The arrival of AI generative technology, like ChatGPT, has been making headlines since last year. According to a recent article from CFO.com, new data suggests that leaders are highly interested but know they need to plan around the risks associated with adoption. With the aggressive thinking about AI and machine learning by corporate leaders, this has drawn the attention of boards and is placing AI as one of their top priorities.
AI can write everything from a poem to a business plan. The application can dramatically improve productivity for businesses by automating certain tasks. However, with the predictive ability that AI has, it is becoming more important for boards as they seek to anticipate instead of reacting to risk, change, and trends.
The incorporation of new technology requires, among other things, a formulated approach and a communication strategy that lets employees feel like they are in the know and involved in the change. Not only is the technology unprecedented, but it also comes with concerns of a negative impact on the job market with AI replacing or reducing roles within their companies. This phenomenon can be an internal morale killer.
According to a recent survey by Insight Enterprises, concerns around the employee reaction to the widespread incorporation of ChatGPT and other generative AI tools is a significant factor in taking a measured adoption approach. Although leaders may be looking to subsidize employee work with AI, the changes will be difficult to implement quickly. According to the survey, 90% of people who were asked expressed worry about AI replacing or reducing job opportunities in their respective organizations. Additionally, over 25% of business leaders acknowledged their employees’ critical role in achieving long-term success and expressed concerns about displacement in the workplace.
Integrating AI can potentially lead to employee frustration, negative effects on customer experience, and changes in workflow that may harm productivity. It is important for leaders to assess the benefits and risks of adopting AI, and to be ready for any challenges that may come with the full-scale evolution of AI.
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Source: CFO.Com – May 31, 2023
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