A recent survey by Boston Consulting Group (BCG) sheds light on the complex interplay between artificial intelligence (AI) and workforce dynamics. The findings, outlined in the latest AI Radar report titled From Potential to Profit: Closing the AI Impact Gap, capture the perspectives of 1,803 C-level executives across 19 markets and 12 industries. While AI’s potential is clear, businesses face significant challenges in leveraging it effectively.
One key issue is talent. The report reveals widespread difficulties in hiring AI specialists, such as data scientists and machine learning engineers, as well as non-specialists trained to use AI tools. Although the demand for AI capabilities continues to rise, companies are struggling to build a workforce equipped to meet it.
Upskilling the existing workforce offers a partial solution, and progress in this area is evident. In 2023, only six per cent of companies had more than a quarter of their workforce trained in AI or generative AI tools. By 2024, this figure had climbed to 29 per cent. Singapore and Japan lead these efforts, while Brazil and Italy lag behind. Despite the progress, nearly 70 per cent of companies have trained fewer than one in four employees, underscoring the long road ahead.
Collaboration between human talent and AI remains a focal point for executives. A majority (64 per cent) believe AI should take the lead in specific tasks, with humans providing oversight. Fewer executives (22 per cent) favour a human-first approach, while 14 per cent envision an equal partnership between humans and AI. Notably, less than 10 per cent expect workforce reductions due to AI automation. Instead, most foresee either maintaining or growing their workforce through the addition of new roles and skills.
The report also emphasises the importance of aligning people and processes with technology. According to BCG, organisations should follow the “10-20-70” rule, allocating 70 per cent of their efforts to optimising people and processes, 20 per cent to technology, and only 10 per cent to algorithms.
BCG’s findings suggest that realising AI’s potential requires more than technical capability. Companies must prioritise talent acquisition, upskilling, and fostering a workforce capable of collaborating with AI. By addressing these gaps, organisations can bridge the divide between AI’s promise and its practical impact.
How to build AI talent
As AI becomes a critical driver of innovation, businesses are recognising the need to develop talent capable of leveraging its potential. However, many organisations face challenges in workforce preparation, hiring, and integration.
To address these gaps, industry experts highlight several key areas for improvement.
Upskilling and training
Investing in workforce training is essential. Globally, only 29 per cent of companies in 2024 reported that more than a quarter of their employees were trained in AI or generative AI tools. To stay competitive, businesses must increase this figure by equipping their workforce with the skills necessary to use AI effectively. Countries such as Singapore and Japan are leading the way in AI upskilling, offering valuable lessons for others.
Prioritising people and processes
Maximising value from AI requires a shift in focus. The “10-20-70” principle suggests organisations should allocate 70 per cent of their efforts to optimising people and processes, 20 per cent to technology, and 10 per cent to algorithms. Reimagining workflows, fostering a culture of innovation, and aligning incentives are vital steps for integrating AI into existing operations.
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Addressing hiring challenges
Finding specialised AI talent remains difficult. Rather than relying solely on external hiring, companies should prioritise upskilling their current workforce and empowering employees with AI tools. This dual approach can mitigate talent shortages while ensuring existing staff contribute to AI initiatives.
Embracing human-centred AI
Executives increasingly view human talent and AI as complementary. While AI is expected to take the lead in certain areas, human oversight remains critical. Most organisations anticipate maintaining or increasing their workforce, with a focus on creating new roles to replace those made redundant by automation.
Strategic leadership
For CEOs, rethinking AI’s potential is paramount. Companies must target transformative opportunities within core functions, define clear KPIs for tracking AI’s impact, and actively lead cultural and organisational change. Anticipating AI’s evolving value and associated risks will also help businesses remain ahead of the curve.
Measuring value creation
Alarmingly, 60 per cent of companies fail to track financial KPIs tied to AI initiatives. This oversight hampers the ability to quantify AI’s contribution to business outcomes. Organisations must integrate clear metrics to ensure AI investments translate into measurable gains.
By prioritising these strategies, businesses can address the talent gap and unlock AI’s transformative potential, positioning themselves for long-term success in an AI-driven future.
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