AI Didn’t Break Your Org Chart—It Exposed Your Entire Business Model & Outdated Talent Mindset

I was recently having a conversation about industry and talent.  As so frequently happens, it inspired this article.  A little bit ago, I addressed how the world of work is changing rapidly, along with how it is going to affect certain industries.  I want to directly address my thoughts on what is going to happen in the near future around the intersection of human talent and AI.

First I want to address my conjecture on what will happen to organizations that are resistant to change.  While it may be controversial, I believe that AI- in general- will end being the equivalent of  “open source”- i.e. organizations will be building AI internally rather than outsourcing it.  Right now the bigger players are dominating the market and funding- but the reality is, from my perspective- that is short lived.  Organizations are still trying to figure out how to adapt to incredibly rapidly changing realities and how to keep up with the changes.  Organizations are top heavy and structured based on systems- and it will take awhile to figure out just how to leverage AI effectively.

And about that “top heavy” point-one quick tangent- this is a phenomenal time in the market for entrepreneurship.  The reality is new market entrants have a competitive advantage.  Why you ask?  Well here is the simple truth- if you are building from scratch today, with the advantages and resources that come with AI, someone that is “brand new” can build quicker, leaner, and frankly in most cases better.  The new entrant won’t be “weighed down” with top heavy existing systems and overhead costs..and are able to just focus on doing said business innovatively in a way that works for the market today and in the near future.  That is a huge competitive advantage.  

Now that I have addressed that tangent, I want to circle back to my perspective on how organizations will thrive in the “new normal” that is constantly changing.  And my perspective, largely based on what I have seen in the news, is diametrically opposed to what is creating proverbial noise in the market.

Yes, embracing and understanding the organizational and industry impact of AI is imperative but I think most organizations are missing the boat on a fundamental foundational truth- your talent is still your most valuable asset.    But the foundation of how we define, perceive, lead, manage, and develop talent needs a dramatic overhaul- and quickly.

If you are reading this, I ask you to adjust your viewpoint for just a quick minute and observe what is happening from the top of the Empire State building versus from the ground.  There is so much talk about people being replaced with AI and job loss.   Here is the reality- it is a much broader systemic issue that needs to be addressed..and the problem isn’t the talent…that is just a symptom.

Organizations in the US have been built with what I like to call a “patriarchal” mindset- top down, system heavy, with a myopic focus on expertise and hyper productivity.  All of this, systemically, is diametrically opposed to what type of organizations will thrive in this exciting period of rapid change.   Great leadership, in its simplest forms, should be a harmonized balance of optimizing and growing your talent resources and exceeding performance standards- influencing and supporting both people and data-oriented performance.  Organizations’ leadership right now is fundamentally flawed as they are trying to force fit the AI piece into the existing infrastructure instead of leveraging the innovative opportunities that it presents to grow how businesses are actually run.  Organizations are missing the boat- and quickly being left behind because of it.

So what does that really mean needs to happen-and quickly-from my perspective?  It means that some foundational business blocks need to be completely regenerated.

We need to look at talent from a broader perspective.  Merriam-Webster broadly defines talent as a special or creative aptitude or the natural endowments of a person.  And the Society for Human Resource Management defines talent management on their website as “integrates every stage of the employee lifecycle into one strategy that fuels business performance.”  Organizations on the whole in the US are doing neither effectively with AI.  The new workforce talent is made up of people and AI- the way that we design the workforce for the now and in the future dictates that we turn the current ecosystem on its head.  

Job descriptions, for example, are based on the old top heavy patriarchal systems.  The way we lead people within the normal course of daily business is based on the old systems.  How we define team dynamics and collaboration are outdated.  Even the way we view expertise and performance is based on the old systems and mindset.  Of course companies are thinking that they need to cut roles and people out of their organizations and replace them with AI as they haven’t supported or advocated for support of the unfiltered true definition of talent- “natural endowments of people”- they have been force fitting them into the system’s box and driving their “production” performance on those terms.  In essence, they are stifling their talent.

If you use the broader definition of talent resources to include AI, it forces you to think about the workforce a little bit differently.  AI is great at systems.  AI is great at running trains on time.   Humans, on the other hand, are great at creation, innovation, connections, and emotions but they are so busy “doing” based on forced fit outdated standards of “excellence” that they are set up to fail.  If you are an organization that wants to compete in today’s market, you need to change that- immediately.

Organizations that will sustainably thrive today and in the future will completely redesign not only how they are structured but also their mindset of what excellence looks like.  They will put immediate initiatives in place that advocate for, and support, environments where talent resources can thrive.  And that includes:

-Completely overhauling the mindset of how talent is thought about strategically- including both humans and AI in the mix- to redesign how it is optimizing in the normal course of daily business

-Empower human talent with the internal infrastructure, and training resources if needed, that evolve and celebrate their creation, innovation, collaboration, connections, and emotional intelligence.  Optimize what they bring to the table as their unique natural endowments and ensure that leadership, and the systems, set them up for success.  Celebrate, leverage, and optimize talent.

-The way organizations define internal functions needs a complete overhaul too.  Human Resources, Operations, and Information Technology (among other departments) as the nature of their work is increasingly overlapping and seamless integration requires continuous evolution.

-Collaboration and innovation are the fundamental keys to success.   And that is relevant in how we define those two across how talent is managed, the way we measure performance, in how strategic initiatives are vetted, and how daily business is applied.  

I could type for hours about how many things need to fundamentally change-both in mindset and application.  But I will leave you with this thought- and I am sure this one will probably be the most controversial.  Why is it that we, as US organizations, are still looking at managing our business largely the same way with an overlay of how to integrate AI into it?  For example, is it really serving the organizations’ best interest to have stable functional overhead?  Is it time to relook at how we bring teams (yes both AI and human) together to collaborate to get the business completed?  Should the model be the equivalent of just-in-time micro-learning with well paid collaborative teams that bring fantastic and unique expertise to the table?

These are just some of the questions that organizations should be taking a hard look at in order to both leverage optimized talent and to compete in today’s business environment.

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