, will drive successful AI adoption, yielding tangible business outcomes.