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WhatGenerativeAIMeansforYourTalentStrategy
byHelenPoitevinandPieterdenHamer
ExcerptfromGartnerBusinessQuarterly3Q23
TheacceleratedinvestmentingenerativeAIhasunsurprisinglyledtoconcernsabouthowthistechnologywillaffectjobs,
includingthoseoncethoughtimpervioustoautomation.Someroleswillceasetoexist,whilemanyotherswillchangeradically,
encompassingnewtasksandrequiringnewskills.Facedwith
apotentiallyhistoricdisruption,executiveleadersshouldshapetheirtalentstrategiesusinganewframeworkforunderstandinggenerativeAI’simpactontheworkforce.
AIapplicationshavebeenaffectingworkersforyears,butthistimefeelsdifferent.
Duringthelate2010s,fewexecutiveleaderswouldclaimpubliclythatlayoffswerein
anywayduetoinvestmentsinAIorautomation.Theywouldusuallysaytheyidentifiedimpactedstaff,retrainedthemandshiftedthemtootherroles.Today,however,as
useofgenerativeAItoolssuchasChatGPTspreadsrapidly,leadersaremorewillingtoexplicitlycalloutAIasoneofthereasonspositionswilldisappear—whetherthetechnologyistrulytheculpritornot.1,2
2ExcerptfromGartnerBusinessQuarterly3Q23
AssessImpactWithinYourBusinessContext
GenerativeAIwillaffecteachorganizationdifferently.Executiveleadersmustconsider
theirenterprise’suniquesituationastheyanticipatetheeffectsofthistechnology(andAImorebroadly)ontheworkforce.MostavailablemodelsformeasuringautomationriskfromAIanalyzeonlyexistingrolesandestimatethepotentialforAItoreplacecurrent
employees.Whilethesemodelshavemerit,theyomittwoimportantfactorsinanyexecutiveleader’stalentdecisions:
•Demanddriversshowwhetheryourorganizationshouldscaleupproductsandservices,scalethemdownorholdthemsteady.
–Talentimpact:Futuredemandforspecificcapabilitieswithinyourorganization,industryorbroadermarketwilldeterminewhereyouinvestintalentand
technology.Demandalsoaffectsyourabilitytomeetyourtalentneeds:Sought-afterworkersarehardertoattract,andlow-demandjobsbecomelessdesirableandmorechallengingtofill.
•Technologydriversrelatetohowyourorganizationimplementsandusestechnology.Theyaffecthowyouorganizeworkwithinandacrossteams.
–Talentimpact:OrganizationsadoptinggenerativeAIwilldesignrolesandworkflowsdifferentlydependingonwhattheyareusingitfor.Executiveleadersmustalso
accountforthecombinationsofskillsavailablewithintheorganizationandthewiderlabormarket.
GenerativeAIwilldirectlyaltertaskssuchascontentcreation,questionanswering
anddiscovery,translation,documentsummarizationandsoftwarecoding.Buthow
itwilltransformindividualjobsismorechallengingtopredict.Forexample,knowing
generativeAIwilldisruptcopywritingandcustomersupportdoesn’ttellyouwhatit
meansforthepeopleprovidingthoseservicesinyourorganization.Yourbusiness
contextwilldeterminewhetheryouusethetechnologytomaketheseemployeesmoreproductive,phaseoutjobsthatcanbedonebymachinesorreconfiguretheseroles
toprovidenewtypesofservices.
ThefollowingstepswillhelpexecutiveleadersidentifytheimpactofAIontheir
organization’sworkforceandadapttheirbusiness,talentandtechnologystrategiesaccordingly.
3ExcerptfromGartnerBusinessQuarterly3Q23
Step1:ForecastDemand
First,examinehowyouexpectdemandforagivenproductorservicetochange,basedonforecastbusinessconditionsandcompanystrategy.Applythisexerciseattheenterprise,
businessunit,departmentorteamlevel,andforboth
internal-andexternal-facingservices.Thishelpsclarify
howmuchagiventeamwillneedtodeliverinthefuture.
Demandforaproductorservicecouldbe:
•Increasing/High—Anoffering’ssuccessisdrivinga
markedriseindemand,withhighgrowthtargets.This
demandmayalsobeforaparticularcapability—suchasAI,softwareorotherdigitaltechnologies—thatneedstoscaletoanincreasingnumberofdomains.
–Examples:Medicaldiagnostics,softwareengineering,AIdevelopment,promptengineers
•Stable/Core—Volumeandfutureevolutionare
predictable,possiblywithsomevariabilitylinkedtoseasonalityorsimilarfactors.Therearenoplansforeitherhighgrowthorphasingouttheservice.
–Examples:Payrollservices,customerservice
supportingstablemarkets,internalITservices,insuranceclaimsprocessing
•Decreasing/Low—Theserviceorproducttargetsa
nichemarketorisbeingphasedout.Ongoingsupportisrequired,buttherearenoplansforinvestingfurthertotryscalinguptoabiggeroffering.Thisincludes
instanceswhereacompanycontinuestoserveexistingcustomersforaproductorservicebutnolongeroffersittonewones.
–Examples:Legacyproductsnolongersoldbutwithmultidecadecontractsthatneedtobehonored;
nicheproductssuchasparametricinsurance
Step2:EnvisionAITechnology
Applications
Afterforecastingdemand,formulateyourfuturevision
forhowyouwillapplygenerativeAIandAImorebroadly.Thishelpsidentifythedegreeofimpactonagiventeamorrole.Willpeopleincertainjobsbereplaced?Willthey
neednewskills?Howcriticalwillitbeforaworker’ssuccessandcompetitivepositioningthattheyusegenerativeAIeffectively?
ConsiderwhatyourplannedapplicationsofAImeanforexistingprofessionsandindustries.
Youcould:
•Staywithintheirboundaries—Manyemerginguse
casesforgenerativeAIarefarfromtransformative.Forexample,arecruitercoulduseembeddedgenerativeAIfunctionalityinatalentsourcingtooltoautomatically
applysearchcriteriabasedonnaturallanguageinput,
withouthavingtomanuallyapplyfilters.Thischange
simplymakesanexistingworkpatterneasierandfaster.
•Gobeyondtheirboundaries—GenerativeAI,alongsideotherAItechniques,canchangehowpeopleaccess
productsandservices.Forexample,AIcanhelpcreate
webpages,videos,appsorothercontentquickly,withoutrequiringanytechnicalknowledge.Thiscapabilityallowsforafullypersonalizedcustomerexperience.
•Createnewboundaries—Autonomousbusiness,
inwhichAImanagesorcarriesoutthemajorityof
operations,hasalreadystartedtoemerge.Machine
customers,augmentedmanagersandautonomous
operationsarecentralfeaturesofthesenewbusinessmodels.Weanticipatethelaborratiotosubstantiallychange,withenterprisesneedingfewerpeopleto
generatethesameamountofrevenue.
4ExcerptfromGartnerBusinessQuarterly3Q23
BusinessContextandDemandVolumes
WithintheBoundaries:
PushingBoundaries:
BreakingBoundaries:
Shiftingrolesthroughautomation
Newlyconfiguredroles
Game-changingroles.
andaugmentationofexistingwork
throughtransformationand
Autonomousbusinesswith
patternsandtasks.
augmentation;newwork
patterns.
significantlylowerlabor-to-revenueratio.
ConsideraMatrix
ofAIFutures
Combiningthesedemandandtechnologyfactorscreatesarangeofsituations
(seeFigure1).Withineachorganization,andevenwithineachteam,multiple
casesarelikelytoapply.Foreach
situation,specificinvestmentsintalent
developmentandworkforceplanningwillhelpexecutivesleadtheirteamsthroughanAI-drivenwaveoftransformation.
WeexpectgenerativeAItohave
twobroadeffectsontheworkforce,
eachwithsignificantimplicationsfor
executiveleaders.
»Figure1:TalentImpactMatrixforGenerativeAIandAIMoreBroadly
LowAIImpactHighAIImpact
HowAIIsAppliedinIndustriesandProfessions
Increasing/High:
Scaleupandgrow
tomeetdemand.
Stable/Core:
Scalethroughefficiencyandproductivitygains.
ScaleUp:
ProductivitygoesupwithAIand
humansaccomplishingmoreworkwithlesseffort.Stillhiringtomeettargets.
ShiftandNotReplace:
Workshifts.Manyarenotreplaced,andmostcomplexworkremains.
Rolesmustbereconfigured,
oftentowardassistedmultiskilledgeneralistroles.
LastOnesStanding:
Hardtoattracttalentandlikelylosingtalent.Automationisanopportunitytomaintainservicedespitetalentshortage.
NewImpactLevel:
Highperformanceexpectationsinmanynewlyconfiguredroles,transformedthroughAIand
humanpartnership.
RunSmarter:
Increasedperformance
expectationsperworkerintermsofreachorimpact.Onlythose
whocanworkeffectivelywithAIremaincompetitive.
NicheInnovations:
Hardtoattractandfindtalentinhyperspecializedmarkets.Mayopenupsomenewmarketsthatcannowbeservedprofitably.
Symbiosis:
Machineeconomywithfewemployeescomparedto
impact,reachandrevenue.Topdesignteamsrequired.
Synergy:
Newpocketsmayemergeformachinecustomersandautonomousoperations.
Innovativeredesigned
teamsrequired.
Experiments:
Rare,butmicroniche
investments.Fewemployees.
Decreasing/Low:
Scaledownormaintainlowniche-styleactivity.
Source:Gartner
aDemandcanbeforinternalorexternalservices,attheorganization,businessunitordepartmentlevel.Itdrivesactivityvolumesandportfolioprioritization.
5ExcerptfromGartnerBusinessQuarterly3Q23
GenerativeAIWithin
theCurrentBoundaries
UsinggenerativeAIinthiswaywillresultintheshiftingofrolesovertime.Fewerpeoplewillbeneededto
completethesameamountofwork.MasslayoffsdrivensolelybygenerativeAIadoptionareunlikely,especiallyconsideringthatlabormarketsremainhistorically
tight.However,peoplewholeavejobsaffectedbythetechnologyarelesslikelytobereplaced.Employees
hiredintotheseroleswillbeexpectedtoaccomplish
higherworkvolumesmorequickly.Itwillalsobecomeincreasinglychallengingtofindtalentwillingtotakeonjobsthatautomationwilllikelydisplace.
ExecutiveleadersimplementinggenerativeAIinthiscontextshouldanticipateheadcountreductionsovertime.Theywillneedtoredesignjobsdisplacedor
disruptedbyAIintosmallernumbersofmultiskilledgeneralistrolesthatencompassawiderrangeof
capabilitiesandofferamorecompellingemployeevalueproposition.
6ExcerptfromGartnerBusinessQuarterly3Q23
GenerativeAIBeyond
theCurrentBoundaries
Second,usinggenerativeAItopushtheboundariesof
professionsandindustries,orevenbreakthem,willset
offaraceforperformance.Expectationswillbehigherin
newlyconfiguredroles,andorganizationswon’tbeable
tocompetewithoutusingAI.Thequestionwillbenot
whichtasksgotoAIandwhichtohumans,buthowpeoplecanuseAIcreativelytoreachnewheights.New,highly
specializedjobswillemergewheregenerativeAIand
relatedtechnologiesareusedcreativelyandstrategicallytotransformwhatteamsdoandwhattheirclientsexpect.Thisrequiresarichblendofbus
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