Published on the 13/06/2023 | Written by Heather Wright

BCG’s 10-20-70 rule sets priorities…

Optimism about generative AI’s impact at work is growing as more people become familiar with the technology, but there’s a big divide between senior leaders and frontline workers, with companies being called on to increase upskilling in order to avoid leaving frontline teams behind.

A Boston Consulting Group survey of 12,800 employees across 18 countries, including 1,195 in Australia and New Zealand, found 62 percent of leaders were optimistic about the technology, with 42 percent of frontline employees sharing that sentiment. Across the board optimism was at 52 percent – a 17 point jump on 2018 figures (when generative AI was still in the lab), with concern recording the steepest decline from five years ago, down from 40 percent to 30 percent.

“Leaders should make sure that they do not get ahead of their people and leave their frontline behind.”

Optimism was one of the top sentiments about AI’s impact, behind curiosity – something 61 percent of respondents professed to. Just 14 percent listed indifference.

But while there is optimism, there’s also deep-seated concerns that companies aren’t committing enough to upskilling, particularly of frontline employees, or to taking adequate measures to ensure responsible use of AI responsibly.

The report, AI at Work: What People Are Saying, clearly shows the importance of exposure to technology in order to allay concerns, with optimism growing with familiarity and respondents who use the technology regularly far more bullish than those who have never tried it. Sixty-two percent of regular users of generative AI were optimistic about it. Among non-users the figure drops to 36 percent. That helps explain the discrepancy between leaders and frontline employees. While 46 percent of respondents said they have experimented with the technology, and 26 percent are using it several times a week, the numbers are heavily skewed to leaders: 80 percent of leaders say that they use generative AI tools regularly, as do 46 percent of managers. For frontline workers that figure plunges to just 20 percent.

And training? While 44 percent of leaders say they have received training to sharpen their skills and stay relevant, just 14 percent of frontline employees have had that same opportunities – despite 86 percent of those frontline workers saying they need training to sharpen their skills to prepare for the new era of AI at work.

Vinciane Beauchene, a BCG managing director, partner and co-author of the research, says companies that capture the most value from AI follow the 10-20-79 rule, with 10 percent of their AI effort going into designing algorithms, 20 percent to building the underlying technologies and 70 percent to supporting people and adapting business processes.

“Upskilling is essential and must be done continuously,” Beauchene says. And she adds, it should go beyond merely learning to use the technology and allow employees to adapt in their role as activities and skill requirements evolve.

“Comfort level plays an important role, as using generative AI tools more regularly boosts positive sentiments about AI at work throughout the organisation,” BCG says.

That comfort level isn’t just about increase employees’ enthusiasm and readiness to embrace the technology either, with BCG noting that exposure to the technology also enables people to more clearly recognise the risks and limitations of the technology.

While employees may be more optimistic than ever before about the use of generative AI, they’re not naïve. More than a third of respondents (36 percent) believe their job is likely to disappear because of AI.

Frontline workers were also far less confident their organisation was using AI responsibly, with just 29 percent believing adequate measures had been implemented to ensure responsible use. Leaders, however, were much more confident at 68 percent.

The report also shows broad global support for AI regulations, with 79 percent of Australia and New Zealand respondents also keen for regulation.

Despite the concerns, 71 percent of respondents believe the rewards of generative AI outweigh the risks, particularly in saving them time and promoting innovation in their roles.

BCG says companies need to address the gaps and make sure leaders aren’t getting ahead of their people and leaving the frontline behind.

“The two best ways to make progress throughout the organisation are to encourage frontline employees to use AI responsibly and to train them in the skills that the new era will require,” BCG says.

“Employees are prepared to accept AI in the workplace, but only if they are confident that their employer is committed to doing the right thing. Companies must move quickly to build their employees’ trust and equip them with the necessary skills.”

The management consulting company offered up three recommendations for organisations:

Ensure there are spaces for responsible experimentation. The more regularly employees use AI and generative AI the more clearly they recognise the benefits, as well as the limitations and risk.

Invest in regular upskilling. Given how swiftly technology evolves upskilling must be done continuously and companies must invest in training to help employees adapt to the ways AI will change their jobs.

Prioritise building a responsible AI program. Employees want reassurance that their organisations are approaching AI and generative AI ethically, and leaders want to be in a position to help frame emerging AI regulations.