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Why Should Companies Invest 70% of Their AI Budget in Employee Training?
Is your organization focusing too much on algorithms and not enough on people? In this BCG podcast summary, Allison Bailey reveals why the “unsung heroes” of the AI revolution are human employees. Learn how to combine predictive and generative AI, build trust through responsible implementation, and redesign workflows to unlock 40% higher productivity.
Stop guessing how to implement AI and start empowering your workforce today. Read the full summary to discover the exact 10-20-70 investment rule that separates successful AI transformations from failed experiments.
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Tune into this episode of The So What from BCG podcast as host Georgie Frost talks with Allison Bailey, global leader for BCG’s people and organization practice, about the transformative potential of generative AI. Frost and Bailey provide valuable insights into how organizations can navigate the evolving AI landscape and stay competitive. As Bailey explains, to make the most of generative AI, companies need to focus on training their people, not just on using these new technologies. Organizations should also prioritize responsible AI implementation to build trust and ensure successful long-term use.
Take-Aways
- The human element is crucial for AI success in the workplace.
- Combining predictive and generative AI unlocks greater value.
- Build trust in AI through responsible implementation.
Summary
The human element is crucial for AI success in the workplace.
Companies need to focus on reskilling and upskilling their people to make the most of generative AI. Generative AI can significantly improve how productive and creative workers are, with some companies reporting up to a 40% increase in productivity — but this kind of advance only happens if employees know how best to use these new tools.
“As much effort as you’re putting into developing your algorithms and technology, you’ve got to put even more into the people side.” (BCG managing director Allison Bailey)
Companies will need to redesign jobs, create new ways of working, and develop skill-building programs to help employees adapt to new technology. Without these steps, companies won’t get the full benefits of their AI investments. For 80% of knowledge workers, AI is set to change how they do their day-to-day, on-the-job tasks.
For workers, the ability to learn quickly and adapt to technological innovations will become a prized skill. Soft skills, including creativity and collaboration, and specific types of expertise — such as deep learning and certain areas of engineering — will also be in high demand.
Combining predictive and generative AI unlocks greater value.
Many companies are currently engaging in experimentation with AI, but they’re not sufficiently considering how AI will create value and generate business outcomes. Organizations can unlock enormous value by combining predictive AI and generative AI. For example, predictive AI can forecast when a machine will need maintenance or repair, and generative AI can guide technicians, helping them provide those fixes more quickly and accurately. This combination of AI tools allows companies to reduce costs and provide better services.
“The more that we’re combining predictive and generative AI, the more unlock we’re seeing in organizations.” (Allison Bailey)
Putting AI to work requires a well-thought-out plan that includes both the technology and the people using it. Companies should aim to invest 10% of their AI efforts into developing algorithms, 20% into technology, and 70% into the people and process component. Leaders should encourage their people to experiment and should create safe environments for them to do so. They should also identify the areas where AI can make the most difference in their businesses and implement pilot projects. At the same time, they need to understand what new skills the company will need, where to find workers who can bring those skills to bear, and how technology will transform roles and responsibilities.
Build trust in AI through responsible implementation.
Building trust in AI involves using it responsibly and helping people get comfortable with it. Studies show that the more people use AI, the more they trust it. Safe sandboxes encourage experimentation and give people opportunities to develop familiarity with and trust in AI tools. Ensuring that employees feel comfortable with AI is essential for long-term success.
“We want people to trust things, but we don’t want to take the human out of the loop.” (Allison Bailey)
However, people should take a “trust but verify” attitude to AI, as these tools are prone to “hallucinations” — stating false information as fact. Leaders should ensure people maintain and exercise their critical-thinking skills, double-checking AI outputs. This balanced approach helps prevent problems and ensures that AI tools work effectively. Combining trust-building with careful use of AI is necessary to benefit more fully from these technologies.
About the Podcast
Georgie Frost is a prize–winning finance broadcaster and journalist. She’s host of the Daily Mail Online long-running This Is Money podcast. Allison Bailey is a managing director and senior partner at Boston Consulting Group. She’s vice chair of BCG’s people and organization practice and a former BCG fellow, researching digital education.