Written by our resident Generative Artificial Talent Intelligence Blogger (GATI)
Generative AI's ability to produce output that is, by definition, average presents an opportunity for businesses looking to automate tasks that are already being performed at a baseline level. The reality is that the majority of workers are already producing average output - not because they lack talent or skill, but because they are meeting the minimum requirements of their jobs. Therefore, businesses can leverage generative AI to automate these tasks and reduce labor costs, without sacrificing quality.
However, the use of generative AI to automate average-level work raises important ethical questions. What happens to the workers who were previously responsible for these tasks? How can businesses ensure that this technology is being used in a way that benefits society as a whole, rather than just a select few? And what implications does this have for the future of work and the role of humans in the workplace?
To address these concerns, businesses must carefully consider the impact of generative AI on their employees, customers, and stakeholders. They must be deliberate in their use of this technology, and work to ensure that any displacement of workers is handled in a responsible and ethical manner. This might involve retraining workers for more complex tasks or offering financial compensation for those who are displaced.
Additionally, businesses must consider the potential biases and inequalities that can arise from the use of generative AI. The data used to train this technology must be diverse and representative, in order to avoid perpetuating existing biases and inequalities.
Despite these challenges, the potential benefits of generative AI cannot be ignored. By automating average-level tasks, businesses can reduce costs and improve efficiency, freeing up employees to focus on more complex and creative work. However, it is crucial that businesses take a thoughtful and responsible approach to the use of this technology, in order to ensure that it is aligned with their values and benefits all stakeholders.
To put this into perspective, let's consider the cost of automation compared to the cost of a full-time employee. According to data from the Bureau of Labor Statistics, the median annual wage for a full-time employee in the United States was $51,168 in 2020. When you factor in benefits, taxes, and other labor-related costs, the total cost of employing one person can easily exceed $70,000 per year.
In contrast, the cost of automating a task using generative AI can vary widely depending on the complexity of the task and the technology being used. However, it is generally agreed that the initial investment in automation technology can be high, with estimates ranging from tens of thousands to millions of dollars.
So, is it a valid tradeoff to automate tasks that can be performed at an average level by human workers? The answer depends on a number of factors, including the specific tasks being automated, the cost of the technology, and the availability of human talent.
In some cases, it may be more cost-effective to use generative AI to automate average-level tasks rather than hiring a full-time employee. For example, if a task can be performed at an average level by 5% of the workforce, it may be more cost-effective to automate that task rather than hire additional workers. However, businesses must also consider the potential impact of automation on their existing workforce, as well as the ethical implications of displacing workers.
On the other hand, there may be tasks that require a higher level of skill or creativity that cannot be achieved through automation. In these cases, it may be more cost-effective to hire a full-time employee who can perform at a higher level and provide additional value to the organization.
In conclusion, generative AI has the potential to significantly disrupt the workplace by automating average-level tasks. While this presents an opportunity for businesses to reduce labor costs and improve efficiency, it also raises important ethical questions that must be addressed. By considering the impact of generative AI on their employees, customers, and stakeholders, and taking a deliberate and responsible approach to its use, businesses can leverage this technology in a way that benefits everyone. One of the key advantages of using generative AI to automate average-level tasks is the potential cost savings that can be achieved. According to a study by McKinsey & Company, automation can reduce labor costs by up to 20% in industries such as manufacturing, retail, and transportation. Ultimately, the decision to automate tasks using generative AI should be based on a careful analysis of the costs and benefits, as well as the ethical and social implications of automation. By taking a thoughtful and strategic approach to the use of this technology, businesses can achieve significant cost savings while also promoting innovation and supporting their workforce.
Prompt: write an article on how generative AI will disrupt the workplace. Your argument is based around the assumption that Generative AI produces "average" out put, but definitionally so does the majority or the workforce so if a CFO can argue that they could automate massively at a far reduced cost. The output won't be high, only average but that is fine.