Artificial intelligence (AI) has particularly hit the ground running in the past 2 years, largely due to the COVID-19 pandemic, and is impacting the economy in ways that are significant but not readily visible. Specifically, businesses, large and small, have begun to implement AI to manage their labor. 86% of companies have stated that AI is becoming the mainstream technology for their processes, and 55% attributed their adoption of AI to the COVID-19 pandemic. In a practical sense, AI can help decrease workloads by automating repetitive tasks, and even scanning job sites to ensure safe work spaces. Whether it’s used to oversee work schedules, support talent acquisition and recruitment, or perform manual labor, AI continues to efficiently manage various forms of labor in a myriad of industries. Let’s take a look at how AI manages labor in specific sectors.
AI supports Human Resources (HR) management by predicting employee attrition. When necessary employees leave a company without much notice, that hurts the business. We know that employee retention is imperative to the success of any organization, that is why using AI to accurately forecast when an employee is planning on leaving is mission critical. At Iterate.ai, our low-code AI environment, Interplay®, is ready to use AI predictive analytics to predict the likelihood that an employee will leave your organization.
AI also manages HR functions by analyzing data to ensure that your employees are being adequately compensated. Now more than ever, employees are advocating for fair compensation. By using big data (e.g. salary data from all competitors in your sector) you can rest assured that the various positions in your organization are being appropriately compensated based on market data.
Excellent recruitment efforts have been even more crucial for companies’ success since the Great Resignation. AI helps organizations with their recruitment processes by screening candidates, assessing applicants’ materials, and scheduling interviews. We’d be remiss to not mention that bias in AI can come out in recruitment processes, due to implicit biases that come from the humans that created and trained the AI itself. We still recommend using AI to benefit recruitment management, but with the commitment to conduct frequent algorithm readjustments in order to prevent bias from creeping into the AI. Additionally, using AI to replace tedious tasks, as opposed to completely replacing an actual recruiter (preferably one who is aware of bias and inclusion efforts) can aid in providing a harmless, yet optimal recruitment experience.
AI in the banking industry is projected to hit 64.03 billion USD by 2030. AI is used in this sector in support of customer service roles (e.g. via chatbots and virtual assistants), for cybersecurity (e.g. using data from previous threats to predict future threats), and credit scoring. We are seeing AI continue to grow in this industry, from 52% of financial services using AI for revenue generation, to 56% using AI for risk management. Just as many other fields have seen large successes in using AI for customer service support, the banking industry has specifically branded their own use for AI in customer service management by way of the robo-advisor. This type of AI uses algorithms to perform tasks or make financial decisions (e.g. investing) by ultimately benefiting the customer. Incredibly well-known banks like Ally and Charles Schwab have their own robo-advisors, thanks to the power of AI.
In order for AI to properly manage labor across fields, large organizations must trust in startups to keep up with industry trends and provide the most innovative solutions. At Iterate.ai, we strongly believe in the power of startups because they are the leaders in innovation. When large enterprises join forces with startups, great solutions happen fast, that’s why we created our platform, Signals, that has indexed over 15.8M companies. Thanks to our proprietary AI, we can confidently find the perfect startup for you to partner with based on your needs and goals. Using what our Signals platform has recorded, let’s take a look at 5 AI labor management startups.
As we continue to implement AI labor management systems in the workplace, we must consider replacing the common question, “will AI replace me?” to one that asks, “am I ready to work with AI when it enters my work space?” AI isn’t going anywhere, especially not after proving to support so many organizations with labor management. Let’s take a look at a few potential realities for the future of AI labor management.
Using AI to manage labor has created a reorganization effect on organizational structures. AI is making companies less top-heavy and flatter hierarchically because of its ability to give entry-level workers the tools and knowledge to make high-stakes decisions. AI provides a safety net for these crucial decisions, thanks to its predictive and automated properties. Entry-level professionals now have more autonomy to move forward in decision-making without consulting with middle managers. This also creates a shift in who companies are hiring– organizations looking to incorporate AI for labor management may look to hire entry-level workers that have skills and familiarity with AI. As with any major digital transformation, the workforce becomes reorganized to fit innovation needs, we are currently seeing this happen with the use of AI for labor management.
Despite concerns that AI for labor management will replace human workers, we are seeing that AI actually creates more jobs than it destroys. In a future with AI labor management in every company, human workers will work with AI to their benefit. In the workplace, AI will teach employees where their bias comes in, making the workforce more aware and inclusive. AI also will automate those mundane tasks, freeing up workers’ time to focus on more important tasks and even get more of a break during the work day. Although it may feel like AI has the power to replace humans, we know that by 2025, this technology will create 12 million more jobs for workers. This will be a shift in labor and in the overall workforce, and it is necessary for companies to learn to lean into the benefits of AI for labor management.
Want to talk through how you can use AI to manage labor at your organization? Need a startup recommendation that will help you achieve your company’s goals? At Iterate.ai, we have a team of experts who are ready to support you, please contact us here.
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