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Fast Company
05-05-2025
- Business
- Fast Company
To realize AI's potential in the workplace, do one thing
The Fast Company Impact Council is an invitation-only membership community of leaders, experts, executives, and entrepreneurs who share their insights with our audience. Members pay annual dues for access to peer learning, thought leadership opportunities, events and more. In just a few short years, generative artificial intelligence has begun demonstrating its tremendous business potential. Stanford University's latest AI Index report reveals that global corporate investment in AI grew nearly 45% in 2024 to reach $252.3 billion. With private investment in generative AI up 8.5 times over 2022 levels, forecasts suggest that AI could soon contribute trillions of dollars to the American economy alone. By 2028, agentic AI, the next stage in AI's evolution, could be making at least 15% of day-to-day decisions at work and bring greater efficiency, productivity, and innovation. We're already seeing how AI is creating new businesses, products and services with the potential to expand access to new quality jobs and build new sources of wealth. Today, workers are using AI to inject creativity into their current jobs and start and grow their own businesses. Two-thirds of small businesses that use AI say their own employees are introducing AI tools to the workplace to improve operations, reduce costs and spark innovation. Many organizations are understandably focused on the near-term time- and cost-savings this emerging technology brings about. But pure efficiency won't unlock the true value of AI; that will require tapping into the expertise and creativity of their employees. To fully realize AI's potential to revolutionize our economy, we need to put workers at the center of the process of deciding where and how it shows up in the workplace. What does that look like in practice? AI training First, organizations should offer more AI training—from basic literacy to implementation. AI usage at work is surging, according to a new study from my team at JFF. Two years ago, only 8% of individuals used AI at work. Today, it's 35%. Those who use AI say AI is making them more efficient—and their jobs more interesting—by reducing the number of tedious tasks and allowing them to focus on more strategic and creative work. More training means more people experiencing these benefits and contributing to decision making around AI. Yet our survey also found wide training gaps. Fewer than one third (31%) of workers say their employers provide training on AI fundamentals or specific AI tools and systems. Slightly more than one third (34%) of employees not receiving AI training at work say they want their employer to offer it. This lack of access to training is creating barriers to the effective implementation of AI at work. Previous JFF research shows that nearly 60% of small businesses cited workforce readiness as the most common barrier to incorporating AI technology into their businesses. To overcome that barrier, organizations can start by providing affordable and practical AI literacy training that help employees learn how to get the most out of AI and become responsible users of this emerging technology. Employee-driven innovation Second, organizations should catalyze employee-driven innovation. Workers are already eager to use AI: according to JFF's recent survey, 20% of employees say they're taking the initiative to use AI at work in the absence of formal direction from their employers, while nearly 30% of workers are leveraging AI tools for strategic growth and innovation. There's a good business case to be made for bottom-up transformation. Research suggests that when workers are asked for their input, organizations are more likely to make effective use of AI tools and improve the quality of workers' jobs. To unlock growth using AI, businesses should involve their employees in piloting and deploying AI tools and processes across multiple roles and functions throughout an organization. Frontline employees—experts on their own workflows—are often in the best position to help improve and refine development of AI tools and processes. They're the ones companies should call on to find uses of AI that can create value and drive innovation. AI and human collaboration Finally, organizations should reconsider how their employees spend their time, the nature of the work they do, and their unique skills so they can unlock the best parts of collaboration between AI and humans. The immediate goal of AI implementation should be about enabling workers to prioritize work that creates new products, services and value that helps businesses grow. Collaboration between humans and AI has enormous potential. As a Harvard Business School working paper suggests, AI can help professionals significantly boost performance, expertise, and social connectivity in team settings. As AI becomes more capable of making its own decisions and completing complex tasks, humans will spend more time supervising AI, discerning and evaluating AI outputs, and managing interpersonal and collaborative activities with other humans. We've also seen that AI appears to significantly increase the value of human leadership in interpersonal and highly cognitive tasks like staffing organizations, building relationships, and guiding and motivating teams. Employers have an opportunity to prepare for this shift by designing high-quality jobs—and involving their workers in this process—that can get the best out of collaboration between humans and AI. The transformation of work is underway. Businesses seeking to navigate it should support employees in their earnest desire to develop AI literacy and skills, catalyze creativity and innovation throughout the organization, and intentionally redesign jobs to unlock the strengths of both AI and humans. Previous technological revolutions have shown that the benefits of progress are not distributed equally. But if companies keep their employees at the center, they can fulfill AI's potential as a force to expand access to quality jobs and economic opportunity for all.
Mint
26-04-2025
- Business
- Mint
Companies are struggling to drive a return on AI. It doesn't have to be that way.
AI adoption among companies is stunningly high, but most of them are struggling to put it to good use. They intuit that AI is essential to their future. Yet intuition alone won't unlock the promise of AI, and it isn't clear to them which key will do the trick. As of last year, 78% of companies said they used artificial intelligence in at least one function, up from 55% in 2023, according to global management consulting firm McKinsey's State of AI survey, released in March. From these efforts, companies claimed to typically find cost savings of less than 10% and revenue increases of less than 5%. While the measurable financial return is limited, business is nonetheless all-in on AI, according to the 2025 AI Index report released in April by the Stanford Institute for Human-Centered Artificial Intelligence. Last year, private generative AI investment alone hit $33.9 billion globally, up 18.7% from 2023. The numbers reflect a 'productivity paradox," in which massive improvements in AI capabilities haven't led to a corresponding surge in national-level productivity, according to Stanford University economist and professor Erik Brynjolfsson, who worked on the AI Index. While some specific projects have been enormously productive, 'many companies are disappointed with their AI projects." For companies to get the most out of their AI efforts, Brynjolfsson advocates for a task-based analysis, in which a company is broken down into fine-grained tasks or 'atomic units of work" that are evaluated for potential AI assistance. As AI is applied, the results are measured against key performance indicators, or KPIs. He co-founded a startup, Workhelix, that applies those principles. Companies should take care to target an outcome first, and then find the model that helps them achieve it, says Scott Hallworth, chief data and analytics officer and head of digital solutions at HP. A separate report from McKinsey issued in January helps explain why AI adoption is racing ahead of associated productivity gains, according to Lareina Yee, senior partner and director at the McKinsey Global Institute. Only 1% of U.S. companies that have invested in AI report that they have scaled their investment, while 43% report that they are still in the pilot stage. 'One cannot expect significant productivity gains at the pilot level or even at the company unit level. Significant productivity improvements require achieving scale," she said. The critical question then, is how companies can best scale their AI efforts. Ryan Teeples, chief technology officer of 1-800Accountant, agrees that 'breaking work into AI-enabled tasks and aligning them to KPIs not only drives measurable ROI, it also creates a better customer experience by surfacing critical information faster than a human ever could." The privately held company based in New York provides tax, booking and payroll services to 50,000 active clients, with a focus on small businesses. The company isn't a Workhelix customer. Additionally, he says, companies should look beyond individualized AI usage, in which employees use GenAI chatbots or AI-equipped productivity tools to enhance their work. 'True enterprise adoption…involves orchestration and scaling across the organization. Very few organizations have truly reached this level, and even those are only scratching the surface," he said. The use of AI at 1-800Accountant begins with an assessment of whether the technology improves the client experience. If the AI provides customers with answers that are as good, better or faster than a human, it's a good use case, according to Teeples. In the past, the company scheduled hourlong appointments with advisers who answered simple client questions, such as the status of their tax return. Now, the company uses an AI agent connected to curated data sources to address 65% of customer inquiries, with 30% arranging a call with a human. (The remaining 5% drop out of the inquiry process for various reasons.) The company uses Salesforce's Agentforce to handle customer inquiries and its Einstein platform for orchestration across 1-800Accountant's back end. Teeples said the company is saving money on the cost of human advisers. 'The ROI in this case was abundantly clear," he said. Orchestrating AI across the enterprise requires the right infrastructure, especially when it comes to data, according to Gabrielle Tao, senior vice president for data cloud at Salesforce. It is important, she said, to harmonize data, for example, by creating a consistent way to refer to business concepts such as 'orders" and 'transactions," regardless of the underlying data source. AI deployments should target tasks that are both frequent and generalizable, according to Walter Sun, global head of artificial intelligence at SAP. Infrequent, highly specific tasks such as a marketing campaign for a single event might benefit from AI, but applying AI to regularly occurring tasks will achieve a more consistent ROI, he said. Historically, it has taken years for the world to figure out what to do with revolutionary general-purpose technologies including the steam engine and electricity, according to Brynjolfsson. It isn't unusual for general-purpose models to follow a 'J-curve," in which there's a dip in initial productivity, as businesses figure things out, followed by a ramp-up in productivity. He says companies are beginning to turn the corner of the AI J-curve. The transformation may occur faster than in the past, because businesses—under no small amount of pressure from investors—are working to quickly justify the massive amount of capital pouring into AI. Write to Steven Rosenbush at
Indian Express
24-04-2025
- Business
- Indian Express
Top 10 countries by total AI investment (2025): Where does India rank globally?
Driving the next technology revolution, private AI investment globally has consequently grown substantially in the last decade as countries position themselves for the future. Global Private Investment in AI (2013-24): It increased by 44.5% between 2023 and 2024, the first year-over-year growth since 2021. | Source: Stanford AI Index 2025 In a notable mention, the U.S. raised nearly half a trillion dollars in private investment in AI, higher than the rest of the world combined from 2013 to 2024, according to the same report. Further, China also made substantial AI investments totalling $119.3 billion, with the UK following next with $28.2 billion of investment. Alongside them, Canada and Israel made significant contributions, investing $15 billion in AI over the past decade. Stanford AI Index 2025: Top 10 countries by global private AI investment, 2013–24 (sum) There is a wide gap in private investments between the United States and other regions; China witnessed a slight decrease of -1.9%, while Europe has seen a massive increase of +60% since 2023. Other than the top 10, countries like Israel ($15.0 billion), Singapore ($7.3 billion), Sweden ($7.3 billion), Japan ($5.9B), Australia ($4B), Switzerland ($3.9B), and the United Arab Emirates ($3.7B) have attracted significant AI investments over the past decade. Rank Country Total Investment (in USD, Billions) 1 United States 470.9 2 China 119.3 3 United Kingdom 28.2 4 Canada 15.3 5 Israel 15 6 Germany 11.3 7 India 11.1 8 France 9 9 South Korea 7.3 10 Singapore 7.3 Source: Quid, 2024 | Chart: 2025 AI Index report India's Position Explained: India is making impressive progress in the global AI landscape, significantly boosting its startup ecosystem. The country is home to over 240 generative AI startups and is heavily investing in private funding for artificial intelligence (AI). According to a recent Stanford report, India attracted $1.16 billion in private AI investments in 2024; furthermore, from 2013 to 2024, the total amount of private investments in AI in India reached $11.29 billion, Stanford's report highlights.
CairoScene
18-03-2025
- Business
- CairoScene
Saudi Arabia Ranks 14th Globally in AI Development
Saudi Arabia also secured the top spot in the Arab world, according to the 2024 Tortoise Intelligence AI Index. Saudi Arabia has climbed to 14th place globally in the 2024 Tortoise Intelligence AI Index, the highest ranking among Arab nations. Globally, the Kingdom leads in government AI strategy and ranks 7th in AI trade, reflecting its increasing investment and development in artificial intelligence. The AI Index, launched in 2019, evaluates nations based on seven key indicators, including government strategy, operational environment, infrastructure, research, development, competencies, and trade. The United States, China and Singapore continue to lead the rankings, with Saudi Arabia showing the most notable improvement in the region. The UAE follows at 19th globally, securing second place in the Arab world, while Egypt and Qatar round out the top regional performers while placing 52nd and 54th globally, respectively. Saudi Arabia's 2024 ranking marks a significant leap from 31st place last year. The Kingdom has prioritised AI-driven initiatives as part of its broader Vision 2030 strategy, emphasising research, education, and industry partnerships to position itself as a global leader in artificial intelligence.
