Nearly half of supply chain organizations today are investing in generative artificial intelligence, but just 13% of senior executives say their companies are prepared to implement the changes they’re hoping for, due to gaps between their frontline workforce and GenAI, according to McKinsey. To ensure successful adoption of the technology, companies must invest in change management and capability building.
How, then, can leaders implement AI effectively, ensuring that their investments yield returns while empowering frontline workers?
Preparation is key. There’s no such thing as overplanning, especially when implementing new technology in the workplace. Executives need to assess how ready their frontline workforce is. Leaders should begin by asking key questions such as: How tech-savvy are my employees? How will this technology fit into their workflows? Will they need basic general tech training, or just specific training for the new technology?
A study by Microsoft revealed that 55% of frontline workers have had to adapt to using digital tools on the fly, with no formal training or practice. This has led to frustration among workers, with nearly half worrying that they could lose their jobs if they don't adapt to new tech. This situation not only hampers companies' efforts to leverage their AI investments effectively, but also leaves employees feeling disheartened and concerned about job security.
Additionally, leaders need to consider if they’re buying the AI technology as is, or if it will require new infrastructure changes that need to be subsequently managed by the workforce.
What’s on Everyone’s Minds
While AI is set to redefine the way people work, some jobs can’t be replaced by the current standard of AI. This includes roles in the supply chain that rely on human expertise, such as quality-control inspectors and logistics coordinators.
Understandably, employees are apprehensive about this transition; even executives share these concerns. However, AI has already established its presence in the sector and is expected to grow further.
So how do leaders discuss AI changes in the workforce?
Some may advocate for abruptly introducing technology and expecting the workforce to adapt. However, this approach neither fosters a healthy work environment nor ensures effective AI adoption. It's crucial to remember that employee satisfaction significantly influences success.
Leaders must prioritize clear and concrete communication to foster a working environment in which employees feel heard. They should develop a communications plan that emphasizes directness. It's essential to be upfront and thoughtful with your workforce, explaining exactly what AI technology is being implemented, how it's being used, and how it's expected to work alongside them.
A critical component of this communication plan is the incorporation of genuine, empathetic acknowledgments of employee concerns. As organizations collectively navigate transitions, it's crucial to recognize that while not all answers are available, understanding and addressing employees' perspectives is paramount.
It's natural and acceptable for staff members to feel apprehensive about change; many leaders likely share similar sentiments to varying degrees. Effective communication in these situations requires a delicate balance between projecting confidence and demonstrating empathy. By authentically addressing concerns while maintaining a clear vision, executives can foster trust and guide their teams through periods of change.
If possible, conduct this communication in a format that allows employees to openly voice their opinions and concerns — akin to a town hall meeting. Sending such an update via company-wide email may come across as impersonal and artificial.
The AI Road Ahead
As workforce leaders create a plan for employee AI adoptions, remember — it’s a marathon, not a sprint, and fostering an environment where employees feel empowered to speak up doesn’t happen overnight. But what’s next?
Town halls shouldn’t be a one-time symbolic action. Rather, they should be regularly occurring, ideally once a quarter. Technology is ever-adapting, and these check-ins serve dual purposes: assessing employee well-being and evaluating the implementation, usage and effectiveness of AI technologies.
Whether leaders assess the needs of their employees before or after selecting their tools, it remains crucial to look out for certain signals when evaluating new technology in an already oversaturated market. For AI to be effectively adopted by the workforce, it’s important to prioritize tools that take a human-first approach. This involves critically researching and determining whether the technology is designed to enhance employees' work and make their lives easier, while also staying cautious of tools that make exaggerated or aggressive claims.
Additionally, in your research, make sure that comprehensive training for employees is easily accessible. Ensuring that employees understand how to use the technology effectively is vital. This not only boosts their confidence and job performance, but also helps to achieve a better return on investment for the company's AI initiatives.
As AI reshapes the supply chain industry, successful adoption depends on thoughtful implementation and genuine engagement with frontline workers. Clear communication, addressing concerns, and choosing the right technology partners are key to navigating this transition. By prioritizing a human-first approach with regular check-ins and upskilling opportunities, companies can create an empowered workforce that maximizes the potential of AI investments.
Alon Peleg is chief operating officer of aiOla.