{"id":65623,"date":"2019-11-27T14:29:28","date_gmt":"2019-11-27T12:29:28","guid":{"rendered":"https:\/\/richardvanhooijdonk.com\/blog\/?p=65623"},"modified":"2021-07-26T14:42:11","modified_gmt":"2021-07-26T12:42:11","slug":"ai-in-management-your-boss-could-soon-be-a-machine","status":"publish","type":"post","link":"https:\/\/blog.richardvanhooijdonk.com\/en\/ai-in-management-your-boss-could-soon-be-a-machine\/","title":{"rendered":"AI in management: your boss could soon be a machine"},"content":{"rendered":"<ul class=\"bold-list\">\n<li>Amazon used AI to determine which workers should be fired<\/li>\n<li>IBM\u2019s AI can identify workers who are planning to leave their jobs<\/li>\n<li>Cogito helps customer service workers be more effective with real-time feedback<\/li>\n<li>The role of AI in management<\/li>\n<\/ul>\n<p>There\u2019s been a lot of talk in recent years about the rise of artificial intelligence technology and its expected impact on the human workforce. Some estimate that <a href=\"https:\/\/blog.richardvanhooijdonk.com\/en\/should-we-be-worried-about-ai-taking-over-the-world-or-are-we-freaking-out-for-no-reason\/\">AI<\/a> could displace hundreds of millions of workers over the next couple of decades, while others believe that AI will create new, better paid jobs. There\u2019s no consensus about the exact number of people that will be affected, but most experts agree that simple, repetitive jobs that are easily automated will be most at risk from AI. The market research firm <em>Tractica<\/em> <a href=\"https:\/\/www.tractica.com\/research\/artificial-intelligence-market-forecasts\/\">estimates<\/a> that global AI software revenue will grow from $9.5 billion in 2018 to $118.6 billion in 2025.<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-66993\" src=\"https:\/\/blog.richardvanhooijdonk.com\/wp-content\/uploads\/sites\/4\/2019\/11\/Global-AI-software-revenue-V2-300x96.png\" alt=\"A horizontal bar graph showing the estimated global AI software revenue in 2018 and its predicted value in 2025.\" width=\"800\" height=\"256\" srcset=\"https:\/\/blog.richardvanhooijdonk.com\/wp-content\/uploads\/2019\/11\/Global-AI-software-revenue-V2-300x96.png 300w, https:\/\/blog.richardvanhooijdonk.com\/wp-content\/uploads\/2019\/11\/Global-AI-software-revenue-V2-768x245.png 768w, https:\/\/blog.richardvanhooijdonk.com\/wp-content\/uploads\/2019\/11\/Global-AI-software-revenue-V2-1024x327.png 1024w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/p>\n<p>Even though it was generally considered that management roles were relatively safe from automation, AI tools are now starting to take over some routine management tasks as well. \u201cWhat managers do mostly is identify potential, build teams, assign tasks, measure performance and provide feedback. Generally speaking, humans aren\u2019t very good at these tasks,\u201d <a href=\"https:\/\/www.mrlcg.com\/latest-media\/management-by-algorithm-will-ai-be-your-new-boss-193332\/\">says<\/a> Tomas Chamorro-Premuzic, a professor of business psychology at University College London. A growing number of companies are now using AI to monitor their workers, provide instant feedback, and offer smart recommendations, allowing human managers to focus on more important tasks.<\/p>\n<h2>Amazon used AI to determine which workers should be fired<\/h2>\n<p>Amazon currently operates more than 75 fulfilment centres across North America that employ more than 125,000 full-time workers. Unfortunately, working conditions in these centres can be quite strenuous, with workers often having to pack hundreds of boxes per hour to meet their quotas. If they\u2019re not fast enough, they risk losing their jobs. In fact, <a href=\"https:\/\/www.theverge.com\/2019\/4\/25\/18516004\/amazon-warehouse-fulfillment-centers-productivity-firing-terminations\">according to<\/a> some documents recently obtained by <em>The Verge<\/em>, the company fired hundreds of employees at a single facility in Baltimore between August 2017 and September 2018 solely for productivity reasons. What\u2019s particularly troubling is that the decision to terminate those workers was apparently made by an AI.<\/p>\n<p>Over the years, Amazon\u2019s fulfilment centres have become increasingly automated, with <a href=\"https:\/\/blog.richardvanhooijdonk.com\/en\/could-the-warehouse-of-the-future-be-entirely-humanless-and-fully-robot-operated\/\">warehouse robots<\/a> taking on a growing number of roles that used to be reserved for humans. And now it seems that Amazon has delegated some management tasks to AI as well. A signed letter from an attorney representing the company, obtained through a Freedom of Information Act request, <a href=\"https:\/\/www.theverge.com\/2019\/4\/25\/18516004\/amazon-warehouse-fulfillment-centers-productivity-firing-terminations\">reveals<\/a> that \u201cAmazon\u2019s system tracks the rates of each individual associate\u2019s productivity and automatically generates any warnings or terminations regarding quality or productivity without input from supervisors.\u201d The system goes so far as to track the amount of time employees spend off task, leading some of them to avoid taking bathroom breaks altogether so they can reach their productivity benchmarks.<\/p>\n<p>Amazon has since denied that the process is completely automated, claiming that human supervisors have the ability to overturn the decision. Furthermore, employees are first offered to take part in a training program and they can lodge an appeal if they feel they\u2019ve been wronged. \u201cSimilar to many companies, we have performance expectations regardless of whether they are corporate or fulfillment center employees,\u201d <a href=\"https:\/\/futurism.com\/amazon-ai-fire-workers\">says<\/a> Amazon\u2019s spokesperson Ashley Robinson in a statement. \u201cWe support people who do not perform to the levels expected of them with dedicated coaching to help them improve and be successful in their career at Amazon. We would never dismiss an employee without first ensuring that they had received our fullest support, including dedicated coaching to help them improve and additional training. Since we\u2019re a company that continues to grow, it\u2019s our business objective to ensure long-term career development opportunities for our employees.\u201d While it\u2019s not clear whether Amazon is still using the system, it\u2019s not that difficult to imagine other companies following suit and allowing an AI to make employment decisions in the future.<\/p>\n<p><iframe title=\"Connect the Dots: Amazon using robots to fire employees?\" width=\"800\" height=\"450\" src=\"https:\/\/www.youtube.com\/embed\/lazpAsqFKpY?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe><\/p>\n<h2>IBM\u2019s AI can identify workers who are planning to leave their jobs<\/h2>\n<p>HR departments and corporate managers aren\u2019t particularly effective at identifying their employees\u2019 skills and keeping them on a clear career path. Thankfully, AI can offer a helping hand here as well. IBM HR recently <a href=\"https:\/\/www.cnbc.com\/2019\/04\/03\/ibm-ai-can-predict-with-95-percent-accuracy-which-employees-will-quit.html\">developed<\/a> a predictive attrition program that uses artificial intelligence to predict with 95 per cent accuracy which workers are about to quit their jobs and suggest actions managers should take to engage them. A part of a larger suite of IBM products designed to overhaul the traditional human resources model, the AI retention tool has saved the company almost $300 million in retention costs so far. It\u2019s also enabled the tech giant to reduce the size of its global human resources department by 30 per cent since it was first introduced, leaving the remaining employees better paid and allowing them to focus on higher-value work. IBM\u2019s AI can analyse multiple data points, such as the tasks employees have completed, the educational courses they\u2019ve taken, and the rankings they\u2019ve earned to determine where their strengths lie. This allows HR managers to gain a better understanding of an employee\u2019s skill set and guide them to future opportunities they may not have been able to discover using traditional methods like manager surveys, which tend to be overly subjective and not very accurate.<\/p>\n<p>Traditional human resources departments typically rely on a self-service model, in which employees have to act as their own career managers. However, that\u2019s not the case at IBM, where AI is also used to provide career feedback to employees. The company uses an AI virtual assistant called MYCA (My Career Advisor) that helps employees identify which skills they need to improve and suggests programs that will help them move their career forward. At the same time, a service called Blue Match presents employees with new job openings that match their current skill level. According to IBM\u2019s CEO, Ginni Rometty, around 27 per cent of IBM workers who got a new job or promotion in 2018 used Blue Match to do so. \u201cAI will change all jobs once it is in the workflow, and that is the most meaningful kind of AI. Yes, some jobs will be replaced, but that is a red herring,\u201d <a href=\"https:\/\/www.cnbc.com\/2019\/04\/03\/ibm-ai-can-predict-with-95-percent-accuracy-which-employees-will-quit.html\">says<\/a> Rometty. \u201cIt is about getting people to work at the intersection of this.\u201d What that means is that AI shouldn\u2019t be viewed as something that will replace HR managers altogether, but as a tool that will help them be more effective at their job by recognising the true potential of their employees.<\/p>\n<h2>Cogito helps customer service workers be more effective with real-time feedback<\/h2>\n<p>The Boston-based AI company Cogito <a href=\"https:\/\/time.com\/5610094\/cogito-ai-artificial-intelligence\/\">developed<\/a> a program designed to help customer service agents improve their performance by providing them with real-time feedback as they talk to a customer over the phone. The software uses artificial intelligence to analyse hundreds of factors in customer service conversations, such as the tone of voice, pitch, and word frequency, and displays a notification in the bottom-right corner of the agent\u2019s computer screen if it detects something wrong. \u201cWe can infer from the way people are speaking with each other whether things are going well or not,\u201d <a href=\"https:\/\/www.nytimes.com\/2019\/06\/23\/technology\/artificial-intelligence-ai-workplace.html\">explains<\/a> Joshua Feast, Cogito\u2019s chief executive. For example, if it detects that the agent is speaking too fast or too slow, the software informs them that they need to reduce or increase their speaking pace. If the agent sounds bored or sleepy, it warns them to be more energetic. If it detects frustration in the caller\u2019s voice, it instructs the agent to show more empathy and try to relate to them. When the call ends, all of the notifications are added to a statistics dashboard where they can be later inspected by the agent\u2019s supervisor.<\/p>\n<p>More than three dozen call centres across the United States, including those belonging to healthcare giants Humana and MetLife, have already implemented Cogito. According to MetLife, since the software was first rolled out in its call centres, first call resolution metrics have gone up by 3.5 per cent, while customer satisfaction increased by 13 per cent. The customer service agents themselves don\u2019t seem opposed to the software, either. While the idea of having someone monitoring your calls sounds rather intrusive, most agents agree that Cogito has helped them be better at their jobs and have more human interactions with customers. However, not everyone agrees with this assessment. \u201cWhat [Cogito] appears to do is to allow intensive surveillance of workers and a kind of a priori justification for potentially firing or disciplining workers based on the assessment of a smart machine that neither the worker nor the manager is able to contest or validate,\u201d <a href=\"https:\/\/time.com\/5610094\/cogito-ai-artificial-intelligence\/\">says<\/a> Meredith Whittaker, a distinguished research scientist at New York University and co-director of the AI Now Institute. Even though MetLife managers claim that Cogito performance data has no impact on employee reviews, it wouldn\u2019t take much for that to change sometime in the future, leaving workers\u2019 futures in the hands of a machine.<\/p>\n<h2>The role of AI in management<\/h2>\n<p>Artificial intelligence has had a major impact on today\u2019s workplace, taking over numerous jobs that used to be reserved solely for humans. While management roles initially seemed to be immune to automation, that\u2019s started to change in recent years, with companies increasingly delegating certain management tasks to AI solutions, ranging from monitoring workers and providing feedback on their performance to making decisions on which workers should be terminated. When used properly, AI can help managers be better at their jobs by allowing them to focus on more important tasks. However, there are certain risks involved. For example, we still can\u2019t tell exactly how an AI comes to its decision, which is extremely important when the hiring and firing of employees is involved. There\u2019s also the danger that AI algorithms could reflect the biases of their creators. While it remains to be seen whether AI will ever be able to replace human managers altogether, it\u2019s not out of the question that we\u2019ll all be answering to an AI boss sometime in the future.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Amazon used AI to determine which workers should be fired IBM\u2019s AI can identify workers who are planning to leave their jobs Cogito helps customer service workers be more effective with real-time feedback The role of AI in management There\u2019s been a lot of talk in recent years about the rise of artificial intelligence technology [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":65631,"parent":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","footnotes":""},"categories":[2876],"tags":[4600,4274,5099],"article-type":[],"trends":[5485],"class_list":["post-65623","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-management-en","tag-amazon-en-2","tag-automation","tag-warehouse-robots","trends-artificial-intelligence-en"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>AI in management: your boss could soon be a machine - Richard van Hooijdonk Blog<\/title>\n<meta name=\"description\" content=\"From AI systems that decide who should be fired to software that helps customer service agents be more 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