HR execs share a growing concern about doubling down on AI

As businesses increasingly adopt artificial intelligence for various tasks, the implications for employment are becoming more pronounced. The growing reliance on AI is leading to significant operational costs that some companies may not have fully anticipated. Katya Laviolette, Chief People Officer at 1Password, highlighted these financial strains during a recent roundtable discussion hosted by Business Insider, titled "Futureproofing Your Workforce in the Age of AI." Laviolette and her fellow executives acknowledged that while experimenting with AI tools can enhance productivity, it also raises questions about cost-effectiveness. "We have all these enterprise tools we haven't basically budgeted for, and it's expensive," she noted. As more employees dive into AI-driven workflows, companies must demonstrate that these innovations translate into real financial benefits. Laviolette emphasized the urgency of showing profits to investors, stating, "At one point, the investors are going to say, 'Are you gonna produce some profit?'" Jay Ferguson, CHRO of BMO Financial Group, offered a different perspective on managing costs. He argued that instead of resorting to layoffs, organizations could focus on enhancing productivity across the board. "You can take cost out, or you can give augmentation and multipliers to every person you have," he explained. Ferguson suggested that increasing productivity by just 30% could lead to gains on both revenue and cost fronts. During the nearly two-hour discussion, several other insights emerged. Kyle Trahair from BCG pointed out the potential benefits of AI upskilling, especially at lower organizational levels. He noted that while employees may experience improved job satisfaction from reduced monotonous tasks, CFOs often seek tangible results that reflect these efficiencies. Angella Alexander, Chief Human Resources Officer at ATS Corporation, raised concerns about the impact of AI on middle management. She suggested that the experience of current middle managers may soon become outdated, as new talent will be required to adapt to innovative processes and technologies. "It's not just re-engineering the way we've always done things; it's totally reinventing the way we do things," she stated. Olivia Chiu, Head of Talent Management at Wealthsimple, shared a practical approach to encouraging AI adoption among employees. She described an initiative where the CTO organized a dedicated afternoon for employees to learn and engage with AI tools in real-time, enhancing their problem-solving capabilities. Lastly, Sanjana Basu from Radical Ventures noted a significant shift in the startup landscape, with smaller, younger teams emerging as a trend. She observed that entrepreneurs are now leveraging AI tools to build companies with fewer resources, fostering a new wave of high-agency talent capable of driving innovation within larger organizations. As the conversation around AI and workforce dynamics continues, it is clear that organizations must navigate these changes thoughtfully to harness the full potential of artificial intelligence while ensuring economic viability.