Source: Fortune
Summary
Despite predictions that AI and automation would lead to significant job losses, the reality is that the adoption of AI is slower than expected and has not resulted in widespread job displacement. The author, Peter Cappelli, argues that the cost of introducing AI is high, and the benefits are uncertain and may take years to materialize. Additionally, AI is not a replacement for human workers, but rather a tool that can augment their abilities. Cappelli suggests that the focus should shift from what AI is cutting (headcount reduction) to what it is growing (new products and solutions).
Our Reading
The announcement sounds familiar.
Peter Cappelli, a Wharton professor, is calling out the hype around AI and automation, citing a long history of exaggerated predictions about the impact of technology on jobs. This time, it’s Large Language Models (LLMs) that are supposed to revolutionize the workplace. But Cappelli’s research suggests that the adoption of AI is slower than expected, and the benefits are uncertain. The cost of introducing AI is high, and the ROI is unclear. Meanwhile, vendors are pushing the claims hard, and the media is amplifying the hype.
The reality of AI adoption is different from the fears. LLMs are expensive to introduce, and the biggest cost is the time and energy needed to configure them in your own organization and keep them up to date. The focus on eliminating low-skill work is misplaced, and the real benefit of LLMs will come from allowing us to do new things we haven’t thought of yet.
The strategy enters a familiar phase: overpromising and underdelivering.
Author: Evan Null
