News, Trends, and Insights for IT & Managed Services Providers
News, Trends, and Insights for IT & Managed Services Providers
Business of Tech | Artificial Intelligence: A Leveler or Divider in White Collar Work?

Artificial intelligence (AI) primarily benefits high-performing ones while providing little aid to low-performing ones, according to a series of studies. AI was observed to narrow the gap between high and low performers, equalizing white-collar work. Studies show that AI tools impact workers differently depending on their skill level. In creative writing and office memos, AI helped low performers improve but had little effect on those already skilled. In coding, less experienced engineers benefited more from AI assistance. In management consulting, AI boosted the scores of low performers more than high performers. In law school, AI helped lower-ranking students but hurt top performers. In call center work, AI improved productivity for novice workers but had little benefit for experienced workers and even hindered top performers in some cases.

Microsoft has announced a new agreement with the AFL-CIO, the largest federation of unions in the US, to address concerns about the impact of artificial intelligence (AI) on American workers and facilitate unionization at Microsoft. The agreement includes a “neutrality framework” that supports employees’ right to form or join unions and negotiate collective bargaining agreements. AI has become a contentious issue in labor negotiations, and Microsoft’s partnership with the AFL-CIO aims to separate the company from its industry rivals on this issue. The agreement was announced at an event in Washington, D.C., attended by labor leaders and Microsoft executives.

According to a report by the Government Accountability Office, federal agencies in the United States have over 1,200 planned or operational uses of artificial intelligence (AI). While some agencies have invested significantly in AI, others have struggled to meet federal requirements. The report emphasizes the need for responsible AI management to minimize risks and achieve intended outcomes. The survey of 23 non-defense agencies revealed 1,241 current and planned AI use cases, with NASA and the Department of Commerce leading in the number of use cases. However, the report also highlighted challenges in defining AI and incomplete data submissions by agencies. Recommendations were made to various agencies to implement AI requirements and update AI use case inventories fully.

According to a survey by Intel, only 10 percent of organizations have adopted generative AI technology in production environments despite a surge in awareness. Difficulties with basic infrastructure, compliance and privacy, reliability, high cost of implementation, and a lack of technical skills were cited as barriers. However, those who have invested in generative AI have seen benefits such as improved customer experiences, increased efficiency, and enhanced product capabilities.

Despite the low cost and barrier to entry, fewer than one in five Australian SMEs are utilizing AI. Australian small and midsize businesses need help to embrace it, with only 19% presently using AI and another 21% planning to adopt it in the near future. This leaves 60% unsure or unaware of AI as a business opportunity.

Why do we care?

We should ponder the haves and have-nots of technology – and, with my focus on SMB, ensure that smaller customers are not left behind while large companies and government agencies surge ahead with gains.   This gap between awareness and implementation could lead to a future surge in adoption as barriers are addressed, although I would prefer customers to see gains now.  

60% of SMBs are either unsure or unaware of AI, which indicates a significant opportunity for growth and education in this sector. Addressing these knowledge gaps is the IT services opportunity.  

And what an interesting partnership – Microsoft is taking a proactive approach to addressing labor concerns in the era of AI. By supporting unionization and collective bargaining, Microsoft acknowledges AI’s transformative impact on the workforce.   And they’re investing in it.   

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