AI And Automation May Power Companies Through A Sour Economy, But There’s More To The Story

Lately, there has been no end to pontificating about a possible economic downturn. Who really knows, right? In the event the economy did droop, companies may think twice about staffing, but they would ramp up their technology spending, especially for artificial intelligence and automation. At the same time, the companies that blend human talent with digital prowess are the ones that will excel through a choppy economy. Talent matters, but it requires a new type of workplace — welcome to an increasing “world without jobs.”

That’s the gist of a recent survey of 13,300 business leaders by Mercer Consulting, which finds 57% of business leaders would increase their use of AI and automation in the event of an economic downturn. Only 26% would put a pause on digital transformation. This suggests that even in a sour economy, there remains an abundance of opportunities for those skilled in technology delivery to their businesses.

Despite nervousness about the economy, talent attraction and retention remain top of mind for executives, with 50% anticipating that their organization will struggle to meet demand with their current talent model. One-third are seeing higher-than-expected turnover in employees with digital skills — such as front-end programming frameworks, Java-based APIs, database, and data science skills. Non-technical skills needed to move forward include “a growth mindset, people development, and resilience,” the survey report’s authors state.

“As they seek to embrace ‘new-collar’ workers who acquire both technical and soft skills together, it will be important for organizations to see themselves as skill developers and certifiers, not just skills movers,” the study’s authors state. “It requires managers to be ready to embrace workers that do not have the typical background and experience.”

Forty-one percent agree that the fundamental shift that occurred over the last three years — starting with the response to the Covid crisis — required “a complete reset around work, the workforce and the workplace.” This tops their agendas, along with 39% agreeing that they need to increase their digital capabilities to compete. A majority of the fastest-growing firms in the survey focused on supporting flexibility, as well as repurposing facilities for more digitally led hybrid working. Close to half adjusted their talent strategies to attract freelance and other non-traditional talent.

There’s much greater autonomy in work as well — 78% of employees say they feel empowered to work with minimal oversight, up from 64% in 2020. The ongoing flattening of organizational hierarchies means opportunities to “enhance connectivity and communication, accelerate digitalization, and build adaptive capacity.”

The challenge is to “design work and working to unlock motivation,” the authors continue. “Engage talent in the design of their work. Consider each person’s true value-add and how automation and work design can maximize the return on their time and enhance their work.”