The capability crisis is already here: a wake-up call for workforce leaders

Recently, on a 26-hour flight from the USA to Sydney, I lay wide awake. My mind raced. I was deeply engrossed in thoughts about recent conversations with industry leaders and customers. In the last 8 days, I collaborated with business and workforce leaders from diverse industries. We engaged in strategic thinking to solve their challenges.

• Updating workforce capabilities for evolving business needs is essential for staying competitive.
• Integrating new technologies effectively in business operations poses a significant challenge.
• Digitalization in manufacturing brings both opportunities and challenges. Especially in workforce adaptation.
• Diminishing job prospects for university students due to technological advancements need solutions. Building new capabilities and a focus on emerging fields are critical.

40,000 feet in the air, I realized. We are not heading toward a capability crisis. We are already in it.

AI has been described by many as more transformative than electricity or the birth of the internet. It's having sweeping socioeconomic impacts. Before people even know of its existence. The technology advances at an unprecedented rate. Combined with existing global workforce challenges and capability shortages, this has propelled us into a full-blown crisis. We've sleepwalked into a new era of work. Automation has been moving at lightspeed in the background. Our collective response has been more discussion than tangible change.

I found myself wondering about the people on this plane. How many would be affected? What would it mean for them and their families?

My thoughts turned to my daughters, Tierna, age 9, and Indie, age 5. I wondered about the jobs they would do in the future. Or if traditional work would even be part of their lives. Each new generation shows increased appetite for flexibility and non-linear careers. Would they find purpose and fulfillment from work as I do? What would they study to be prepared?

And what were the implications of technology performing better than a human in a role?

Questions raced through my mind. Drawing from decades of experience as a workforce strategist, I felt sure of one thing. We face a crisis for which we are utterly unprepared. In the last four years, workforce leaders have been thrust to the forefront. They've become pivotal in navigating uncharted waters.

Every enterprise is deploying AI. Almost none can see the work they're deploying it into.

And I reflected on my role as a CEO in this crisis. A spark went off.

I see an incredible opportunity. Especially in my own business. To fully adopt AI. I also believe my role has become more vital now. We must build new capabilities across the world's workforce. No one is left behind.

With my perspective on global workforce strategy and Ethical AI, I have the privilege of engaging with top leaders globally. I work alongside companies as they pioneer workforce redesign. With these insights, I create a community. One of knowledge-sharing, experimenting, and a safe space. To troubleshoot failures and celebrate wins.

It is the very core of what makes us most human. Our connection with one another. The power of collective curiosity and ambition. That will pave our path through the capability crisis.

I'm going to dive in headfirst. Share the entire journey with you. Warts and all. But first, let's level set on the facts.

The experts all point to a resounding "yes"

Goldman Sachs predicts a 7% global GDP increase over the next 10 years from generative AI. But this comes with a significant caveat. The potential automation of 300 million full-time jobs. You read that right. About two-thirds of US occupations are at risk of augmentation. A quarter of jobs could be replaced entirely by AI. The imperative for adaptability and building new capabilities is more crucial than ever.

This crisis impacts workers across all sectors. From desk-bound roles to deskless and frontline workers. It creates a wave of displacement we are not yet prepared to handle.

We've spent a decade pushing people toward careers in technology, legal, and accounting. All now vulnerable to AI. We are underestimating generative AI's transformative power. We are not properly preparing our future workforce. A study this year revealed only 4 out of 10 college graduates said their education prepared them for the work they needed to do.

What if Goldman Sachs is right? How will 300 million people survive? Is a universal minimum wage a necessary step forward? If so, who will fund it?

Interestingly, the jobs most protected from automation are those we've historically undervalued. Nursing and teaching. These require advanced human capabilities. Empathy, interpersonal communication, and foundational education. As we navigate this shift, a supply-demand gap for these capabilities will force us to reassess how we value these roles financially.

These are real problems. Steamrolling ahead as I type this. We are not implementing answers fast or widespread enough. They impact the most vulnerable populations at a disproportionate rate.

AI capability is compounding. Work visibility is not.

The capability crisis impacts people, business, and society

The capability crisis touches nearly everything we know about modern life.

For people

• Wages. The rise of automation impacts lower-wage jobs. Without safeguards, low-income workers' standard of living will suffer.
• Technical capabilities. Not everyone has equitable access to education. The technical capabilities they need remain out of reach. In school and on the job.
• Human capabilities. In an era where AI is ubiquitous, we must each develop capabilities for an increasingly automated world. Adaptability, creativity, critical thinking. We must also nurture capabilities that cannot yet be automated. These may be in short supply.
• Careers of the future. Transparency in career trajectories is more vital than ever. We must guide individuals toward roles that will be in demand.

For businesses

• Workforce planning. Companies must deeply understand the composition of their work. Analyze the tasks that make up their operations. This knowledge is crucial for diagnosing where AI creates value.
• Competitive advantage. Companies that don't adopt AI risk falling behind. AI-integrating competitors increase production or lower prices. Pay scales must adjust to attract and retain critical capabilities.
• Workforce DNA. Businesses must integrate a diverse mix. Fixed employees, flex workers, and AI-assisted digital workers. This bridges capability gaps and adapts to changing needs.
• Building new capabilities in employees. The rapid evolution of job requirements demands a proactive approach. Learning and capability development must be engaging. Relevant to future demands.
• Corporate social responsibility. With AI, companies face the challenge of avoiding biased decision-making. Especially in hiring, promotions, and managing change. Businesses must actively ensure fairness and integrity. This requires Ethical AI.

For society

• Economic inequality. As automation displaces certain roles, it widens the gap between those who adapt and those who can't. Governments and institutions must invest in capability development infrastructure.
• Education systems. Traditional education struggles to keep pace with work changes. We need new models that prepare people for dynamic, AI-augmented careers.
• Social contracts. The relationship between employers, workers, and society is being renegotiated. We need new frameworks that ensure dignity and opportunity for all.

From Job Architecture to Work Architecture.

What we do next matters

The facts are confronting. But inaction is worse. We need leaders who understand that workforce redesign is not optional. It is the most important work of this decade.

The Work Operating System makes work visible at the task level. It shows where AI fits, where people pivot, and how to redesign without leaving anyone behind.

If I automate chaos, I just scale the chaos.

This isn't just a business problem. It's a human problem. And it demands human leadership.

Siobhan 💜