GenAI: Proactive Workforce Prep or Last Minute Panic?

Mathias Otte
Oct 15, 2024
5 min read

Updated: Oct 17, 2024

As someone deeply immersed in learning and development, digital transformation, and strategic workforce planning for years, I've been following the GenAI discussion with great interest. Like many of you, I got caught up in the initial excitement of GenAI and conversational interfaces. It was like we'd discovered a shiny new toy, and perhaps we got carried away – at least I did.

Figure 1 - Hype Cycle

Recently, I've noticed the GenAI hype starting to flatten.[2] Reality has caught up with us, and it seems many struggle to find those "big rock" use cases or overcome regulatory hurdles. According to Gartner, Generative AI has reached the "Peak of Inflated Expectations."[3]

But here's the thing: As we transition into the "Trough of Disillusionment," the real challenges are just beginning.

I believe we are not well prepared for the upcoming technology and workforce challenges if we do not start orchestrating the dynamics of

Understanding the impact of GenAI on skills
Planning for a fundamentally revised shape and size of the future workforce
Keeping necessary organisational changes in mind.

We tweaked "around the edges" in the past, mainly because Learning & Development, Strategic Workforce Planning, and Organisation Design operate independently. It is time to understand these three components holistically and how they are intertwined to be at least in lockstep with technological changes and impacts.

The Australian GenAI Journey

In my conversations with Australian companies, I've noticed a common thread. Many are placing all the responsibility for GenAI on their CIO departments - from risk management and regulatory compliance to security and ethical questions and the education of business and product owners. This creates bottlenecks and slows down decision-making and use case development.

The stats back this up. While 66% of Australian organisations plan to adopt GenAI within the next year, only 11% feel confident in their ability to implement it effectively. Even more telling, 44% view GenAI as presenting more risks than opportunities.[4]

But I'm still optimistic: experts predict that over 80% of enterprises will have used GenAI by 2026. This suggests that most companies will find their way through the trough and up the "Slope of Enlightenment."

The AI Impact on Australian Jobs

In my work with strategic workforce planning, I've seen firsthand how AI and intelligent automation reshape Australia's workforce. It reminds me of the Industrial Revolution's impact on manufacturing - both disruptive and full of opportunity.[5]

The numbers are staggering: By 2035, about 2.7 million Australian jobs could be at risk from automation. But here's the silver lining - this same technological transformation could potentially create 5.6 million new jobs over the next 15 years.[6]

What's fascinating to me is how the introduction of generative AI has shifted the focus of automation. It's no longer just about blue-collar jobs - white-collar professions are now in the spotlight. Industries like professional services, education, scientific and technical fields, and financial services face the most profound impact.[7]

To successfully navigate this AI-driven transformation, Australian companies need to focus on several key areas:

Developing ''AI confident'' and ''AI competent'' staff
Understand their current workforce anatomy and future skills-shifts
Investing in AI skills for their workforce to remain competitive ahead of technology implementation and not as an afterthought
Encouraging experimentation and innovation in AI use, underpinned by a significant cultural shift
Provision for new organisational structures, reflecting the changing nature of the workforce, culture and ways of working
Continuously monitor workforce developments and emerging skill shifts in the global labour market and re-adjust their workforce strategies.

Preparing for the AI-Driven Future

So, what does this mean for us as leaders in learning and development, digital transformation, and workforce planning?

Informed Organisation Alignment

In my experience, we need to focus on three key areas:

Strategic Workforce Planning

This is like playing chess while the board keeps changing. We must anticipate future skill needs and align our human workforce with technological advancements.

Take a Skills X-Ray of your workforce: Think of this as understanding the skills DNA of your workforce. It's crucial to understand what skills your workforce currently possesses. Advanced technology like SkyHive.ai can provide ongoing "x-rays" of your workforce.
Forecasting future skill requirements: This is like predicting weather patterns. Leaders need to anticipate what skills will be required as AI technologies evolve.[8] Anticipating skill needs is not only part of observing new and emerging technologies but also understanding what skills are emerging in the job market and identifying new skills- clusters that form, indicating new jobs.
Identifying skill gaps: Picture this as finding missing puzzle pieces. Once you know what you have and what you'll need, you can spot the gaps.

Organisation Design

Redesigning the organisation for AI integration is like renovating a house to accommodate new smart home technology. It requires:

Rethinking job roles: Some jobs may need to be split, combined, or reimagined[9].
Creating new positions: As AI takes over certain tasks, new roles focused on AI management and oversight may emerge (e.g. AI Ethicist).
Fostering cross-functional collaboration: AI often breaks down silos, requiring teams to work together in new ways.

Workforce Skills Development and Realignment

This is where my passion for learning and development comes in. We need to develop AI literacy programs, invest in upskilling and reskilling initiatives, and encourage a growth mindset.

Preparing the workforce for AI is like training for a new sport that combines elements of games you already know and heaps of new elements and moves. This involves:

Developing AI literacy programs: Literacy programs should help employees understand AI capabilities and limitations. It's like teaching everyone the rules of the new game[10].
Upskilling and reskilling initiatives: As AI takes over routine tasks, employees must develop higher-order skills.
Encouraging a growth mindset: Employees must be adaptable and open to continuous learning. It's like cultivating the attitude of always being ready to learn new game strategies.[11]
Reset culture to a culture of experimentation and acceptance of failure as a learning opportunity.[12]

One approach I've found particularly effective is creating "AI Playgrounds" - safe environments where employees can experiment with AI tools. This drives awareness, removes anxiety, and fosters innovation.

The Path Forward

As we navigate this AI-driven transformation, the key is to focus on creating a powerful partnership between humans and AI, not replacing one with the other. It's an exciting time to be in this field, full of challenges and opportunities.