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Why the people and organizational viewpoint is key to realize AI value

AI is changing the workplace by streamlining tasks and sparking innovation, but only if your people adopt it.


In brief
  • AI usage in Nordic workplaces has surged from 12% to 65% in one year and AI Agents are booming at a much faster pace than previously expected.
  • Despite the increased popularity, companies find it difficult to transition and extract business value from their AI investments.
  • Building a workforce that can develop and use AI tools, and extensively driving adoption is essential for value realization.

The use of AI in the workplace has increased significantly over the past year, with many companies exploring the implementation of GenAI solutions and AI Agents in their operations. Today, 65% of employees in the Nordics use the technology in some form at work, a marked increase from last year's figure of 12%, according to the EY Work Reimagined Survey 2024. We see that some companies are approaching AI more extensively through AI transformations where they drastically and methodically want to change how the company operates, while others make individual AI investments on a smaller scale. Many are starting on their agentic AI journey, all in search of the right path toward the promises of increased productivity and profitability. It can be said that AI has gone from theory to practice over the past two years. 

Despite the increased popularity, companies find it difficult to transition and extract business value from their AI investments. A recurring reason is that organizations do not focus enough on building the workforce that enables the value realization from AI use cases. While important areas such as AI strategy, use cases, AI risks, roadmap planning and POC projects are highly prioritized, many organizations come out of their planning process without a plan for how to supply the organization with the capabilities needed to roll out, use, and realize value from AI tools. Therefore, it is essential organizations focus on two main perspectives:

Create a workforce that can develop, utilize and realize the value from AI tools:

AI is an area that has grown rapidly and is by many companies considered one of their highest priorities to continue being relevant and secure market position. Engineers, economists, purchasers and HR, among others, are all expected to contribute with AI competence from their respective areas to deliver on the strategies and roadmaps that organizations have developed. The teams carrying out the AI projects need to possess the new competence required to build, buy and implement the tools. The required skills and competencies are scarce, as they did not exist in the same capacity three to four years ago. With the EU AI Act coming into powerthis year, upskilling employees in AI is now not only an add on, but a requirement for organizations that want to leverage AI tools. It is important that organizations ensure they have enough employees with the right capabilities.


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    And those who receive the tools? We also need a broader workforce that can receive the tools, and use them effectively. The value from AI comes from employees becoming more productive in their work; otherwise, licenses for tools and models are just a cost. Finding the right measurements for analyzing the return on investment, planning for how much more productive our teams will become with the tools, and what we will do with the leftover time, are key factors in how the value of AI is realized. Without it, we leave value realization to chance. Should we adjust the size of the organization? How much, if so? Which roles should be adjusted? Should we use the time saved to do new things?

     

    It is critical that organizations include these perspectives at an early stage in the AI transformation to avoid realizing after the go-live date that it only became an additional cost for the organization, and there is no better time to start than now.

     

    Extensive focus on driving adoption and change management:

     

    We all know how important change management is, and it is especially important when it comes to AI as the changes are often larger. AI will affect how we perform our work, but it also changes how we fundamentally interact with technological platforms, e.g., through the language used to interact with GenAI tools such as prompting.

     

    Employers see AI as a groundbreaking solution for productivity and flexibility – and it is, but only if the technology is actually used. For AI to truly create value, we must build both confidence and practical understanding among those who use the technology daily. It is very important to approach driving adoption and AI change management from an end-to-end perspective, not just when the tools are going live. Early on, it needs to be defined what vision the company is working toward with AI, which business cases we are working toward, and how those correlate to the strategic objectives of senior business stakeholders, showing employees that the change is real, engaging leaders to drive the change, setting up clusters of engaged users who can help others adopt the new technology, and promoting experimentation.

     

    If AI is to become an integrated part of the company's way of working and culture, it needs to become just that, an integrated part of how leaders lead, how employees work, and how groups collaborate. This requires an extensive focus on driving adoption, and according to our experience, it does not often occur naturally.

     

    The use of AI in the workplace has increased significantly over the past years and will continue to become a larger part of our lives. Many companies find it difficult to extract value from their AI investments, often due to a lack of focus on building the workforce that effectively utilizes AI. They risk becoming obsolete if they do not start now. To realize the value of AI tools, it is important for organizations to focus on two main perspectives: creating a workforce that can develop and utilize AI tools, and driving adoption and change management from an end-to-end perspective – from before a decision to go ahead with a specific use case, to after the roll-out is complete – tracking benefits and ensuring business value.


    Summary 

    The surge in AI adoption marks a pivotal shift in workplace operations, with a notable increase in Nordic employee usage. Despite this growth, extracting tangible value from AI remains a challenge, necessitating a skilled workforce and robust change management. Organizations must prioritize these areas to fully leverage AI's potential, ensuring productivity gains and a sustained competitive edge. As we look ahead, the integration of AI will continue to shape the future of work, making now the time for businesses to act and adapt.

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