How to scale AI in the enterprise: start with work redesign

Artificial intelligence is often called a game-changer. Yet its true potential remains underhyped.

Underhyped? Yes, you read that correctly.

A study last year revealed that just under half of all working hours across industries could be impacted by generative AI. Banking stands at the forefront. 72% of working hours are potentially redefined by AI. Insurance, energy, and telecommunications follow closely. Even retail, travel, and healthcare see 40% to nearly 50% of working hours poised for AI-driven change.

This isn't limited to big business. As the CEO of Reejig, facing economic pressure, I had to reevaluate everything about how we got work done. In the past year, we transitioned from a traditional workforce to one that includes fixed employees, flex workers, and over 50 AI workers. This shift has saved us $1.6 million a month. We're more productive than ever.

Imagine the potential impact on a company with over 50,000 employees. AI is quickly becoming ubiquitous. It will be mainstream in every corporation within 24 months.

AI is not just an addition. It's a once-in-a-generation catalyst. It will reshape work as we know it.

The AI readiness gap

Despite AI's potential, most businesses are not prepared. The organizations that stand to benefit most often face the greatest challenges. They struggle with foundational issues. Lacking infrastructure, governance, and a clear starting point for integration. Leaders also need to radically overhaul their mindset. Many are stuck in dogmatic routines and outdated systems that no longer deliver results.

Many early AI approaches promised silver bullets. They fell short due to poor design and lack of practical application. Business leaders are hesitant and uncertain about where to begin. In my conversations with CEOs around the world, from emerging midsize scale-ups to global enterprises, the pressure is clear.

If I automate chaos, I just scale the chaos.

The CEO's dilemma

CEOs today face a paradox. There is immense pressure and allure to adopt AI. They want to boost productivity and remain competitive. For good reason. Klarna reported that its AI assistant will deliver an additional $40 million in profits this year. Daily Harvest reported improved customer service and business outcomes through AI-supported operations.

Yet CEOs also fear failing to implement AI effectively. They worry about being surpassed by more agile competitors. We've stumbled into a new world where change is constant and faster than ever. The most developed organizations still rely on dated change management processes. They use multi-layered bureaucracy. On top of this: the lowest worker productivity rate on record. And the largest aging workforce in history.

This dilemma calls for a circuit break. A new strategic approach to AI adoption.

The imperative of understanding work

Successful AI integration requires a deep understanding of work. There is a lot of fuss about how AI will replace people. But the relationship between AI and people is actually tangential.

You don't automate people's skills. You automate tasks. When business leaders think about this shift, they first need full visibility of their work. Down to the task level. They need the requirements for those tasks. And the AI or automation opportunity for each one. That's Work Context.

Then, redesigning how work is orchestrated means recognizing that workers can be employees, flex workers, or digital workers. This requires a nuanced approach. Tasks must be allocated efficiently across different types of workers.

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

Traditional operating systems have long been based on job titles and jobholders. They lack visibility into the true nature of work being done. This obscures the true skills and potential of employees.

In reflecting on my journey with Reejig, the change we've undergone is a testament to AI's potential. By adopting a flexible workforce model with AI workers, we enhanced our operational efficiency. We also created a blueprint for others to follow.

Your once-in-a-generation opportunity

The era of AI-augmented work is here. Its potential is vast. The journey is complex and challenging. But the path forward is clear. Understand work. Orchestrate it intelligently. Lead with vision and integrity.

Now is the opportunity to design a workforce that is efficient and productive. Free people to do the most meaningful work. Don't waste that moment.

This article was originally published on Inc.com on June 23, 2024.