Corporate leaders must be upfront about the transformative effects of artificial intelligence (AI) on the workforce, warns Jim Kavanaugh, CEO of World Wide Technology (WWT).
Kavanaugh said it is unrealistic to tell employees AI won’t impact their jobs, and doing so would only erode trust.
In a recent interview, Kavanaugh said:
“If you think you’re going to try to game this, and that you’re going to tell employees nothing’s going to change, and everything’s going to be fine, that’s just BS.”
He emphasized technology will reshape work in many industries and that people are “too smart” to believe otherwise.
WWT, a $20 billion enterprise technology firm, offers services like cloud computing, AI, and consulting. Kavanaugh co-founded the company in 1990. He added that while the full scope of the impact is uncertain, transparency and a willingness to adapt are key.
Embrace AI, Don’t Fear It
While many are concerned about the potential to eliminate jobs, Kavanaugh believes the technology will largely serve as an “enhancer and accelerator” for work.
He advised that business leaders need to be clear about the uncertainties surrounding AI’s impact on jobs.
He said:
“If anybody comes in and tells you, ‘I can tell you exactly how this is going to impact jobs and how it’s going to impact everything we’re doing,’ they’re lying. Because nobody knows.”
Despite acknowledging AI will disrupt jobs, Kavanaugh remains optimistic. He encourages leaders to embrace the tech rather than resist it.
He added:
“Sitting there and saying, ‘I’m going to try to throw cold water on this fire, I’m going to try to put it out and ignore it,’ that’s a complete mistake,”
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AI as Both a Disruptor and Creator of Jobs
Fears about job loss are not new.
A Goldman Sachs research paper from last spring suggested that as many as 300 million jobs could be automated globally.
The report stated that in the US and Europe, two-thirds of jobs are exposed to some level of AI automation. It said up to a quarter of current work could be substituted.
Despite these concerns, Kavanaugh and others remain hopeful that AI will create new opportunities.
Clara Shih, Salesforce’s head of AI, echoed this sentiment, acknowledging that while some jobs will disappear, the tech will also generate entirely new roles.
She said:
“The internet destroyed a lot of jobs.
“But then it created brand new ones that we couldn’t have even imagined in 1999.”
Shih believes that AI will fundamentally change job descriptions rather than eliminate most jobs outright.
She added:
“Most jobs are not going to go away, but every job is going to require a new job description,”
AI as a Tool for Workforce Efficiency
Some companies are already seeing AI improve efficiency and reduce personnel needs.
Swedish fintech company Klarna reported last month AI helped reduce its workforce from 5,000 to 3,800 employees in just one year.
The company expects to cut its workforce further, to 2,000. This is through increased AI usage in areas like marketing and customer service.
Both Kavanaugh and Shih stress embracing technology and being transparent with employees are essential steps for business leaders.
Kavanaugh said:
“There will be jobs that will be disrupted, no question about that,”
“But, for the most part, I truly believe it will be an enhancer and an accelerator of what we’re all doing.”
Moving Forward: Leadership and Transparency in the Artificial Intelligence Era
As the changes in technology continue to disrupt industries, corporate leaders must be transparent about the changes it will bring.
Kavanaugh’s advice to embrace the tech while being honest with employees about its potential impacts could set a precedent for how companies approach this rapidly evolving technology.
In the coming years, the key question will be whether businesses can harness AI to enhance productivity while creating new opportunities for their workforce.
While no one can predict exactly how the new technology will shape the job market, leaders who embrace transparency and innovation may be better positioned to navigate the uncertain future of work.
