Why a Skill-based View of Work is Essential to Implement AI, Part 4

AI Landscapes: Redefining Commerce, Careers, and Communities - Article 4 of 8

The Opportunity Within the Workforce Challenge

One fundamental difference about the AI disruption is that it is happening against a backdrop of a stagnant workforce. The National Bureau of Economic Research reports that 62.7% of the workforce is participating, a drop from 66% twenty years ago. Workforce issues are commonly cited, such as difficulty hiring qualified workers, reduced capacity, obstacles to expansion, and productivity loss. These issues aren’t going away. We will need to learn to live with these new constraints.

The answer is found within the problem. Much has been written about the estimated efficiency gains that AI can produce. AI has also been found to be incredibly useful in speeding onboarding processes and helping staff perform at competency levels faster. AI implementation and workforce issues could mitigate each other.

We’re excited about this opportunity, and it has altered the way we think about this disruption cycle. Organizations have often responded to automation by eliminating some roles and hiring for new ones. We believe competitive advantage will increasingly accrue to those that help their existing workforce learn, unlearn, and pivot between roles.

The futurecasting process introduced in Part 2 helps us understand how work could change. A skills-based view helps us see where our people could fit.

What About Nick?

I want you to imagine a guy named, “Nick,” who works as a claims adjuster for a large insurance company. Nick is reliable; he shows up on time, doesn’t complain, and generally does a pretty good job. You have no issues with Nick.

Now imagine that leadership has decided to automate a substantial share of claims adjustment tasks with AI. If this is your reality, do you let Nick go? Absolutely not. It’s hard to find people like Nick, and considering the time and cost it takes to recruit and onboard someone else, who, let’s face it, is an unknown.

You have a lot of people just like Nick, and all of them can help your organization today and tomorrow, but perhaps in a different way.

Look at the Skills Behind the Role

So, what will we have Nick and his fellow claims adjusters do? The answer lies in assessing the current capabilities of our insurance underwriters and understanding the work environment: what does Nick actually do all day, and how does he spend his time? What skills make Nick and his cohorts good at being claims adjusters? Things like active listening, maintaining accurate communication, and ensuring quality information may all emerge through this process.

All of this can be uncovered using a skills-based view of work, as this graphic shows.

Furthermore, as we explore and further understand a skills-based view of work, we can start to see where these claims adjusters might fit into this new reality. Consider how these skills and understanding of core functions at your company could be transferred to other positions. Five years ago, it would have been unthinkable to migrate claims adjusters to QA testing roles in IT. Nick might not even be aware that the skills he applies daily could make him successful in other roles. Although this was always true, we now know how AI can support staff migration from one role to another in a way that wasn’t possible before. The technical knowledge of a role, like QA testing, can, in many ways, be performed by the technology. What is lacking is the business context and human skills that Nick can bring to the role.

Open New Possibilities for Your Workforce

We used to have people doing processes supported by technology. This required the people to have the technical knowledge. We’re moving into a world where technology will do the process and be supported by humans. This shift opens incredible possibilities for your workforce.

The job may change, but the person’s experience, skills, and understanding of your business still matter. A skills-based view helps you recognize that value and give employees a path forward.

Helping people make that transition also requires thoughtful communication and support. In Part 5, we explore how to incorporate change management into your AI implementation.

Thanks for reading. Let’s talk AI implementation. Send me a note at wade@batonglobal.com.

About Wade Britt‍

Wade Hampton Britt, IV is a partner and the Managing Director at Bâton Global. He has lived and worked in a dozen countries in the global express and edtech sectors before joining Bâton Global in 2016. Wade is passionate about helping clients and their communities navigate the AI disruption better than previous technological changes.

My sincere thanks to Mike Kritzman and his company, SkillNet, for being my partner in crime with all things skill-related.