At a recent talk, I clarified HR’s evolving role in today’s dynamic landscape by posing an essential question: What is HR’s role today?
Historically, HR has served as the guardian of people, overseeing processes, advocating for employees, and driving organisational change. While these roles have been crucial, they have often functioned reactively. Today, however, HR must transcend these traditional boundaries. The mandate is clear: HR must anticipate and prepare for disruptions that could reshape businesses overnight. This requires HR to evolve into a strategic partner, assisting organisations in:
- Embracing emerging technologies like AI.
- Aligning talent strategies with operational needs.
- Safeguarding and leveraging disruptive innovations.
Consider organisations such as Amazon, Paytm, and Adobe. Each has encountered new rivals or transformative shifts, emphasising the necessity for adaptability.
-Amazon: Once the unrivalled leader in e-commerce, Amazon now confronts challenges from startups like Zepto, which provide ultra-fast 10-minute deliveries. This innovation disrupts Amazon’s supremacy by changing consumer expectations.
- Paytm: Once synonymous with digital wallets, Paytm underestimated the transformative impact of Unified Payments Interface (UPI) technology. Nevertheless, its lax compliance and incomplete processes resulted in a significant loss of market share to competitors that adapted to change, such as Google Pay and PhonePe.
- Adobe, recognized for its suite of paid tools, now faces competition from free alternatives as well as Canva, which has simplified design. AI-powered alternatives that can deliver comparable results pose a threat to Adobe’s established business model, compelling the company to innovate or risk becoming obsolete.
These stories illustrate cautionary tales from the past, such as Kodak’s failure to adapt to digital photography and the decline of black-and-white television manufacturers. The lesson is clear: organisational survival depends on proactive evolution. Consequently, HR’s role is not merely to manage change but to actively anticipate and prepare for the future.
Knowledge management systems have long been a cornerstone of operational efficiency in consulting and investment banking. These systems enable knowledge workers to develop technical expertise and provide organisations with a competitive edge. However, the rise of AI is fundamentally transforming this landscape. AI centralises knowledge within enterprise systems, streamlining information accessibility. For instance:
- All relevant machinery details can now be stored in a single manufacturing repository. Visual designs can be created, and complete simulations can be conducted without human intervention.
- In consulting and investment banking, data, which was once a major topic of discussion, is now easily accessible to anyone with the means to access it. The democratisation of data shifts the focus from acquisition to interpretation and application.
This shift raises a crucial question: Does this indicate the decline of the knowledge worker?
Knowledge workers have long enjoyed a privileged status. Their expertise, high salaries, and flexible work arrangements set them apart. However, these advantages are now at risk. AI is increasingly taking on tasks traditionally assigned to knowledge workers, such as data analysis, pattern recognition, and even report generation. For those who rely on conventional methods or repetitive data manipulation, the future looks uncertain.
However, there is one crucial area where AI falls short: creativity. AI lacks imagination, intuition, and the ability to think beyond predefined parameters. This creates a unique opportunity for individuals who can:
- Approach data as a support tool rather than a limitation.
- Innovate and think unconventionally.
- Combine left-brain analytical skills with right-brain creative thinking.
This dichotomy between left-brained and right-brained thinkers is particularly evident in the tech industry. While left-brain-dominant developers create AI systems, right-brain-dominant individuals envision new applications and use cases for these technologies. Collaboration between these types of thinkers is likely to shape the future.
The interplay between creativity and execution is also evident in different leadership styles. For example:
- Steve Jobs: A visionary leader whose creative genius transformed Apple.
- Tim Cook: A pragmatic leader who has skillfully managed Apple’s growth by scaling operations and maintaining profitability.
- Leaders at Google and Microsoft: Capable executives who thrive in ecosystem management, yet may not perceive themselves as exceptionally imaginative.
These examples emphasise the importance of balancing creativity with execution. Organisations that promote this balance will be better prepared to tackle AI’s challenges.
The answer is nuanced. While some knowledge workers face considerable challenges, others have the opportunity to thrive. Success will depend on the ability to:
- Adapt and Evolve: Knowledge workers must embrace lifelong learning, acquire new skills, and stay ahead of technological advancements.
- Leverage Creativity: Imaginative and unconventional thinkers will remain indispensable, using AI to enhance their capabilities.
- Collaborate Across Disciplines: The future belongs to teams that merge analytical rigour with a creative vision.
Even more challenging is designing organisations and recruiting talent. The evolving landscape will create highly paid knowledge workers who may need to be downsized, along with an emerging class of business shapers who understand AI and use it to influence their businesses. These Business Shapers must be cultivated, mentored, or coached as they progress. Knowledge Workers were not affected by failures, as their roles were supply-driven, whereas Business Shapers will rise and fall with their ideas and implementations.
The rise of AI does not signify the end of knowledge workers; rather, it serves as a call to action. It encourages individuals and organisations to reconsider traditional roles, redefine success, and further emphasise innovation. By fostering a culture of adaptability, creativity, and collaboration, we can ensure that knowledge workers remain relevant and valuable in an AI-driven world. In this new era, the most successful individuals will not be those who fear AI, but rather those who harness its potential to create, innovate, and lead. The question is not whether knowledge workers are at risk but whether they are prepared to seize the opportunities that lie ahead and become shapers of business in the years to come.
[1] Steve Correa is an Executive Coach and Author of The Indian Boss at Work, Thinking Global, Acting Indian
[2] Ronald D’Souza has Corporate and Consulting Experience and mentors new startup’s.
This article was first publised on medium on 6th Jan 2025. https://medium.com/@stevecorrea.com/the-knowledge-worker-and-the-rise-of-ai-competition-steve-correa-ronald-dsouza-d23c958e3503
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