By Prejlin Naidoo
Generative artificial intelligence (AI) stands as one of the most disruptive technologies in human history, capable of transforming entire economies and business sectors. It’s also one of the fastest-adopted technologies ever. OpenAI’s ChatGPT gained one million users within five days of its 2022 launch and reached 100 million users in just two months.
The potential of generative AI has spurred technology giants such as Microsoft Meta, and Alphabet to aggressively pursue AI initiatives.
Projections suggest the market could contribute up to $20 trillion (more than R372 trillion) to global gross domestic product by 2030 and save 30 billion work hours annually, according to a recently released report by the Oliver Wyman Forum.
The report also revealed that 96% of the roughly 25 000 workers surveyed believe generative AI can enhance their job performance, including a sizeable percentage in South Africa. But like the rest of the global economy, businesses, government, and workers across South Africa need to tackle some significant issues as adoption of generative AI expands, including fears of job displacement and investing in worker training.
A hunger for AI skills and development
The South African workforce has shown a stronger appetite than other advanced economies for using generative AI. More than 60% of South African workers are regular users of generative AI tools, with 41% saying they use them at least once a week and 21% using them daily, according to the Oliver Wyman Forum survey. This compares to lower AI adoption rates in Europe and the US.
41% of workers in France, 44% in the UK, and 46% in the US claimed to be frequent users. But trail other tech-forward countries like India and Singapore where 83% and 64% of workers respectively use generative AI tools.
There’s a clear demand among South African workers for AI skill development. Nearly 85% of respondents expressed a desire for AI training, with 78% currently receiving some form of training. Unfortunately, a majority (57%) find their training inadequate, a concern shared across white-collar workers and skilled labourers alike. Younger generations, such as Gen Z and millennials, are more proactive in seeking out sources to acquire these skills compared to their Gen X and boomer counterparts.
As they launch training programs, employers must be attuned to the risks posed by enabling great use of generative AI. Importantly, allowing access to external technology systems from company computers creates new cybersecurity vulnerabilities. Employers also need to put guardrails in place to ensure that generative AI-produced materials are accurate and that they account for biases that have been embedded in some datasets over time. They also need to ensure that use of generative AI doesn’t violate copyright or trademark laws.
Fears of job losses
Among the biggest worries for workers and the growth of generative AI is the potential job loss. Roughly 70% of white-collar workers in South Africa said they were concerned about AI automation. On average, South African workers believe that 45% of their jobs could be automated due to generative AI, with 36% actively seeking other employment opportunities because of this technology. To ease those concerns, employers should work with employees to identify tasks that can be easily automated, freeing them to focus on more value-added job functions.
These fears are not unfounded. The World Economic Forum predicts that AI could disrupt up to 85 million jobs by 2025, with one-third of entry-level jobs at risk of automation. Moreover, junior workers equipped with AI tools could replace first-line managers, creating a workforce imbalance.
Yet, as with previous disruptive technologies shifts, there will likely be a substantial number of new jobs created. According to the World Economic Forum, AI could also generate 97 million new jobs by 2025. To ensure that AI is capable of playing a role as a job creator, companies will have to deliberate around how they handle the transition. As a first step, organisations should focus on the hunger for skills and invest in retaining their employees.
A big part will be working on human-AI collaborations. Developing generative AI will require a bit of analogue in addition to the purely digital — some human warmth alongside the cold precision, mixed in with lessons from people governance and management approaches applied to a world of co-piloting with machines. The ability to integrate humanlike thinking, skills, and experience into the transformation by led generative AI will set companies apart in the years ahead.
AI with purpose
To maximise its benefits and minimise risks, companies must purposefully implement AI. It’s crucial to deploy generative AI in contexts where it is most effective and poses minimal risk.
Ultimately, it’s critical that organisations recognise the threat that AI represents if they fail to upskill their staff. Collaboration with AI experts can prove invaluable in navigating this landscape, identifying opportunities, and ensuring organisations fully capitalise on AI potential.
Prejlin Naidoo, Partner, CMT, Oliver Wyman
BUSINESS REPORT