With AI becoming a hot, hot topic in recent months, one must wonder how businesses are coping with this upsurge. Specifically, how could they achieve increasingly important ESG goals, with AI involved now?
Over the past few years, Artificial intelligence (AI) has established itself as a ubiquitous buzzword across a wide spectrum of industries. Whilst AI has existed as a concept from the 1950’s, a number of factors have driven its rapid development and subsequent popularity over the past decade. Computational capacity is perhaps the most important of these factors and has allowed for the rapid expansion of AI’s capabilities – from pattern recognition to visual acuity and language translation. Now, recent breakthroughs in generative AI tools have resulted in AI’s pervasion of almost every facet of life.
Notably, AI is becoming increasingly prominent in the workplace. According to data compiled by McKinsey & Company, recently debuted generative AI tools such as ChatGPT and DALL-E are already being used by one third of surveyed organisations in at least one business function. Moreover, approximately 40 percent of those surveyed by Mckinsey state that their respective organisations are on track to substantially increase their investments into AI as a tool for firm-wide use. Whilst many experts contend that the embedding of AI tools into the workplace will strengthen productivity, others are cautioning about its potential to create mass job displacement.
Will AI lead to the obsoleteness of all human labour? Probably not. Yet its impact on the future of the job market should not be underestimated. In the long term, there appears to be a consensus among technologists and economists alike that AI will lead to a significant shift in labour demand. Specifically, labour-augmenting AI will undoubtedly transform the composition of employment opportunity, which may prove disastrous for those not equipped to handle shifts in demand for certain technical skills.
How may ESG strategies be employed to mitigate potential job loss in the AI era? Pertaining to the social pillar of ESG, ESG-conscious firms may choose to invest in employee training and development initiatives. Doing so would provide their workforces with the skills required to adapt to AI-driven workplace change. A number of French corporations have already begun to do this, with a recent study finding that French firms committed to re-skilling their employees have increased their overall employment figures even as AI technology has been introduced to the workplace.
Externally, ESG criteria could encourage businesses to engage with their local communities about the increasing presence of AI. This may include investing in infrastructure or education to
help communities navigate anticipated job disruptions. Firms such as Verizon already provide grants for students wanting to pursue further education in a technology related field; this could be extended through the provision of subsidies for resources specifically tailored to the development of AI-related skills.
Alternatively, in line with the governance pillar of ESG, firms may introduce clearly defined guidelines for the development and deployment of Artificial Intelligence. For example, corporations may commit to utilising AI to augment rather than replace human capabilities, or they may build a framework for ethical AI that respects human rights and privacy. The latter solution would address an increasingly prominent concern for workers. A recent survey conducted by BCG found that 64% of those interviewed were worried about the protection of their personal data when AI tools are utilised in the workplace.
Important to note is that whilst AI has the potential to cause workplace disruption, it can also be used to promote ESG practices. This is particularly true with regard to data analysis, given the capability of AI to collect vast amounts of data. Environmentally, this increased capacity may allow for more effective climate change modelling. DeepMind’s AI system, for example, is already showing potential in boosting weather forecasting accuracy. Socially, AI technology can be used to promote inclusivity in the workplace. Unilever has used artificial intelligence-driven recruitment technologies to assess candidates more objectively in their recruitment processes, thereby resulting in a more diverse and inclusive workforce.
AI’s impact on the workplace and society at large will be significant. By proactively tackling the challenges and leveraging the opportunities presented by AI, businesses can navigate this transformational technology in a way that is both sustainable and ethical.
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