Good morning. Generative AI is poised to transform business, but what does it mean for your people? Lynda Gratton, human capital expert and professor of management practice at London Business School, wants C-suite leaders to keep this question in mind.
Yesterday, during an interesting MIT Sloan Management Review webinar, What AI Means for Human Capital, Gratton discussed how generative AI, with its accessible nature and advanced automation, has the potential to redefine work.
“For me, as a psychologist, the issue is related to the essence of work, that is, ‘why do we work?’ What can we get out of this?'” he explained. “If we lose sight of that question, we’re just being completely operational.”
Gratton, who is the founder of HSM Advisory, a London-based research consultancy, shared that based on what he has heard from clients around the world, there are three main areas where generative AI is impacting a firm’s “people strategy”.
For starters, there is talent developmentincludes recruiting and hiring and career management. “Now there’s a lot of work being done with chatbots and generative artificial intelligence to help you understand yourself,” he said. Second, there is productivityincludes management of assessment, feedback, skills, training and collaboration. But it is the area where he is most active change management—or internal knowledge and external knowledge management.
“I’ve been studying companies for 30 years now, and one of the things that really worries us is that we have so much knowledge in our organizations, but we don’t know where it is,” Gratton explains. “We don’t know how to find him. I think that’s an area that we’re really focused on in terms of generative AI.”
For example, British multinational law firm Allen & Overy LLP is experimenting with generative artificial intelligence to access all of the company’s work and draft contracts. McKinsey & Company uses Lilly for internal knowledge management. “It’s a platform that provides simplified, unbiased search and synthesis of the firm’s vast knowledge base to deliver our best ideas to clients quickly and efficiently,” the firm said. Meanwhile, Morgan Stanley is using a generative artificial intelligence solution to advise clients on wealth management, Gratton said.
“If we look at generative AI as just a replacement technology, it would be a big mistake,” he said. “If we as humans are to get the most out of this amazing technology, we have to see it as a process of expansion.”
Have a nice weekend.
Upcoming event: Luck‘s CFO Collaborative is an invite-only group of CFOs from leading companies who meet virtually and in person to have in-depth discussions about what’s on their minds.
Our topic next month will be “Defining the value proposition for GenAI.” At this intimate dinner scheduled for February 28th in Houston and co-hosted by Workday and Deloitte, we will explore how companies can best take advantage of the AI Revolution and the operational and organizational changes required for businesses to incorporate GenAI.
Join me and Luck senior editor Geoff Colvin for a discussion with Niccolo de Masi, chairman of The Futurum Group, a global technology consultancy, and leading CFOs from Houston and beyond.
This is an invite-only event, but CFOs can apply to attend here. If you would like more information, please email: [email protected]
This story was originally featured on Fortune.com