New MIT Sloan Management Review and Boston Consulting Group research finds that organizations are much more likely to derive value from AI when their workers do, too
BOSTON, November 1, 2022 /PRNewswire/ — Despite the common perception that organizations are extracting value from artificial intelligence (AI) at the expense of the people they hire, and that AI-driven automation could lead to worker displacement, 60% of employees view AI as colleague, not a job threat. Additionally, organizations with employees who derive value from AI are 5.9 times more likely to see significant financial benefits from it than organizations whose employees do not derive value from AI, according to a report by MIT Sloan Management Review (MIT SMR) and Boston Consulting Group (BCG), which launch today.
The report Achieving Individual—and Organizational—Value with AI presents findings from the sixth annual research effort between MY SMR and BCG on AI and business strategy. It includes results from a global survey of 1,741 managers and interviews with 17 executives representing more than 100 countries and 20 industries on the use of AI in the workplace. According to the report, people derive personal value from AI when using the technology enhances their self-determination, which includes their competence, autonomy and connectedness.
“The use of AI in business is already widespread. Many technologies have built-in, even hidden, AI components that workers may not even know about. When everyone uses AI to some degree – and gets value from it – familiar tropes become problematic,” said Sam Ransbottomprofessor of analysis in Boston College and guest editor for MY SMR Big Ideas Research Initiative for Artificial Intelligence and Business Strategy. “For example, the idea that managers who use AI will replace managers who don’t use AI loses meaning when everyone uses AI.”
Understanding the extent of AI at work
The use of AI is so widespread that individual workers may take some of its applications for granted. According to the findings, 66% of people report that they do not use AI or use it minimally. But when prompted with specific examples of AI-enhanced business applications, such as office productivity apps, calendaring programmers, and customer relationship management software, 43% of these respondents admitted to regularly or sometimes using AI-enhanced business products. intellect. (See Figure 1.)
“When people don’t know they’re using AI, it’s naturally harder for them to recognize its value,” said Francois Candelon, global director of the BCG Henderson Institute and co-author of the report. “But our research shows that employees who use AI consciously are 1.6 times more likely to receive individual value and 1.8 times more likely to be satisfied with their jobs than those who don’t realize they are using AI.”
Mandating the use of AI is a critical step in overcoming resistance
Interviewees and survey respondents indicated that mandating the use of AI is an important initial step in overcoming resistance. Mandatory use of AI triples the likelihood of its use: People who are required to use AI at work are three times more likely to use the technology regularly than those who are not required to use it professionally. But managers still need to ensure that people have representation. Individuals who can override AI are 2.1 times more likely to use it regularly than those who cannot override it. What’s more, managers who lead by example by using AI with their teams are 3.4 times more likely to drive regular AI use among individual team members than managers who don’t.
“Trust is just one factor driving AI adoption: being required to use it. Seeing your boss use it. Have the ability to undo it. All of this contributes to adoption, especially in the early stages of AI deployment,” he noted David Kieran, MY SMR editorial director, researcher and co-author of the report.
The Impact of AI on Job Satisfaction, Competence, and Coworker Interaction
According to the report, 64% percent of respondents personally derive at least moderate value from using AI. These workers are 3.4 times more likely to be more satisfied with their jobs than employees who do not receive value from AI. Only 8% of global survey respondents are less satisfied with their jobs because of AI.
Individuals who received AI-based suggestions to improve their performance were 1.8 times more likely to feel more competent in their roles than those who did not. Additionally, employees working in organizations that invest in AI that improves the quality of decision-making on issues such as operations planning, inventory management, and marketing ROI are 1.5 times more likely to perceive individual value from AI compared with those in organizations that don’t invest in this type of AI.
The survey revealed that many respondents believe that using AI has improved interactions with their team members (56%), with their managers (47%) and with others in their departments (52%), in addition to helps them feel more capable in their work.
“To reap the financial and organizational benefits of AI, managers must foster a virtuous cycle of use and value at the individual level by cultivating trust, understanding, agency and awareness of the technology,” said Sherwin Khodabandesenior partner and managing director at BCG, coleader of GAMMA in North America, and co-author of the report. “The relationship between individual and organizational value from AI is additive, not zero-sum.”
Download the report here.
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About MIT Sloan Management Review
At MIT Sloan Management Review (MY SMR), we explore how leadership and management are being transformed in a disruptive world. We help savvy leaders seize the exciting opportunities—and meet the challenges—created as technological, societal, and environmental forces change the way organizations operate, compete, and create value.
MIT Sloan Management Review Big ideas
MY SMRBig Ideas initiatives develop innovative, original research on the problems transforming our rapidly changing business environment. We conduct global research and in-depth interviews with front-line leaders working in a range of companies, from Silicon Valley startups to multinational organizations, to deepen our understanding of shifting paradigms and their impact on the way people work and lead.
About Boston Consulting Group
Boston Consulting Group partners with leaders in business and society to address their most important challenges and capture their greatest opportunities. BCG pioneered business strategy when it was founded in 1963. Today, we work closely with clients to take a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and stimulate a positive impact on society.
Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that challenge the status quo and drive change. BCG delivers solutions through leading management consulting, technology and design, and enterprise and digital ventures. We operate a unique model of collaboration within the firm and at all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.
About GAMMA, part of BCG X
BCG X is the Boston Consulting Group’s home for technology and design talent. The multidisciplinary unit develops cutting-edge AI, visionary business ventures and unique software and products powered by the combined expertise of BCG Digital Ventures, BCG GAMMA and BCG Platinion. Together as BCG X, this team collaborates at all levels with leading global organizations to solve their greatest strategic and technology challenges. BCG X is at the forefront of thought leadership, with a broad range of industry-recognized experts and a deep commitment to industry thought leadership.
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SOURCE Boston Consulting Group (BCG)