An industry leader is leveraging AI in an interesting way – restructuring their compensation structure. As the capabilities of AI continue to grow, many fear their jobs will become obsolete. While there is an unavoidable truth to that sentiment, it’s not all doom and gloom. One of the world’s largest payment processors (Klarna) is one example.
A Tool For Growth – Not Destruction
The implementation of AI into businesses is often viewed as corporate greed. Many assume the goal is to eliminate as many workers as possible and that’s not always the case. AI is a tool, albeit a very powerful one. Just like any tool, it thrives at doing what it has been designed for but falls short in other areas.
When the calculator was created, it didn’t eliminate the accounting profession or the need for mathematicians. It turned a relatively long and mundane task into something that produced insanely accurate and instantaneous results. Putting this tool in the hands of humans was a force multiplier.
Increasing The Value of Humans
By leveraging AI properly, companies are able to gain efficiencies by applying their tools where they are most effective. Klarna has reduced their staff from 4,500 to 3,500 via attrition. They claim that their AI Customer Service assistant is able to replicate the work of 700 FTE’s. But that’s not the full story.
Klarna is refocusing their Human Capital on tasks that generate revenue and in areas where AI falls short. It’s not about greed, it’s about putting your aces in their places. For the associates who remain, Klarna has indicated that they will be increasing salaries more rapidly.
Phase 1 Has Only Just Begun
Artificial Intelligence is the digital version of the assembly line. Where robotics replaced people for mindless tasks, so will AI in it’s ability to gather and analyze data faster than the human mind. You will continue to read stories about companies reducing their workforce with the adoption of AI but that will only be the first phase of this new era.
People will be hired once again and an equilibrium with this new technology will eventually be reached. In the end,
- Businesses will become more efficient.
- AI will do what it does best.
- Employees will be assigned more complex and nuanced tasks that leverage their unique skillsets.
Fear of The Unknown
It’s refreshing to see a company act strategically and graciously with their AI adoption. Whether it’s the adoption of robotics in assembly lines, computers in the office or AI in all that we do, the need for human intelligence isn’t going anywhere.
The full capabilities of AI are unknown and the unknown brings fear. What is certain is the workforce is undergoing a massive change. Some companies will incorporate AI to take their businesses to new heights while others will overestimate it’s capabilities and fall flat.
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