In a world buzzing with excitement about artificial intelligence, it’s easy to get swept up in the technological hype. Many leaders are scrambling to implement AI solutions, fearing they’ll fall behind competitors who embrace these tools first.

However, recent studies suggest that as the world of business changes and AI and technology become a bigger part of everyone’s workday, the need to focus on high-payoff activities becomes more and more important. Although AI will replace a lot of traditional education and training, the need for true inside-out development will skyrocket! Some key findings: According to McKinsey, “The answer lies not in a lack of external ability but in insufficient internal capacity.

This paradox only deepens with the rise of Artificial Intelligence. AI doesn’t solve it; it exposes it. As machines master the science of management, leaders must now master the art of being human.” And according to Financial Management, “A recent survey of 31,000 workers around the world found that 80% said they lack the time or energy to do their work, yet 53% of leaders said that productivity needs to increase.” The Josh Bersin Company found, “Just 25% of companies believe their leadership development is delivering high value to the company.” Gallup recently discovered, “Less than half of employees (45%) participated in training or education to build skills for their current job.

Organisations could realise an 18% increase in profit and 14% increase in productivity by doubling the proportion of employees who feel they have opportunities at work to learn and grow.” According to Harvard, “While gen AI collaboration boosts immediate task performance, it can undermine workers’ intrinsic motivation and increase feelings of boredom.

Over time, the lack of intrinsic motivation can lead to disengagement, lower job satisfaction, and even burnout. While gen AI can help organisations achieve short term performance gains, its overuse may have long-term consequences for workers’ psychological well-being.” And lastly, a recent article from MIT Sloan Management Review suggests: “AI does not change the fundamentals of what makes for sustainable competitive advantage.

The value that AI unlocks will be unlocked for all. Far from being a source of differentiation, AI will be a source of homogenisation. There is no question that artificial intelligence will transform the competitive business landscape. AI will streamline business processes, increase worker productivity, redefine premium skill sets, and unlock the potential of data. It is tempting for a company to believe that it will somehow benefit from AI while others will not, but history teaches a different lesson:

Every serious technical advance ultimately becomes equally accessible to every company — these technologies are no longer competitive advantages for any organisation. Therefore, the key to unlocking sustained advantage is the same as it always has been. Companies must cultivate creativity, drive, and passion. Human creativity will be the greatest source of sustainable advantage that companies can rely on in an uncertain world, and companies must not lose sight of the individuals and relationships that drive that creativity. Investing in untapped individual potential, promoting training and development, and rewarding innovation will result in human capital that can sustain companies no matter how the technological landscape morphs.”

This aligns perfectly with what we at LMI have long advocated and reinforces what forward-thinking leaders have always known: while technologies come and go, the fundamental principles of sustainable business success remain constant. The human capacity for creativity, innovation, and relationship-building cannot be replicated by algorithms.

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(Top image:  Jason Goodman on Unsplash)