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4 key areas where AI can benefit private businesses
In 1998, teachers in the US went on strike calling for a ban on calculators, fearing their use would prevent students from learning mathematics. A few years later, bank employees in India also withdrew their labour, in protest against the introduction of computer systems that they thought might cost them their jobs. The outcome in each case? The fears were unfounded – and employment in those sectors continued to rise.
In my 25 years working and innovating at the leading edge of emerging technologies, I’ve seen many hype cycles – of which the current upsurge is just the latest. What’s new this time isn’t the technology but the usage of it to create an experience that people love, and which hundreds of millions around the world have chosen to download.
The reality is that AI is opening up new vistas of opportunity for businesses – as well as their employees and customers. In navigating the journey, my experience points to four realities of AI that private businesses should bear in mind if they’re to realise the full benefits for their business, employees and customers.
1. Some jobs get redefined, some eliminated – and some created.
I know of one client that implemented robotic process automation to support its billing and invoicing, and – as a result – was able to reduce the function’s headcount from 700 to 25. But not a single one of these employees lost their job. The boost to efficiency, customer satisfaction and cashflow delivered by AI meant all the people could be reskilled and redeployed to other activities to help grow the business. AI can also create brand new roles: witness the global emergence of the well-paid profession of “prompt writer”, developing prompts to be entered into AI engines to generate the right kind of results.
2. The productivity gains can be substantial.
Today’s businesses are facing a global shortage of skills – a challenge that’s compounded in many countries by ageing populations. At the same time, competition and cost pressures are intensifying. Using AI to relieve human employees of the burden of routine, repeatable tasks and freeing them up for more productive, value-adding work can help address these issues.
3. To be sustainable, AI must be used responsibly.
One aspect of responsible AI is protecting the interests of employees and ensuring AI doesn’t impact them negatively. This approach comes naturally to most private businesses, given their deeply-held personal values and close connection to their people. Another element is preventing customers’ data from being used intrusively or in a way they would be unhappy with. Alongside the danger of breaching regulations such as the European Union’s (EU) General Data Protection Regulation (GDPR), misuse of personal data raises major reputational risks.
4. AI capabilities will continue to evolve.
Innovation around AI is advancing all the time. For example in our business PwC recently announced a global alliance with artificial intelligence (AI) startup Harvey, providing PwC’s Tax & Legal Services (TLS) professionals worldwide access to the game-changing AI platform. Harvey, which is backed by the OpenAI Startup Fund, is built on OpenAI and Chat GPT technology. It is a platform that uses natural language processing, machine learning and data analytics to enhance various aspects of legal work; PwC will also be developing use cases for tax.
Look beyond the hype
A final thought. When hype cycles flare up and then appear to fade, that’s never the end of the story. Why? Because they usually leave behind the foundations for the hype to become reality in the future. Two decades ago, we had the dot.com boom: it ended in a bust, but had already stimulated investment in the fibre networks that now underpin today’s online services, from eCommerce to video streaming to ChatGPT.
Beyond the hype, the long-term business logic for AI is there. So businesses should look to conduct pilots of AI capabilities and – if they fly – scale them up. That’s the best way to test out the opportunities and risks, and to assess the likely returns on investment. Bottom line, AI is here to stay – and no business can afford to ignore its potential.
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