Artificial intelligence is immersing itself in our day-to-day lives, making its way into businesses large and small, into our music, our movies, and our lifestyles. As with any other revolution of knowledge, understanding, and innovation, there is a level of uncertainty that causes hesitation. The experts at McKinsey Global Institute (MGI) took a closer look at these emerging technological trends, and how they would impact the world today.
MGI is widely recognized for its work to understand the ever-changing global economy. This week, they released a new report: Skill Shift: Automation and the Future of the Workforce, which focused on how automation and AI technologies are changing the skills needed in the workplace.
Looking solely at early adopters of AI, it is clear that those who implement the new technology are likely to perform better than their hesitant peers. Here’s four key takeaways for proof:
- 80% of extensive AI adopters have better financial performance
Most (71%) extensive AI adopters expected a 10% increase in revenue. McKinsey had previously reported that rather than simply looking to reduce costs, more advanced AI adopters saw the technology as an opportunity to create revenue and rethink the business model. This report solidified these findings, and underscores the importance of an experienced partner in the digital activation process to help manage change.
- AI is not taking all the jobs
Despite fears to the contrary, companies who extensively adopted AI technologies actually reported increasing their headcount, with opportunities for “new collar” jobs and more cross-functional teams. For more expert insight on this topic, check out “Is AI Taking All the Jobs?” in the latest issue of Cognitive Times.
- Advanced AI adopters have an advantage in hiring
The report cautions that those hesitant or resistant to AI will be less attractive to qualified talent, as lower productivity without the technology will lower the wages they can offer. Conversely, advanced adopters of AI and automation will have a distinct advantage advantage. In addition to attracting talented individuals and the ability to offer better wages, they will also have freedom of choice when it comes to hiring.
- The time to adopt is now
As the report says, “The pattern of significant growth and revenue gains going to firms at the forefront of adoption looks set to continue. Their ability to reinvest these gains and pull even further ahead of competitors may create an insurmountable advantage, and increases the importance of all companies to consider how automation and AI could affect their businesses.”