new MIT Sloan Management Review Boston Consulting Group research has found that organizations are more likely to extract value from AI when their workers do so too
BostonAnd the November 1, 2022 /PRNewswire/ – Despite the widespread belief that organizations derive value from artificial intelligence (AI) at the expense of the people they hire, and that AI-powered automation can displace workers, 60% of employees see AI as a coworker rather than a threat functionally. Furthermore, organizations where employees derive value from AI are 5.9 times more likely to see significant financial benefits from it than organizations where employees do not derive value from AI, according to a report from MIT Sloan Management Review (MIT SMR) And the Boston Consulting Group (BCG) He was released today.
the report, “Achieving individual and organizational value using artificial intelligence,” Presents results from the sixth annual research effort between MIT SMR The BCG on Artificial Intelligence and Business Strategy. It includes the results of a global survey of 1,741 managers and interviews with 17 CEOs representing more than 100 countries and 20 industries about the use of AI at work. According to the report, individuals derive personal value from AI when the use of technology improves their self-determination, which includes their competence, independence, and relationship.
“The use of AI in business is now rampant,” he said. “Many technologies have embedded, and even hidden, components of AI that workers may not be familiar with. When everyone is using AI to some degree—and getting value from it—familiar metaphors become a problem. ,” Sam RanbothamProfessor of Analytics at Boston College and guest editor for MIT SMR Artificial Intelligence and Business Strategy Big Ideas Research initiative. “For example, the idea that managers who use AI will replace managers who don’t use AI loses meaning when everyone else uses AI.”
Understand how artificial intelligence is at work
The use of artificial intelligence is so pervasive that individual workers may take some of its applications for granted. According to the results, 66% of individuals reported that they do not use artificial intelligence or use it minimally. But when prompted for specific examples of AI-enhanced business applications, such as office productivity apps, calendar scheduling, and CRM software, 43% of these respondents admit that they regularly or occasionally use business products with AI. (See Figure 1.)
“When individuals do not know they are using AI, they naturally have a hard time realizing its value,” said François Candelon, global director of the BCG Henderson Institute and co-author of the report. “But our research shows that employees who use AI on purpose are 1.6 times more likely to get individual value and 1.8 times more likely to be satisfied with their job than those who don’t realize they are using AI.”
Delegating the use of AI is a critical step to overcoming resistance
Interviewees and survey participants indicate that enforcing the use of AI is an important initial step to overcoming resistance. Making AI mandatory use triples the likelihood that it will be used: people who are required to use AI at work are three times more likely to use technology regularly than those who are not required to use it professionally. But managers still have to ensure that individuals have agency. Individuals who can bypass AI are 2.1 times more likely to use it regularly than those who cannot. Furthermore, managers who lead by example using AI with their teams are 3.4 times more likely to promote regular use of AI among individual team members than managers who do not.
“Trust is just one factor driving AI adoption: being required to use it. Seeing your boss using it. Having the ability to transcend it. These all contribute to adoption, especially in the early stages of AI deployments,” David ChironAnd the MIT SMR Editorial and research director and co-author of the report.
The impact of artificial intelligence on job satisfaction, efficiency and coworker interaction
According to the report, 64% of survey respondents personally derive at least moderate value from using AI. These workers are 3.4 times more likely to be satisfied with their jobs than employees who do not get value from AI. Only 8% of global survey respondents are less satisfied with their jobs due to AI.
Individuals who receive AI-based suggestions to improve their performance are 1.8 times more likely to feel competent in their roles than those who do not. Furthermore, employees working in organizations that invest in AI that improves the quality of decision-making for such things as process scheduling, inventory management, and marketing ROI are 1.5 times more likely to perceive the individual value of AI compared to those in organizations that do not invest in AI. This kind of artificial intelligence.
The survey showed that many respondents believed that using AI improved interaction with their team members (56%), with their managers (47%), and with other people in their departments (52%), in addition to helping them feel more empowered. in their job performance.
“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 technology,” Shervin KhodabandehSenior Partner and General Manager at BCG, GAMMA Fellow at North Amaricaand one of the authors of the report. “The relationship between the individual and organizational value of AI is additive, not zero.”
Download the report over here.
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About MIT Sloan Management Review
in MIT Sloan Management Review (MIT SMR), we explore how leadership and management are transforming in a disruptive world. We help thoughtful leaders seize the exciting opportunities – and meet the challenges – created when technological, societal, and environmental forces reshape how organizations operate, compete, and create value.
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MIT SMRBig Ideas initiatives develop innovative and original research on issues transforming our rapidly changing business environment. We conduct global surveys and in-depth interviews with frontline leaders working in a range of companies, from Silicon Valley startups to multinational organizations, to deepen our understanding of changing paradigms and their impact on how people work and lead.
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SOURCE Boston Consulting Group (BCG)