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Adoption of AI at work in APAC

27 Oct 2021

  • In conversation with Oracle Asia Pacific HCM Cloud Applications Strategy Head Shaakun Khanna
By Shenal Fernando Artificial Intelligence (AI) is increasingly being utilised in business organisations in the Asia Pacific (APAC) region. This is supported not only by the organisations’ desire for increased efficiency and productivity, but also by the increased support and enthusiasm among employees regarding the use of such technology in their workplaces.  Machines, analog or digital, have always played a key role in businesses. Similarly, the recent advancements observed in AI and machine learning, ranging from conversational user interfaces, to blockchain, to the Internet of Things (IoT) have also been incorporated in mainstream business operations.  As business organisations incorporate AI in their operations and processes, the relationship between humans and machines has undergone a drastic transformation. Similarly, the dynamics and expectation between the employee and the managers have undergone metamorphism. Business organisations are increasingly incorporating AI technology in all facets of their operations, including human resources management, talent management, workforce management, and payroll.    Why AI at work? In a business, organisation data is constantly being accumulated from job candidates, worker activities, customer interactions, and business processes. Such big data can be leveraged to train algorithms in order to predict job candidate and worker talents and capabilities, gauge and monitor performance, identify and forecast customer preferences, identify skill deficiencies and recommend the required learning experience, identify future skill requirements, link workers to clients, judge employees’ state of being and emotions, identify disruptive patterns in worker behaviour or business processes, and a multitude of other practical AI applications.  Speaking to The Morning Business, Oracle Asia Pacific HCM Cloud Applications Strategy Head Shaakun Khanna stated: “Studies have revealed that only around 30-35% of office hours are productive, and therefore the use of AI of in businesses is evolving to take over a lot of mundane tasks to thereby free up a lot of time for employees to focus on more strategic things.”  He further provided that since the shelf life of skills has reduced considerably and other studies have shown that about 40% of the current global skills will become redundant in the next two to three years, “AI is playing a very important role in helping individuals and organisations understand the new skills that are required. At Oracle, for example, we have launched the dynamic skills platform, which attempts to understand how people are working within a particular organisation/industry/segment and identify the current and future skills that organisations will require”.   Furthermore, AI plays an important role in the standardisation of the definitions of similar skills by identifying a taxonomy of required skills through machine learning. Accordingly, the AI engine of Oracle’s dynamic skills platform has successfully consolidated over 30 million different skill sets into about 12,000 buckets of skills, explained Khanna.  In addition, AI is capable of recommending to employees the skills they should be learning, considering their current role or based on their career aspirations.  The use of AI in learning experience platforms provides the employees with “just-in-time learning and just-in-quantity learning”. “Because the shelf life of skills has reduced, employees must learn very quickly, learn whatever is required, use it and move on,” added Khanna.    In a business, employees would ideally prefer to have easy access to the right information at the right time in fulfillment of their work. However, such accurate delivery of data is near impossible for humans, due to the sheer scale of the information involved.  While AI in its current evolution may not be capable of carrying out overly complex work, it is capable of carrying out work at immense speed and scale. Therefore, through the use of AI in the workplace, businesses can automate mundane tasks, such as the delivery of the required information, when needed at incredible scales.    Economic impact of AI The adoption of AI at the workplace is increasing at an unprecedented rate in comparison with previous technologies, due to the potential economic benefits of utilising AI. According to PWC, AI is forecasted to contribute $ 15.7 trillion to the global economy by 2030; greater than the combined current output of China and India. Of these expected gains from AI, $ 6.6 trillion will be generated from the resulting increased productivity and $ 9.1 trillion will arise from consumption-side effects.  The economic impact of AI on business organisations includes productivity gains from businesses automating processes (which includes robots and other autonomous machinery), productivity gains from augmenting their existing labour force with AI and developing skills of employees through AI intervention, and increased consumer demand resulting due to availability of personalised and high-quality AI-enhanced products and services. Although AI technology is still in its infancy, the realisation of its economic potential has spurred business organisations to invest in AI technology and ensure their incorporation in business operations. According to a report by the IDC in 2021, spending on Future of Work (FOW) technologies – which includes AI, IoT, and augmented reality/virtual reality (AR/VR) – is forecasted to be nearly $ 656 billion in 2021. FOW spending 2021 will be largely towards collaborative robotics, operational performance management, and automated customer management.  FOW is the shift in the traditional work model to one that fosters collaboration between humans and machines, enables new skills and work experiences, and involves a work environment that isn't bound by time or physical space. IDC further forecasts investment in technologies supporting FOW initiatives to exceed $ 1 trillion worldwide by 2024. Recognising the potential economic impact of the use of AI in business, the Governments of China, Singapore, and South Korea have invested heavily in building AI ecosystems where  AI-driven companies and their innovative business models can grow and mature.    Importance of AI in the aftermath of Covid-19  The Covid-19 pandemic left many employees feeling lonely and disconnected from their own lives, and this was particularly apparent in the APAC region. This was recognised in the 2021 AI@Work study “The Year Employees Claim the Driver’s Seat” conducted by Oracle and Workplace Intelligence, an HR research and advisory firm. This study involved 14,639 employees, managers, HR leaders, and C-level executives across 13 countries, of which 6,111 respondents were from the APAC region.  According to the findings of the study, the extended lockdowns and continued uncertainty due to the pandemic left many workers in emotional turmoil, feeling like their lives and careers were out of control. In the APAC region, over 80% of workers stated that the past year negatively impacted them, with many struggling financially, suffering from declining mental health, lacking career motivation, and feeling disconnected from their own lives. Moreover, 77% felt they were stuck in their personal lives, experienced anxiety about their future, and felt trapped in the same routine.  However, the study also revealed that a majority (78%) of workers in the APAC region felt that their companies were more concerned with protecting their mental health now than before the pandemic. Accordingly, through the incorporation of AI technology in HR applications, organisations will be able to not only gauge the emotional state of their employees, but also provide a personalised experience to each employee.    Due to the pandemic and the resulting protracted travel restrictions, most business organisations embraced working from home which in turn exacerbated the feelings of loneliness and the disconnect Ness experienced by employees.  Khanna stated: “When people work remotely, their biggest challenge is regarding feeling empowered, feeling enabled, and having access to the right kind of information. Now AI is playing a very important role in ensuring that people have the right kind of experience and ensures people have access to the right kind of information at the right time on the right platform.”  Remote working creates perceptions of being distant, and is devoid of the softer aspects of a vibrant workplace. Therefore, organisations are utilising AI to bring a near physical experience to their workforce. Organisations like Paytm are utilising AI-driven chatbots to gauge employee sentiments, carry out rule-based transactions, and address employee queries. AI is also recreating experiences for candidates and making the recruitment process seamless in a virtual environment through AR/VR applications/platforms. Despite the struggles over the last year, 93% of APAC employees used the past year to reflect on their lives, and 90% said the meaning of success has changed for them since the pandemic, with work-life balance, mental health, and workplace flexibility now emerging as top priorities for employees.  However, 86% of APAC employees are dissatisfied with their employers’ support and are looking for organisations to provide more learning and skills development, 84% of employees are ready to make a career change, but only 20% of employees want to switch organisations. The majority want to gain new skills and advance their education, earn a promotion, or take on a new role at their current company. Therefore, to retain and grow top talent, it is imperative that employers leverage AI technology to provide their employees with the opportunity for career and skill development.     Employee attitude towards AI In the APAC region, in addition to the increasing adoption of AI technology by businesses, there appears to be a shift in perceptions regarding the use of AI, and a majority of employees in the APAC region have expressed enthusiasm about the use of such AI technology in their workplaces.  This is highlighted by the fact that, in the Indian subcontinent, over 92% of employees believe that robots/AI can support their career development better than humans, which is considerably higher than the global average of 82%.   Moreover, 55% of people globally and 81% of people in the Indian subcontinent have stated that they are more likely to stay with a company that utilises AI to support their role.  In the AI@Work 2021 study, it was further recognised that 89% of employees in the APAC region wanted technology to help define their future by recommending ways to learn new skills, identifying skills they need to develop, and by setting out the next steps to take to progress towards career goals. Similarly, 82% of respondents from APAC would make life changes based on robot recommendations. 88% believe robots can support their careers better than a human by giving unbiased recommendations, delivering resources tailored to their current skills or goals, or quickly answering questions about their career. Such employee attitudes, as well the desire to retain/obtain competitive advantage, is expected to compel business organisations, particularly in the APAC region, to increasingly adopt AI technology in their operations.  Accordingly “the diffusion of AI technology among businesses in the APAC region will snowball over the next two to three years,” added Khanna.    Bottlenecks to adoption of AI The primary bottleneck to the adoption of AI in business organisations is the lack of availability of data, since a majority of organisations do not possess appropriate mechanisms to capture said required data. In addition, organisations are not fully aware of certain of the exact data points which are relevant. Furthermore, according to Khanna, flow of data may be restricted, or the company may be unable to feed the necessary data to the AI engine because different facets of its operations and HR management are governed by siloed applications with different technologies and integration points. Another bottleneck is the failure of most HR management to adapt their mindset and evolve with the rate of development of the HR applications of AI technology. In many organisations, the HR management has proved inflexible, and has refused to move beyond the traditional HR policies. For example, the traditional way in which talent is assessed and hired, or the continuance of requiring specific education qualification as a criterion in recruitment are outdated HR policies that must be replaced with a more data-driven approach involving AI technology.  Additionally, the lack of adequate infrastructure and employees’ fear of being replaced or additional burdens being imposed may also limit the adoption of AI in business organisations.

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