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Reading 1: Global labour markets and workplaces in the age of

intelligent machines
Introduction:

A transformation of global labor markets and workplaces occurs and reshapes workplaces
since more functions previously performed by human resources are passed on to intelligent
machines
(Sch€afer et al., 2023). These disruptive technologies are altering the nature of human labor
and reshaping how work is done.

Despite some growth in labor productivity, the full potential of intelligent machines has yet to
be realized.

This research focuses on examining the role of human resources in the era of intelligent
machines and exploring the future of global labor markets and workplaces.

The works by Baird et al. (2022), Davenport and Euchner (T. 2023),
Fossa (2023) and Peng et al. (2023) indicate that the age of intelligent
machines just started. Therefore, machine technologies are character-
ised by moderate automatisation, retaining their dependence on human resources.

It suggests that machine technologies are still reliant on human resources, and attracting
foreign human resources through the global labor market is essential for productivity growth.

The article presents a new perspective where machine technologies complement rather than
replace human resources. It highlights the significance of human resources management in
the context of the Fourth Industrial Revolution and proposes support for their adaptation to
automation.

Discussion

The table 3 proposes a new basis for choosing models for organizing future workplaces,
focusing on outputs and considering both businesses and employees. ( đọc slide) This opens
up a wide field for further research, stimulates Industry 4.0 enterprises to increase labor
productivity, and provides reskilling and upskilling programmes.

Conclusion

This article shows that human resources are essential for labor productivity, and that robots'
expansion has little impact on productivity. It proposes standards for key statistical indicators
to enhance labor productivity management, and discusses implications for labor division
between human resources and machine technologies in future workplaces.
R3. The Rise Of AI In The Workplace
1. What exactly is AI ?
- New and innovative ideas that can help business leaders and entrepreneurs
stay ahead of the curve.
- AI refers to the ability of machines to perform tasks that would typically
require human intelligence (learning, problem-solving, and decision-making).
+ Microsoft is integrating AI into its platform: Power Automate, BI, and
ChatGPT
- AI is a capability that solves problems and works on questions that you may
not even be aware of. (better without human intervention)
-> Ex : design a robot that can walk
https://www.techopedia.com/the-squishy-robot-that-walks-the-pros-and-
cons-of-ai-seeing-things-that-we-dont

2. How can AI benefit your business ?


- Automating repetitive tasks, solving problems, and handling data analysis
=> free up employees to focus on more creative and strategic tasks.
(Efficiency and cost savings are key benefits of task automation in business
operations)
➜ Human roles will transition from labor intensive processes to finishing the
last mile of a project and communicating options and outcomes.
- Make better decisions by providing insights and recommendations based on
data analysis.
+ Example: An AI-powered algorithm can analyze customer behavior and
provide personalized recommendations.
Spotify -> AI DJ -> analyze customer songs type bases on top listening
songs -> provide a perfect album for them
- Stay ahead of the competition by providing a competitive edge.
+ optimize operations and gain insights into market trends
=> make smarter decisions and respond more quickly to changing
market conditions.
➜ Implementing AI in business isn't easy. It requires significant investment in
technology to build and maintain AI systems.
➜ But with the right strategy and approach, many businesses can benefit from
AI.
Reading 2: The aim of this Reading 2 is to outline how artificial
intelligence (AI) can augment the learning process in the workplace and
where there are limitations.
1. Understanding artificial intelligence as a tool in the workplace with
augmentation potential for human abilities:
● Human beings always developed and used technology for doing things
“better” than without the technical tool:
- We have known that, throughout human history, we always invented new
tools to help us do certain things. Neanderthal men created the first tools
from stone and bone for getting food more easily (Harari, Y. N. (2015).
Sapiens: A brief history of humankind. HarperCollins). So tools made from
stone and bone were our ancestor’s technology thousands of years ago. In
today’s world, AI may or will be, the sharp knife for every employee in
particular or for every business in general
- To figure out whether AI has an augmentation potential for human abilities in
the workplace, let’s have a look at two types of AI.
● Physical AI (the function of robots):
- Professional service robots go beyond, as they are not separated but closely
related to human beings for supporting them, e.g. for precise drug delivery or
carrying patients (Hamet and Trembley, 2017). They can be voice - or eye-
activated and could therefore be further developed as personal service robots
(Barrett et al., 2012).
● Virtual AI:
- Virtual AI is also dedicated to collaborative task performance. The phrase is
typically in use in work processes where it is not so much the physical machine
(computer) that is in mind, but the software that is in use, as it is relevant for
information processing and decision making in continuous interrelation with
individual work behavior.
- The shared point of interest across these use cases is that the overall capacity
of AI in information processing, accumulation of experiences and
identification of relevant patterns without any signs of fatigue promises to be
much higher than that of an intelligent and experienced human being.
2. Collaboration potential between virtual artificial intelligence and individual
intelligence to be considered in job design:

● Complementarities between virtual AI and individual intelligence that help to


compensate for weaknesses in both directions:
- Both virtual AI and individual intelligence have strengths and weaknesses, like
you can see from Table 1.
- Individual intelligence has a weakness in information processing, which can be
outperformed by AI. AI misses flexibility between tasks and domains. It is not
transferable to any other context, and there is a risk of faulty algorithms and
unspecified probability of errors (Topol, 2019; Dewey and Wilkens, 2019). This
is the scope for individual intelligence, which shows higher sensitivity within a
domain and also allows to cross and transfer between domains to gain new
insights.
- Example: Imagine you're a doctor looking at an MRI scan, like a picture of the
inside of someone's body. Sometimes, these pictures can be blurry or
confusing, making it hard to tell if something is wrong. Here's where AI comes
in:
+ AI is like a super-smart assistant. It can analyze the MRI scan and highlight
areas that might be concerning, just like pointing out something interesting in
a photo.
+ This helps doctors see things they might miss, leading to earlier diagnoses of
diseases like cancer. This can be crucial for starting treatment sooner, which
can improve the chances of success.
+ However, AI isn't a doctor. It can't understand the patient's full medical
history or their individual circumstances.
+ So, the doctor is still the one who makes the final decision. They consider the
AI's findings, their own expertise, and all the information they have about the
patient to decide on the best course of action.
● The consequences for integrating AI in the workplace:
- It is the accumulation of expertise that makes AI interesting for use in many
fields with critical decision-making – such as diagnosis, financial services,
insurance, business model development – as long as risk factors resulting from
black-box decision are reflected seriously and do not remain underestimated
(London, 2019; Toh et al., 2019; Topol, 2019).
3. The contribution of artificial intelligence to enhance individual
competencies:
- Helpful to support information processing and coping with complexity
- Support feedback processes on a technological basis
- AI is not able to transfer knowledge to new domains, and depends on rules
and categories limited.
● Cooperation => lacks the social skills and emotional understanding needed to
interact effectively. Cooperation involves things like understanding others'
feelings and knowing when to give back, which are skills that come from real-
life experience, not just data.
➔ AI has limitations in transferring knowledge to new domains and is unable to
contribute to problem-solving via cooperating with others.
Exx: hospitals can profit from information processing capacity, but at the same
time, might suffer in trust-building communication, as this tends to lack behind if
other fields become more prevalent by using AI.
4. The contribution of artificial intelligence to organizational learning:
● AI in the workplace is not just an issue of supporting learning on an individual
level but also on a system level. This system-level learning is the unit of
analysis in organizational learning theory.
● Levels of learning and face the change of the organizational knowledge Argyris
and Sch€on (1978; Argyris, 2003):
- (1) single-loop learning – this is the adaptation of practices to reach objectives
and operationalized targets;
- (2) double-loop learning – describes the redefinition of objectives and targets,
including related practices
- (3) deutero learning – describes the meta-system of interpreting
organizational change processes and their entire logic
● As AI has a high potential in identifying patterns, there is a support function
that can enhance single-loop learning in terms of monitoring practices and
outcomes whether they are in line with key targets or not.
➔ AI-based environmental screenings can prepare double-loop learning but have
no initial function integrated in the learning system.
An even more severe limitation is that these three different levels of organizational
learning cannot be reached in parallel by using machine learning methods.
➔ AI has a potential for enhancing organizational learning processes, especially
for single-loop learning; however, is limited and unidirectional
I. Reading 4

R4. The future of jobs in the age of AI, sustainability and


deglobalization
- There is no doubt that the future of work will be disruptive, but it need not be
dystopian.
- The Future of Jobs Report 2023 shows how to empower people in a world of
economic uncertainty and advancing AI.
1. New wave of transformation
- Global COVID-19 pandemic : lockdowns -> job losses
- Disruption of war in Ukraine
- Soaring energy and food prices => decline in wages
➜ Potentially poses a new wave of transformation : technology adoption,
➜ High uncertainty of workers’ future
➜ Need forecasting not to generate firm predictions, but to provide thinking
about the challenges ahead and preparing better for the future.

2. The Future of Jobs Report 2023


- Assesses the impact of macro trends, as well as technological change on jobs
and skills over the next 5 years.
+ Nearly a quarter of all jobs (23%) globally will change
+ Across 45 economies, covering 673 million workers, 69 million new jobs are
expected to be created and 83 million to be eliminated
+ Increasing consumer awareness of sustainability issues
=> High demand in renewable energy engineers, environmental protection
professionals => growth of approximately 1 million jobs.

a. Agriculture and education are jobs growth areas


- The largest absolute gains in jobs: education (3 million jobs) & agriculture (4
million jobs)
+ By demographics and applications of new technologies
- The new economic geography created by shifting supply chains and a greater
focus on resilience over efficiency
=> create net job growth in Asia and the Middle East especially.

- Technology will create structural churn from new technology adoption


+ a quarter of companies : job decline and more than half : job growth .
b. Reskilling on the rise
- Human-machine frontier is shifting to new terrain
+ Tasks requiring reasoning, communicating and coordinating – all traits
with a comparative advantage for humans – are expected to be more
automatable in the future

- Generative AI is expected to be adopted by nearly 75% of surveyed companies


and is second only to humanoid and industrial robots in terms of job losses
=> affect bank tellers, cashiers, clerks, secretaries and accounting.
- Almost half of an individual’s skills (44%) will need to change on all jobs
- Skills with highest companies demand:

collaboration between humans and AI not only enhances productivity but also
enables employees to delve into higher-value tasks like strategic problem-solving.
https://www.linkedin.com/pulse/ai-agents-can-automate-repetitive-tasks-freeing-
up-munro-m-sc-mba-9ycac/
R6. Jobs lost, jobs gained: What the future of work will
mean for jobs, skills, and wages
- There is no doubt that technologies boost productivity and enhance our lives,
but the fact that they will eventually replace part of the human labor has
generated much public concern.
- According to McKinsey Global Institute’s report, under different scenarios
through 2030, the number and types of jobs that might be created compared
to the jobs that could be lost to automation => a wide range of possible career
changes in the years to come, with significant effects on earnings and skill
levels in the workforce.

1. What impact will automation have on work?


- In almost 60% of professions, at least 1/3 of the component tasks might be
automated => significant changes to the workplace that would affect all
employees.
- The potential impact of automation on employment varies by occupation and
sector.
+ Physical tasks performed in predictable situations are the ones that are
most susceptible to automation. (operating machinery, preparing fast
food)
+ Collecting and processing data can be done better and faster with
machines.
+ On the other hand, jobs in unpredictable environments will generally
see less automation by 2030 (gardeners, plumbers, or providers of
child-care and elder-care), simply because they are technically difficult
to automate and often command lower wages.
+ Automation will have a lesser effect on jobs that involve managing
people, applying expertise, and social interactions.
- However, even when some tasks are automated, employment in those
occupations may not decline but rather workers may perform new tasks.

2. What are possible scenarios for employment growth?


(McKinsey Global Institute’s report) Researchers model 6 potential sources of
new labor demand that drive employment growth as well as net automation.
All of these create 10 to hundreds million jobs in different categories.
a) Rising incomes and consumption (especially in emerging economies):
- The global consumption is undoubtedly going to increase by 2030, not only
benefiting the countries making the money but also those exporting to them.

b) Aging populations:
- As people age, they spend more on healthcare and personal services => lead
to a need for more jobs in healthcare, including doctors and nurses.

c) Development and deployment of technology:


- More jobs in technology are expected, as spending on technology is predicted
to grow by over 50%, 10 years from now.
- Additionally, there are scenarios where more investments in certain areas
could create even more jobs, depending on decisions made by governments,
business leaders, and individuals.

d) Investments in infrastructure and buildings


- If we invest more in infrastructure and buildings, it could create a lot of new
jobs. => help bridge infrastructure gaps & address housing shortages.

e) Investments in renewable energy, energy efficiency, and climate


adaptation
- Investing in renewable energy (wind, solar) and technologies to make energy
use more efficient => new jobs in manufacturing, construction, and
installation => helps address climate change while providing employment
opportunities.

f) ‘Marketization’ of previously unpaid domestic work


- This service is on an upward trend, and it is speculated to be going strong in
the next 10 years.

=> Hundreds and hundreds million individuals could be displaced by


automation, and need to find new jobs by 2030 around the world. And
switching job and learning new skills are also required if they want to find
their way into the new world.

3. Will there be enough work in the future?


- With economic growth, innovation, and investment, there's potential to
create enough new jobs to counter the impact of automation.
- The main challenge lies in ensuring that workers have the necessary skills and
support for transitioning to these new jobs. Failure to manage this transition
could lead to increased unemployment and lower wages in some countries.
- Different scenarios are created based on how fast displaced workers find new
jobs.
+ Quick reemployment within a year: lifts the economy,
maintaining full employment, higher wage growth, and
increased productivity.
+ However, if some workers take years to find new jobs: short to
medium-term unemployment may rise, resulting in slower
average wage growth and potentially lower overall demand and
long-term growth.

II. Reading 5 & 7


R5. AI WON’T REPLACE HUMANS - BUT HUMANS WITH AI
WILL REPLACE HUMANS WITHOUT AI

=> The authors emphasize that AI and machine learning are transforming how
businesses operate, with AI-first companies reshaping their models and processes.
They stress that embracing digital technologies is crucial for staying competitive, as
we are in an AI age where technology permeates our personal and professional lives.
To adapt, organizations must address the organizational challenges of incorporating
these technologies.

The author suggests two key strategies for navigating this evolving landscape:
adopting a learning mindset to promote continuous learning and prioritizing change
management to enable effective adaptation to technological advancements. The
authors also highlight the impact of technologies like web browsers and generative
AI on information access and processing, underscoring the importance of
understanding and leveraging these innovations for success in a rapidly changing
environment.
R7. HOW CAN ORGANIZATIONS PREPARE FOR GENERATIVE AI?
According to Baker McKenzie's 2022 North America AI survey, corporate executives
may be underestimating the risks of AI to their organization. Many firms are
unprepared for AI, lacking the necessary control and knowledge from key decision-
makers to manage risk.
How is generative AI changing the risk landscape?
- In this next phase of generative AI, fundamental AI adoption principles like
governance, accountability, and transparency are more crucial than ever, as
are concerns about the implications of badly deployed AI.
- Another problem is data privacy and breaches, which might easily arise as a
result of employee data collecting without anonymization.
- Generative AI has also prompted issues about the ownership of third-party
program inputs and outputs, as well as potential copyright infringement.
- Governments and regulators have been hurrying to put in place AI-related
laws and regulatory enforcement tools.
How can organizations enhance their AI preparedness?
- Companies deploying AI must also ensure that there are systems in place that
provide a clear knowledge of the data sets used, algorithmic functionality, and
technological limits.
- In the long term, stakeholders from legal, regulatory, and private sectors
should work together to develop legislation, codes of practice, or guidance
frameworks that acknowledge the opportunities and risks of AI.
The final outlook for AI
By having a secure framework, organizations can confidently deploy AI technology
and reap its benefits.

R8. AI Is Changing Work — and Leaders Need to Adapt


Challenges for Business Leaders:
● Business leaders face the challenge of delivering financial performance
while navigating significant investments in hiring, training, and new
technologies to support productivity and growth.
Insights from Research:
● Recent research (MIT-IBM Watson AI Lab) provides insights into the
changing nature of work due to AI, emphasizing the need for a strategic
approach to workforce adaptation.
Three Key Strategies for Leaders:
● Reallocate Capital Resources: to accommodate broad AI adoption,
potentially increasing research and development spending.
● Invest in Workforce Training: Recognizing the importance of
stakeholder impact, companies should invest in talent development
and workforce training, focusing on both technical and "people skills."
● Education and life-long learning: Collaboration between business
leaders, policymakers, and stakeholders is essential to address societal
impacts, including the potential disproportionate impact on mid-wage
workers. Investment in diverse education models is crucial.

In summary, the key lies in strategic adaptation, including capital reallocation,


workforce training, and collaborative efforts to address the societal implications of
AI, ensuring a balance between productivity gains and the well-being of the
workforce.

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