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Exploring The Impact of Artificial Intelligence (AI) On Human Resource Management (HRM)

This document provides an overview of a project exploring the impact of artificial intelligence (AI) on human resource management (HRM) across several industries. The project was conducted by a team of LSE Master's students in collaboration with Oracle. It defines key AI concepts and analyzes case studies and expert opinions on AI's current and future impact on HRM in the logistics, healthcare, retail, and finance/banking industries. The document outlines the project timeline, methodology, and agenda to be covered.

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Jags Bhai
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0% found this document useful (0 votes)
121 views

Exploring The Impact of Artificial Intelligence (AI) On Human Resource Management (HRM)

This document provides an overview of a project exploring the impact of artificial intelligence (AI) on human resource management (HRM) across several industries. The project was conducted by a team of LSE Master's students in collaboration with Oracle. It defines key AI concepts and analyzes case studies and expert opinions on AI's current and future impact on HRM in the logistics, healthcare, retail, and finance/banking industries. The document outlines the project timeline, methodology, and agenda to be covered.

Uploaded by

Jags Bhai
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 26

Exploring the Impact of Artificial Intelligence (AI) on

Human Resource Management (HRM):


A Cross-Industry Analysis

Lorenzo Milani, Dario Rahmati, Rizky Nurakbarianti & Philippe von Klitzing
London School of Economics, January 25th 2017
Project Genesis: bringing academic tools with real life case studies to help Oracle better understand the impact of AI

LSE Master’s in Management students with diverse backgrounds


Team 1
and cross-industry experience

! Key definitions of Artificial Intelligence (AI), state of technology


Scope 2 ! A qualitative and quantitative insight
! Case studies and industry expert reflections

! Current analysis on the exposure of four industries to AI:


Outcomes of Logistics, Healthcare, Retail, Finance/Banking
3
the Project ! An independent view of industry experts on AI’s current and future
impact on HRM

1
Methodology: timeline, sequences and tasks of our project with Oracle on the impact of AI on HRM

October ‘16 – November ‘16 December ‘16 January ‘17


November ‘16
Project
Timeline

1 2 3 4 5 6
Background
Definition of scope Sector research Cases Field work Analysis
Sequences & Tasks

research
Learning around the Defining the scope Looking deeper into Evaluating AI per Aggregating primary Reviewing fieldwork
technology, gaining of the project and role of AI in each sector by finding and secondary results and industry
understanding on creating the overall sector & gathering real life and current information and analysis under
technicalities and structure in agre- information through cases where AI has establishing trends management
laying foundation to ement with Oracle various published been employed theories, connecting
build the project resources and 1-1 the concepts with
interviews the overall findings
Case & Sector

Sectors researched:
Analysis

! Logistics
! Healthcare
! Retail
! Finance & Banking

2
Agenda

I. State of Artificial Intelligence (AI) today

II. Literature Review: AI in the context of Innovation and Human Resource Theories

III. Case Studies


A. Finance/Banking
B. Healthcare
C. Retail
D. Logistics

IV. Future Trends & Recommendations

V. Appendix: Interviews

3
State of Artificial Intelligence (1/2): an old concept being revived by business opportunities

1 Overview 2 Applications

Artificial Intelligence (AI)

• System that thinks and acts like humans and Embedded in a product or service to provide end-
rationally (Russell & Norvig, 2009) customer benefits, e.g.,
• Narrow AI: ability to do selected set of tasks
• General AI: general human intelligence
Product Netflix uses machine learning to predict
• Super-intelligent AI: intelligence exceeding human which movies a customer will like !
capacity accounts for up to 75% of Netflix usage

Brief History Embedded in an organization's workflow to


automate or improve operations, e.g.,
• 1950s: appearance of the AI field
Process Ub
Uber’s driverless cars and trucks can
• 1970s-1980s: stagnation due to excessive expectation
• Since 2012: New wave of AI reduce risks to human drivers and cut
redu
costs
cost
• Investment tripled from ~$700 million in 2013 to
~$2.4 billion in 2016
Uncover insights that can inform operational and
strategic decisions across an organization, e.g.,
Why the new wave of AI is different
Insight Facebook uses neural networks to gather
• Decreasing cost of computing power and technology information and insightfully categorize
• Trend towards Big Data and cloud computing users for targeted advertising purpose
• Better algorithms, e.g., deep learning

4
State of Artificial Intelligence (2/2): AI transforms society and the business environment

3 Wide impact 4 An emerging ”AI Economy”

Japanese insurance company, Fukoku Mutual Life Work directly with advancing
Insurance, replaces 34 members of its claims assessment Develop human- or life-like AI, e.g., AI technology, including
team with IBM Watson software emotion and feelings recognition, deep learning, predictive
augmented reality, robotics APIs, and Image and
KFC launches first AI-enabled outlet in Beijing to create
speech recognition.
more innovative and interesting dining experiences
Rethinking Humans
Nissan will use AI technology from NASA for their cars Core Technologies

In comparison to the Industrial AI Business


Transfor- Revolution: Landscape
mation of ! ~10 times faster
society ! ~300 times the scale
! ~3000 times the impact

Rethinking Industries Rethinking Enterprises

Prediction of Use AI to change operations and Leverage machine


! Reduction of employment cost
“annual the way products and services are intelligence to build smarter
by $9 trillion due to AI-enabled
creative delivered to customers business solutions
automation of knowledge work
disruption
! Cost reduction of $8 trillion in
impact” by
manufacturing and health care
2025

5
Agenda

I. State of Artificial Intelligence (AI) today

II. Literature Review: AI in the context of Innovation and Human Resource Theories

III. Case Studies


A. Finance/Banking
B. Healthcare
C. Retail
D. Logistics

IV. Future Trends & Recommendations

V. Appendix: Interviews

6
Literature review (1/3) – AI: human intelligence can be so precisely described that a machine can be made to simulate it

Artificial Intelligence: mimicking human thinking and behavior

Human performance Rationality

! "The exciting new effort to make ! "The study of mental faculties


computers think like machines with through the use of computational
minds, in the full and literal sense” models” (Charniak & McDermott,
(Haugeland, 1985) 1985) Artificial
Thought
Intelligence
processes
& ! "[The automation of] activities that ! "The study of the computations that
reasoning we associate with human thinking, make it possible to perceive, reason,
activities such as decision-making, and act” (Winston, 1992) Psychology
problem solving, learning ...”
(Bellman, 1978)

! "The art of creating machines that ! "A field of study that seeks to explain Mathematics
perform functions that require and emulate intelligent behavior in
intelligence when performed by terms of computational processes”
people" (Kurzweil, 1990) (Schalkoff, 1990)
Behavior
! "The study of how to make ! "The branch of computer science Philosophy
computers do things at which, at the that is concerned with the
moment, people are better” (Rich & automation of intelligent behavior”
Knight, 1991) (Luger & Stubblefield, 1993)

(Source: School of Computer Science, Carnegie Mellon University)


7
Literature review (2/3) – When Theory of Innovation meets Artificial Intelligence

Innovation theory provides a framework to identify rationales behind the adoption of AI by companies

" “Innovation is a process of industrial mutation that incessantly revolutionizes the economic structure from within, destroying the old one
and incessantly creating a new one” (Sledzik, 2013)

1
Four categories of " Product innovation; Creation of new types of products and
innovation " Process innovation; machines that perform narrow tasks,
(Tidd, Bessant & " Position innovation; Product
automation of manual processes #
Pavitt, 2001) " Product paradigm. autonomous vehicles
2 Delivering better customer service at
" Disruptive innovation:
creating a new value lower costs # AI learns about
proposition; Artificial Process customers and augments the
" Radical innovation: Intelligence capabilities of humans, virtual
Innovation & consumers benefit from a assistance
Competitive
product with higher quality; 3 Making use of unstructured data, seeing
Advantage
" Complex innovation: patterns in data that are not visible to
(Tidd et al., barriers to entry remain
2001) Insight humans # fraud spotting in
high; insurance, imaging analysis in
" Incremental innovations: healthcare
continuous movement of the
cost/performance frontier.

Companies that adopt AI now gain a competitive advantage: achieve operational efficiencies
well before others even have the chance to play catchup

8
Literature review (3/3) – AI in the context of HR theories defines a framework to understand workforce transformation

Core Competence Theory Knowledge Management Framework Organizational Memory Theory


(Hamel and Prahalad 1990) (Collison and Parcell 2001) (Walsh and Ungson 1991)

$ Firm competitiveness derives from building $ Although the implementation of AI can be $ Knowledge Management can foster the
the Core Competencies. seen as a “quick fix”, the shift in knowledge creation of Organizational Memory in
and skills required by the workforce order to store important knowledge for
$ With the emergence of AI, Core creates a new work environment. current and future decisions.
Competencies for many businesses shift to
acquiring and best implementing new AI $ Knowledge Management practices can foster $ The workforce will contribute to this
technologies for their needs. the creation of relevant skills and “database” and grow because of it,
knowledge to enhance the workforce in leading to a more specialized,
$ Although AI can be imitated by competitors, implementing and working with the new AI knowledgeable and highly skilled
it becomes a Core Competence in the way it technologies. workforce.
becomes implemented and integrated in the
business and in the workforce. $ The efficiency improvements granted by $ AI technology will aid in the formation of
AI technologies will allow more this “collective memory” as knowledge
$ Therefore, as a result of this, there is a employees to focus on capturing new and tasks become more easily
change in the skills and knowledge required knowledge, which will support accessible.
by the workforce. differentiation.
$ Furthermore, as the technology develops,
AI can itself become a depository and
user of this idiosyncratic knowledge.

AI implementation as a The framework shifts to


1 Core Competence 2 knowledge-based practices
Collective knowledge of workforce
3 and AI becomes firm idiosyncrasy

9
Agenda

I. State of Artificial Intelligence (AI) today

II. Literature Review: AI in the context of Innovation and Human Resource Theories

III. Case Studies


A. Finance/Banking
B. Healthcare
C. Retail
D. Logistics

IV. Future Trends & Recommendations

V. Appendix: Interviews

10
FINANCE Case Study (1/2): AI responds to a need to pursue lower costs and increase in the usage of data…

Challenges & Drivers in Finance Examples of AI used

Processing ! Accenture study reports a record high $22 Billion figure for global A series of AI-backed chat bots
power ! investment in Fintech for 2015 that can handle conversation
1 and assist bank customers with
Cost " ! Overwhelming amounts of data and information require computer
Data ! aid as success relies on speed, accuracy and volume capability day to day activities.

! Young and mid age demographic are more comfortable with mobile
The Tech and tech which is exactly who financial institutions are targeting
2 ! This demographic trusts tech companies and technologies such as
Generation AI based financial search
AI more than banks engines that gather data and
use NLP and other AI
! Cost reduction in processes that are “people-heavy and content-
light”, a description that fits well with bank tellers technologies to interpret and to
Cost ! A 40 man-hours financial analysis done by highly paid financial create meaningful information
3
Reduction analysts with average salaries around $350,000 within few for investment decisions.
minutes through its AI analytic engine

Using AI to screen applicants


based on profiling and various
Workforce ! Report by Citigroup which estimates FinTech to cause job loss of behavioral and image analysis
re- 1.7 million or about 30% of current headcount to be cut by US and to spot the perfect candidate for
modeling European banks by 2025 due to substitutions by technology. a specific job. They aim to
and ! Growth of mobile and online banking which has led to reduction of reduce bad hire losses and
down- branches and ultimately the headcounts, as transaction based increase HR efficiency.
sizing function of on branches changes to advisory and consultation.

11
FINANCE Case Study (2/2): …and its impact on HR seems to be important in the long-run

There will be long term reduction in


Example: Goldman Sac hs (GS) looks now more like a tec h
headcounts which leads to lower staff
Changing the company rather than a bank. 30% of GS employees ar e
costs but more investment in IT and
Key takeaways from interviews and field research

1 shape of work engineers and progr ammers, a level similar to Fac ebook and
therefore higher IT costs plus increased
larger than payroll of Twitter (Business Insider, 2015)
high skill IT workforce.

AI’s ability to analyse and process high


AI caused job loss “AI may be able to spot correlation but that is not
volume of data makes no human counterpart
2 not limited to low enough to infer correct decisions as the relation may
skilled jobs
able to compete, which can mean
not be causative ” – Danny Rohde EY RPA Lead
substitution for high paid analytical tasks.

AI can learn about the best employees


“Unconscious bias is one of the challenges in finding the
profile and screen thousands of
AI’s impact on right talent and AI has the potential to change that and
3 applicants quickly and spot the right
recruitment increase the chances of finding the right candidate” – Cindy
candidates, potentially reducing
Mahoney Head of Talent Management at CityHR
turnover and recruitment costs

McKinsey’s report in 2013 “Change management is key in next few years as companies will
…reshaping the suggests 110 million full-time automate and r emove people from work flows, ther efore understanding
4 skills sets needed workers to be displaced as a the phases, where the impact lik ely to be and having concrete plan is
in this industry result of AI and robotics key to retain people within or ganization for new roles which is the cost
banking by 2025. effective way.” – David D’Souza Head of Engagement CIPD

(See Appendix for complete interviews)


12
AI in Finance

AI in Finance

AI Assistants/ Bots Predictive Analytics Credit Scoring HR

Fraud Detection Search Engine Market Research Quantitative Trading

13
HEALTHCARE Case Study (1/2): AI responds to rising demand & costs of supplying healthcare…

Challenges & Drivers of Healthcare Examples of AI used

Increase in ! More chronic diseases that were once fatal (e.g. HIV/AIDS); Analysis of unstructured data
demand diseases related to Western lifestyles (e.g. diabetes) (e.g. symptoms, medical
1 records) to help clinicians in
for ! Ageing population: the population aged 65 or above in Europe is
healthcare projected to rise to 224 million by 2050 developing treatment plans
with the highest probability of
! Patient-centered healthcare: diagnosis, drugs to devices will be success
Quality of custom designed to integrate into a patient’s daily life
2 Using big data and
healthcare ! New treatment methods with better outcomes result in shorter
algorithms, the drug
admissions discovery process is reduced
and improved
! Expensive new technologies and treatment methods: the health
benefits that are subsequently realized are diminishing compared Virtual medical assistants
Rising
3 to the associated costs analyze symptoms, give out
costs
! The global shortage of medical workers and allied a list of possible diagnoses,
health professionals drives up the costs of healthcare provision and guide users toward next
steps for their care

! Wearables can constantly collect data, which serves as the basis The combination of AI and
of the medicalized quantified self precision medicine can
Increased ! Digitized and decentralized doctors: improved connectivity and predict what will happen
need for miniaturized diagnostic technology means accessibility and within a cell when DNA is
tech- convenience for future medical consultations altered by genetic variation,
nology ! Medical robots and AI create more efficient healthcare platforms whether natural or
that are powered by the insights of data analytics therapeutic
(Source: CBInsights, IBM, Google DeepMind)

14
HEALTHCARE Case Study (2/2): …but its impact on workforce and HR remains limited

“[AI technology] has not yet been applied “So far AI has not entered wide scale use and so
The use of AI is enough to be able to assess its impact” its’ true impact [on workforces] is yet to be
1
still limited Dr. Christian LOVIS, Head of Medical understood” – Guy MARTIN, Clinical Researcher for
Key takeaways from interviews and field research

Information Services, University of Geneva Google DeepMind Health

“AI is not going to lead to wide scale job losses.


AI will only “AI will impact domains strictly limited by
In areas which involve studying digital images
2 impact specific intellectual expertise and without direct
there may be scope for some replacement” – Guy
tasks contact with patients” – Dr. Christian LOVIS
MARTIN

““I don’t see an impact in a 5 years’ “The use of AI will have [a] limited impact upon recruitment
AI’s impact on visibility. It will and has already but there will be a need for IT professionals to support
recruitment
3 impacted education, but this is more in AI, which may be difficult to recruit given their shortage,
processes is
simulation than in AI” – Dr. Christian and subsequent demands on pay and conditions” – Guy
growing…
LOVIS MARTIN

…reshaping the “Skills include technical learning to “We may need to ensure that people do not over-depend
skills sets better use the decision supports, and on technology, and use any new technology to augment
4
needed in this skills to tackle legal/ethical issues” – and improve existing medical knowledge rather than
industry Dr. Christian LOVIS replacing them” - Guy MARTIN

Important According to Guy MARTIN, remaining barriers include:


barriers may still ! Technological barriers: “be that from a hardware/software point of view within healthcare”
5
need to be ! Ethical and legal barriers: “data sharing and use of such data, safety and clinical regulation
overcome ! Professional barriers: “clinicians are cynical of technology & anything that tells them what to do”

(See Appendix for complete interviews)


15
AI in Healthcare

AI in Healthcare

Healthcare Research Medical Imaging Drug Discovery Virtual Assistants

Wearables Lifestyle Management Mental Health Hospital Management

16
RETAIL Case Study (1/2): AI offers solutions to the changing competition and consumer’s demand in the industry …

Challenges & Drivers of Retail Examples of AI used

! Customers have increased availability and accessibility to IBM Commerce Insights and Watson
Customer information Order Optimizer monitor information
1
expectation ! As a result, they demand unforeseeable level of personalization in (e.g. weather) purchase rates and
terms of products and services offering consumer behavior, to generate
optimal inventory plans that meet
! Retail value chains has become more complex and variable,
Complexity customer requirements and avoid
especially as retailers grow bigger and expand globally
2 in supply
! Overseeing logistics by considering the impact of many factors out-of-stocks
chain
(e.g. weather) can be time-consuming
The use of AI, machine learning and
! Retailers are increasingly integrating distinct channels – store, natural language processing to
catalogue, e-commerce, mobile – into one coherent customer interact with customers, respond to
Omni-
3 experience their queries and offer personalized
channel
! Consistency in terms of holistic, personalized experience must be recommendations
maintained across all sales channels

Incorporate AI into its website to


understand customers better by
! Forecasting algorithms and inventory optimizer can minimize looking at web behaviour, social
oversight function in supply chain management through analysis of
media posts, and in-store activity.
Solutions data at every level of supply chain, automatic monitoring of
offered by inventory, and matching demand trends with procurement Based on the gathered data,
AI ! AI-based platforms can gather and analyze data to provide customers received most appropriate
personalized and integrated customers’ digital and physical marketing contents.
shopping experience

17
RETAIL Case Study (2/2): … and there appears to be some impact of AI on the industrial workforce.

“Major retailers are already employing AI technologies or actively exploring them… AI adoption is in early
AI adoption is in
1 stages and most retailers are being quite secretive about their AI forays”
exploratory stage
– Carol SPIECKERMAN, President of Spieckerman Retail
Key takeaways from interviews and field research

“As with any disruptive innovation, there will be a transition period and current people-powered
Changes in processes will stay in place or be modified. Down the road, some jobs will go away, others will be
2 workforce created, but regardless, overall workforce reductions should absolutely be expected…” – Carol
SPIECKERMAN

! Inventory manager: less focus in planning resources allocation, and more focus in understanding
Implication on
and executing the optimal inventory plan generated by AI into action
3 supply chain
! Purchasing manager: leave AI to do the repetitive task of screening and ordering from suppliers, shift
management
more of their focus in making strategic and tactical purchasing decisions (River Logic, 2016).

“What AI does is help marketers focus less “We’re already seeing some retailers minimize or
Implication on on tedious day-to-day task and more on eliminate chief marketing officer roles for example,
4 marketers the bigger picture, delighting the customer” in favor of newly-created titles that focus on overall
– Harriet GREEN, General Manager of IBM customer experience” – Carol SPIECKERMAN

“Ultimately, then, a lot of the repetitive tasks in retail will “…require retailers to also re-think and
go away. And we’ll be looking for a totally different kind of upgrade skill standards for store-level
Implication on
5 individual to work in stores – dynamic, creative, employees … [The non-routine] tasks
sales assistant
expressive and outgoing” – Doug STEPHENS, founder of that remain, therefore, will require more
Retail Prophet skill” – Carol SPIECKERMAN

(See Appendix for complete interviews)


18
AI in Retail

AI in Retail

Real-time Product Targeting Location-based Marketing & Multichannel Marketing Real-time Pricing & Incentives
Analytics

Integrated Online & In-store


Conversational Commerce In-store Visual Monitoring Predictive Merchandising
Analytics

19
LOGISTICS Case Study (1/2): The current state of logistics and the implementation of AI…

Challenges & Drivers of Logistics Examples of AI used

Smart ! Smart glasses equipped with Augmented


Customer
! Satisfy customer demands and adapting to change in order to Factories Reality (AR) Technology (for Vision Picking) &
demands
1 achieve the maximum amount of customer satisfaction Optical Character Recognition (OCR)
and
satisfaction ! Customers today seek outstanding and very personalized services Technology in order to easily convert data,
into a digital format
New ! Shorter product life-cycles, greater variety of products, and ! Driverless vehicles, (i.e. forklifts and shuttles)
services ! Self-learning systems and digital identifiers
specialized services force businesses to adapt and react quickly
2 increasing for data, shipment and order sorting
! Increasing number of international links amongst companies lead
complexity
of networks to more complex logistics processes
Delivery ! Experimentation with driverless vehicles
technologies ! Drone technology # useful for batch size
! Global logistical initiatives seek to connect the world on a game-
Globa- changing scale – e.g. the One Belt One Road (OBOR) in China: one and on-demand delivery
lisation and ! However, drones are still inefficient in
3 the project is being developed over an area that covers vast parts
global
of Eurasia and includes 55% of the world GDP, 70% of the world meeting the demands of businesses
initiatives
population and 75% of the world energy reserves
Integration of ! Access of AI software via
AI with other smartphone to increase accessibility
! Need to respond to increasing efficiency, adaptability and scale technologies for employees and as a cost-saving
Increased ! AI systems are increasingly being used to fulfill these needs in solution (e.g. at Honda)
need & multiple ways, and the industry has already begun integrating new ! The Internet of Things (IoT) has
imple- technologies allowed many companies to keep their
mentation
! E.g. DHL believes that world supply chains are being transformed whole operations connected, including
of
at a core level by the deployment of AI systems both and the all their vehicles: monitor vehicle
technology
domestic and international level temperature, tire pressure, weather
conditions, traffic, optimal route, etc..

20
LOGISTICS Case Study (2/2): …and the impact on the Workforce and HR through the lens of two companies

One of the largest logistics companies Based in Switzerland, Seatrade International


in the world, DHL releases a yearly manages a vast network of logistics
Brief Overview
Logistics Trend Radar (LTR) detailing processes, including cargo shipment by sea, air
current and future trends in logistics transport and warehouse management

The 2016 LTR details new technological trends, “In my work the applications of AI technology are very limited
View of Artificial including specific AI that are being adopted in the (…) but we can recognize the use of AI in the management of
Intelligence industry as well as social and business trends that documents from other departments” – “We primarily use OCR
influence and are influenced by new technology. Technology” – Luca BRUZZO, Owner of Seatrade

“In our business the human element is fundamental, I believe


Many technologies in the logistics industry currently
Impact on the that our industry has a high need for personnel; [we adopted AI]
enhance worker capability and allow a more
Workforce for the economics of our businesses: we basically work with one
efficient allocation of time and resources.
less person” – Luca BRUZZO

New trends such as De-Stressing the Supply Chain and “Beyond the sorting of documents, the human element in the
How do HR negotiations of rates and logistics organisation is fundamental” -
Fair and Responsible Logistics require new creative
practices
skills. But ones such as On-Demand Delivery can put “Although bigger companies (…) try to lower cost by automating,
change?
stress on the workforce and a reactive HR framework. they actually have to hire new personnel” – Luca BRUZZO

The human element is still prevalent for working in tandem with AI innovations. Whether it is for a new socio-business
strategy or for negotiating with clients and partners, “soft knowledge” and intelligent “know-how” is required from workers
Key Takeaways
in order to tackle various and very specific circumstances (cultural, social, political) (Kowalski et al. 2012)
The time and scale of new logistics trends though can put pressure on HR and the labor market

(See Appendix for complete interviews)


21
AI in Logistics

AI in Logistics

Cloud Logistics and Internet Digital Identifiers and Low- Fair and Responsible and Smart
AR: Vision Picking
of Things Cost Sensor Technology Energy Logistics

Self-Driving Vehicles and Self-Learning Systems for Smartphone integration and


Logistics Marketplace
Drones Logistics On-demand Delivery

22
Agenda

I. State of Artificial Intelligence (AI) today

II. Literature Review: AI in the context of Innovation and Human Resource Theories

III. Case Studies


A. Finance/Banking
B. Healthcare
C. Retail
D. Logistics

IV. Future Trends & Recommendations

V. Appendix: Interviews

23
Future trends and Recommendations: AI’s true impact will be seen in the mid- to long-term

Key takeaways of the research 1


…but some industries already show some workforce
3 remodelling
" AI’s presence is increasing with better technological
capabilities & essentially changes the way we do
business and consume " AI is replacing and heavily enhancing low-skilled & repetitive
" AI is mainly implemented as a non-sentient artificial jobs that do not require emotional capabilities
intelligence (“Narrow” or “weak AI”) " At the same time, there is an increase in the need for
" Corporations seem to derive competitive advantage creative positions that “narrow AI” cannot replace (…yet!)
from the adoption of such technologies " New competitive strategies shift the focus of corporations
" Industries appear to be adopting AI on different towards more sustainable, more cost-efficient and flexible
grounds, creating idiosyncrasies that build their business models
industry-specific collective knowledge

4 Yet, some important barriers remain


AI is still at an experimental stage… 2
! Technological barriers: reliability of such technologies and the
" Human validation is still necessary because of high
underlying risk for stakeholders
economic and social stakes
! Ethical and legal barriers: data sharing and use of such data
" AI is not necessarily replacing the workforce but
and privacy, legal liability of AI-driven actions
merely changing the educational paradigm: some jobs
! Professional barriers: more heavily regulated that an industry is
need to acquire new technical and legal skills
the harder it is to sell a radical change in fundamental approach,
" We witness a shift of the workforce towards more
shortage of data science talent as the primary barrier to realizing
quantitative and computational jobs, pushing firms to
value from their big data technologies
re-train current workforce

24
Thank You & Acknowledgments

Thank you for listening to our presentation!

We would like to thank:


Oracle and especially Andy Campbell for the great opportunity to work on this project
Dr. Sandy Pepper for his assistance
Cindy Mahoney (Head of Talent Management at City HR Association), David D’Souza
Head of Engagement (Branches) at CIPD, Danny Rohde (RPA Lead UK&I at EY), Luca Bruzzo (Owner of SeaTrade International SpA), Dr.
Christian Lovis (Head of the division of Medical Information Services, University of Geneva), Guy Martin (Clinical Researcher Imperial
College London and Google DeepMind Health Researcher), Dominic King (Lead Researcher Google DeepMind Health), Harriet Green (IBM)
and Carol Spieckerman (CEO of Spieckerman Retail) for their precious insights

25

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