AI Readiness And The Road Ahead: Understanding Company Preparedness For An AI-Driven Future

A New Study Of 1,148 Executives And Managers Reveals Most Organizations Are Not Sufficiently Ready For AI

Anew study sheds light on companies’ AI readiness of companies. During the last two weeks of June 2023, more than 1,100 executives and managers assessed their own AI readiness and the preparedness of their employees.

A majority of executives and managers have personally used AI tools, indicating a relatively high level of exposure to AI among decision-makers. However, when asked about the usage of AI tools among their employees, executives and managers estimated that a substantial portion of their workforce has not engaged with major AI tools.

This discrepancy in AI exposure is further emphasized by contrasting the perceived impact of AI on jobs. While 54% of executives and managers believe that AI will have an impact on their jobs, they estimate that a lower percentage of their employees believe that AI will have an impact on their roles. This indicates that executives and managers are generally more cognizant of the potential implications of AI for their positions compared to their perception of employees’ awareness.

Moreover, while a combined 27% of executives and managers believe that AI will replace at least some employees in the next three years, a significant 50% do not believe this will be the case, highlighting skepticism or cautious optimism regarding the short-term impact of AI on employment.

When it comes to the receptiveness of adopting AI technologies, almost half of the executives and managers sensed some level of positivity or openness among their employees. However, there is also a significant perception of skepticism, reluctance, or resistance among the workforce.

STUDY OVERVIEW
The 1,148 respondents to the questionnaire answered 14 questions about various aspects of AI at their current employer. Respondents for the combined study represented the following demographics. NUMBER OF EMPLOYEES: 1-100 (37%)--101-300 (18%)--301-600 (12%)--601-1000 (8%)--1001-5000 (8%)--Over 5000 (18%). INDUSTRY (TOP 10): Healthcare / Medical (11%)--Computers (Hardware, Desktop Software) (11%)--Consulting (9%)--Finance / Banking / Insurance (7%)--Utilities (5%)--Transportation/ Distribution (5%)--Pharmaceutical / Chemical (5%)--Non-Profit (5%)--Engineering / Architecture (5%)-- Business / Professional Services (5%). JOB ROLE: Executive & Vice President (23%)--Director (32%)--Manager (45%)

Leaders Weigh In on AI’s Impact on Their Jobs

In the survey, 54% of executives and managers believe that AI will have an impact on their job, whereas 24% do not think so, and 22% are uncertain. This data reveals that a majority of executives and managers are aware of the potential influence that AI could have on their roles. However, it's notable that a combined 46% either do not believe AI will impact their job or are unsure about it.

How Effective Is Your Executive Leadership Team?

The fact that 54% of leaders believe that AI will have an impact on their job indicates a growing awareness and recognition of the transformative nature of AI technologies. This awareness is crucial as it can drive proactive measures, such as upskilling, strategizing, and adapting business processes to harness the benefits of AI. However, the 46% who do not believe AI will impact their job or are unsure about it is a significant proportion and cannot be overlooked.

How Leaders Think Employees See AI Shaping Their Jobs

The responses from executives and managers regarding their perception of what percentage of their employees believe AI will have an impact on their job indicate a general assumption that a large portion of their workforce does not foresee a significant impact of AI on their roles. Specifically, 15% of leaders believe that none of their employees think AI will have an impact on their job, and 25% estimate that only 10% of their employees hold this belief. It is also interesting to note that a small 6% believe that all of their employees expect AI to have an impact on their job.

This data suggests that there might be a lack of awareness or understanding among employees regarding the implications of AI on the future of work. There appears to be a general underestimation among individuals about the impact AI could have on their personal roles. Company leadership should consider this as a signal to initiate educational campaigns and training to build awareness about AI and its potential influence on various job functions. It’s essential that employees understand the evolving landscape and are equipped with the skills and knowledge necessary to adapt to AI-driven changes, as this would not only alleviate anxiety but also facilitate smoother transitions and potentially harness AI for improved productivity and innovation.

Will AI Take Over Employee Positions?

The responses to the survey question regarding whether executives and managers believe AI will replace at least some employees at their company within the next three years present a diverse range of perspectives. Notably, a combined 27% believe that AI will replace employees, though the majority of this group (25%) think it will be a small number. On the other hand, a substantial 50% of respondents do not believe AI will lead to employee replacements. Furthermore, 23% are uncertain about the impact of AI on employee retention.

These findings indicate a level of skepticism or cautious optimism among leaders regarding the extent to which AI will immediately affect employment in their organizations. The relatively low percentage (2%) that believes a significant number of employees will be replaced by AI suggests that there isn’t a prevailing sentiment of a large-scale displacement imminent within the next three years. It’s also important to highlight the sizable portion that is unsure. This reflects the rapidly evolving nature of AI technology and its applications, which makes it challenging to predict its exact impact on employment with certainty. Given this data, it is apparent that while some leaders acknowledge the potential of AI to bring changes in the workforce, there is not an overwhelming concern for immediate, significant job losses within this timeframe. However, it’s imperative that companies continue monitoring AI advancements and considering its potential long-term implications on employment, and that they also foster an environment of adaptability and upskilling to prepare the workforce for technological shifts.

Leaders Evaluate Their Skills with AI Tools

The responses to the question regarding executives' and managers' self-assessment of their skills with AI tools suggest that the majority have limited experience or are at the early stages of familiarization with AI. A significant 31% reported having "No Experience" with AI tools. Adding to this, 32% consider themselves to be at a "Beginner" level, and another 10% as a "Struggling Novice." These figures indicate that roughly 73% of leaders have minimal to no experience with AI tools. On the other hand, only a small proportion consider themselves to have more advanced skills. About 12% rate themselves as "Advanced Novice," 10% as "Intermediate," and a mere 5% as "Advanced."

This data reveals a potential skills gap among leaders when it comes to AI tools. It suggests that while many are aware of AI and its potential impacts, as evidenced by previous survey results, a significant proportion lack hands-on experience or advanced skills in using AI tools. This could have implications for how effectively AI is implemented and utilized within organizations, as leadership plays a critical role in driving technological adoption. Training and development programs for executives and managers in AI tools might be necessary to equip them with the skills needed to effectively leverage AI in their respective roles and departments.

Leaders Estimate Employees’ Use of AI Tools

The survey data reflecting executives' and managers' perceptions of their employees' engagement with AI tools exhibits a striking trend; a majority believe that a small portion of their employees have interacted with major AI tools. Specifically, 29% think that only 10% of their employees have used AI tools, and 7% believe that none of their employees have. It's also noteworthy that 17% of the respondents believe that 50% of their employees have used AI tools. Only a minuscule proportion of leaders think that a vast majority of their workforce is familiar with AI, as shown by the low percentages at the higher end of the scale.

These insights suggest that there's a widespread recognition among leadership that AI familiarity is limited among their employees. This data should raise an alarm for company leaders. The low levels of AI interaction among employees signify a potential resistance or lack of readiness for AI-driven changes. This could be attributable to various factors including the preference for stability and predictability. To mitigate this, it is imperative that leaders take proactive measures to facilitate AI familiarization and training for employees, thereby aligning them with the impending AI-driven transformations.

Leaders Assess Employees’ Willingness to Adopt AI

The responses regarding how leaders perceive their employees' receptiveness to adopting AI technologies reveal a spectrum of attitudes. Notably, a combined 45% of executives and managers believe their employees are either “Excited” (10%) or “Cautiously Optimistic” (35%) about the adoption of AI. This suggests that almost half of leaders sense some level of positivity or openness among their employees towards AI integration. However, it is also evident that a significant portion of executives and managers perceive a lack of enthusiasm or outright resistance among their workforce. Specifically, 17% view their employees as “Indifferent,” while “Reluctant” and “Resistant” categories combined account for 34%. Additionally, 4% believe that their employees are “In Denial” regarding AI adoption.

This data indicates that there is a mixed perception among company leadership regarding how their employees feel about AI adoption. While there is a notable percentage that views the employee attitudes positively, there is also a significant portion that perceives skepticism, reluctance, or resistance. For companies looking to adopt AI technologies, these insights underline the importance of understanding and addressing the diverse attitudes among their workforce. Employers should consider engaging employees in dialogues to understand their concerns, providing education about the benefits of AI, and offering training and support to help them adapt to new technologies. These steps can contribute to building a more cohesive and positive attitude towards AI adoption across the organization.

Leaders Assess Executives’ Willingness to Adopt AI

The survey data regarding how leaders perceive the receptiveness of their fellow executives to adopting AI technologies shows interesting patterns. A total of 50% believe that the executives are either "Excited" (16%) or "Cautiously Optimistic" (34%) about adopting AI technologies. This denotes a sense of positivity and openness among the executive level towards AI integration. However, there is also a considerable percentage that perceives some form of skepticism or negativity among the executives. Specifically, 18% view them as “Indifferent,” and combined, 27% see them as “Reluctant” or “Resistant.” A small percentage (4%) perceive executives as being "In Denial."

Comparing these insights with the perceptions regarding the employees’ receptiveness from the previous question, we can observe certain distinctions. While both groups have a significant portion that is either “Excited” or “Cautiously Optimistic,” the executives are perceived to have a slightly higher level of excitement compared to the employees (16% vs. 10%). Conversely, employees are perceived to be more “Resistant” (14% vs. 10% for executives).

This data suggests that the executives may be somewhat more enthusiastic or optimistic about adopting AI technologies than the broader employee base. This might be due to the fact that executives are often more involved in strategic planning and decision-making, and hence, are likely to have a better understanding of the potential benefits of AI. On the other hand, employees might have concerns regarding how AI could affect their roles or job security, contributing to a slightly higher level of resistance.

Given these variations in perceptions and attitudes, it is essential for organizations to bridge the gap between executives and employees regarding AI adoption. This can be achieved through transparent communication, collaborative planning, education, and providing avenues for feedback and support. By ensuring that both the leadership and the employees are on the same page regarding AI adoption, companies can work towards a more harmonious and effective integration of AI technologies.