The Impact of AI on the Business World: A Double-Edged Sword

Recently, the Diary of a CEO podcast featured one of the most prominent minds behind AI technology, Geoffrey Hinton. Wrapping up the conversation, the host asked him what career advice he would give his children as they navigate a new normal where AI is increasingly prevalent. His response?

“Become a plumber.”

The truth is that Artificial Intelligence (AI) is transforming the business landscape at an unprecedented pace. Yes, we’ve heard that before. Humans have lived through several different revolutions, and the same was said about innovations like the cotton gin or the automobile. AI offers similar changes but on a massive scale–everything is likely to be impacted, and there’s so much we don’t know about the future.

From automating routine tasks to generating insights from vast amounts of data, AI has the potential to transform how organizations operate. However, with these advancements come significant challenges, particularly concerning global employment and ethical considerations. In this article, we will explore the pros and cons of AI in business and its implications for jobs. We’ll also end on an optimistic note, sharing some ways that the average office worker can leverage AI to enhance productivity.

The Advantages of AI in Business

Generally speaking, AI can mean really exciting things for most people. One of the best things about today’s AI models is that they are constantly improving and getting better–which means the people who use them can continually improve productivity. A report from Stanford shared that major AI models have gained 40 “IQ points” in just one year, with no sign of slowing down. What could you do with an extra 40 IQ points on a daily basis?

Speed Up Research and Development

AI can process and analyze vast datasets much faster than humans, enabling quicker decision-making and innovation. Businesses can use AI algorithms to identify trends, evaluate product performance, and predict market shifts, leading to more informed strategic planning. Research workers can use AI to accumulate, analyze, and disseminate actionable insights from amounts of data that were previously unfathomable.

Enhance Creativity and Idea Generation

Forget about writer’s block. AI tools can assist in brainstorming sessions by providing data-driven insights and suggesting creative solutions. For instance, AI can analyze consumer preferences and suggest new product ideas that align with market demands, fostering a culture of innovation. Working on new marketing campaigns? Begin your work with a handy checklist ready.

Automate Processes

Repetitive and mundane tasks—such as scheduling meetings, managing emails, and data entry—can be efficiently handled by AI systems. This automation allows employees to focus on higher-value tasks, improving overall productivity and job satisfaction. Realistically, a lot of what entry-level workers do currently can be done efficiently by AI technology (though that’s not such great news for the entry-level workers–more on that below).

Improve Customer Experiences

AI-powered chatbots and virtual assistants can provide 24/7 customer service, handling inquiries and resolving issues in real time. This not only enhances customer satisfaction but also frees up human resources for more complex customer interactions. While it’s not a great idea to completely hand off your customer support to AI assistants, they can be really helpful with handling the top-of-funnel most common questions and requests. This saves a lot of time for the agents who need to deal with more complex issues.

Cost Reduction

Ask a CEO about AI in their company, and they’re likely to mention this benefit. A 2022 McKinsey survey on the state of AI found notable economic return on AI investment across a large majority of businesses who responded. 63% reported at least a 5% annual revenue increase in 2021 thanks to AI adoption, and various other studies show even higher numbers in 2023.

By automating processes and improving efficiency, businesses can significantly reduce operational costs. This financial benefit is particularly appealing in competitive markets, where profit margins are often tight. Plus, AI can offer some much-needed cost savings to SMBs who don’t have the resources of their larger counter-parts.

The (Potential) Drawbacks of AI in Business

As with all business considerations, there is an upside and a down-side to the latest round of tech innovation. It’s likely that AI can make your job easier, so you have more time to focus on highly impactful work (or take a nap). That being said, there are going to be serious repercussions for the entire workforce, and many of them don’t have an easy answer.

Job Displacement

One of the most pressing concerns regarding AI is its potential to reduce jobs, particularly in traditional office and support roles. Just as robots have replaced many tasks on factory floors, AI can take over numerous functions in white-collar jobs, leading to job losses and a shift in the labor market.

A Forbes article reports 65,000 job cuts were announced in April 2024, with AI being blamed for the huge number of losses. Just as concerning, AI is predicted to displace 56% of entry-level jobs in the next five years. That’s a high number of people who will have trouble finding a job–and society will need to have a plan for supporting these individuals.

Skill Gaps

As AI becomes more integrated into business operations, there will be a growing demand for workers with advanced technological skills. An IBM report predicts that 40% of the global workforce will need to intentionally upskill or reskill due to AI. This shift can widen existing inequalities, as those without access to training and education are the most likely to be left behind.

Ethical Concerns

In addition to significant job loss scenarios which could greatly impact our entire society, the use of AI raises other ethical questions around:

-       Data privacy issues 

-       Algorithmic bias and stereotypes

-       Misinformation (and “deep fakes”)

-       Privacy violations or an increase in data breaches

-       Copyright and intellectual property violations

-       Use of AI in education; youth development

Companies must navigate these challenges carefully, ensuring that their AI applications are transparent and fair. It’s essential that AI platforms are used thoughtfully and with a clear effort to avoid violating any of these ethics–but it will take time and effort to do things the “right” way.

Dependence on Technology

Over-reliance on AI systems can lead to vulnerabilities. If businesses become too

2001 A Space Odyssey (1968)

dependent on AI for critical tasks, they may risk operational disruptions in the event of a system failure or cyberattack. Here’s a simplistic example: think of a high school student who relied on AI to write all of their papers. How prepared will they be to write college essays? We can’t let hard-won knowledge be lost due to ease and convenience.

Resistance to Change

AI won’t help your company if the employees are unwilling to use it. The integration of AI can be met with resistance from staff who fear job loss or are uncomfortable with new technologies. Effective change management strategies are essential to smooth the transition and foster acceptance.

Try it Today: Tips for Improving Productivity with AI

AI is here to stay, and smart workers will harness its capabilities to enhance their own productivity. Here are some simple ways to get started asap:

Leverage AI tools for task automation. Use AI-powered platforms such as scheduling assistants, email sorting, and project management software to streamline routine tasks, allowing more time for strategic work. If you’re not sure where to start, having your emails sorted and organized is an easy first step (try SaneBox or just leverage the Focused Inbox feature of Outlook).

Use AI for data analysis. Do yourself a favor and familiarize yourself with data analytics tools that utilize AI. These can help you derive insights from data quickly and make informed decisions based on trends and patterns. We like Tableau or Microsoft Power BI. Many of the platforms you already use are employing language learning models to better understand the data they accumulate. For example, Salesforce is using AI to unify data for better decisions. You may want to see if there are any updated tutorials for the programs you already rely on.

Enhance communication with AI. Many professionals feel they spend too much time getting simple information to their colleagues. Consider creating an agenda for a meeting, writing down the notes, and sharing a recap–all things that AI tools can assist with. Utilize AI-driven tools that can summarize meetings, transcribe discussions, or  generate email responses, streamlining communication processes.

Stay informed and upskill. If you have a bit of downtime, spend it getting smarter on what AI can do for you. Invest time in learning about AI technologies relevant to your industry. Online courses and webinars can help you develop skills that will make you more marketable in an AI-driven workplace. You may want to review a list of AI bootcamps, suggested by Forbes.

Get writing support. A lot of people simply dislike writing, and a study out of the UK suggests we are in the midst of a “writing crisis”, with few students writing at the appropriate level. One of the most attractive things about AI (to many people) is that it offers the ability to share thoughts in a way that was previously intimidating. You can use AI tools to come up with a killer cover letter, tweak that note to your boss, or write a scathing customer service complaint. Consider using AI tools to compile your next PowerPoint presentation; you’ll get a good head-start and critical practice using new tools.

Rather than viewing AI as a replacement, view it as a collaborator. Explore ways to integrate AI into your workflow to enhance creativity and efficiency, and don’t be shy about sharing those new insights with your team.

The Bottom Line

AI is reshaping the business world, and it’s likely to provide some really exciting advantages while we navigate some really complicated challenges. While it offers the potential to enhance productivity and streamline operations, it also raises concerns about job displacement and ethical considerations. The best way to reap the benefits is to embrace this technological shift, looking for new ways to position yourself for success with the support of innovative tools. 

To learn more about AI and its impact on your business operations schedule a discussion with a Sagin professional who can focus on your specific business needs and the risks and rewards AI can bring to your operations as well as setting policies and deploying techniques which can significantly enhance your operations.   You can reach us at:  https://www.saginllc.com/ or +1.312.281.0290 or email us at info@saginllc.com