Transforming Industries: The Impact of AI on Automation and Workforce Dynamics
- 1. 1 3.1. Current State of Research 3.1.1 Automation of Repetitive Tasks through AI Overview of AI Technologies Artificial Intelligence (AI) is among the major innovations employed to transform repetitive tasks across all industries. Such technologies include machine learning (ML), natural language processing (NLP), and computer vision, where the first assists systems in learning from data, the second helps them to understand written and spoken language, and the third helps them to interpret images and videos (Tyagi et al., 2020). Different from RPA which executes specifically defined business processes with the use of pre-coded scripts, AI relies on complex algorithms to reason and make choices, learn about occurrences, and transform with new knowledge, making AI create better and more versatile automation (Jha et al., 2021). Business domains including manufacturing, healthcare, finance and customer services have widely incorporated AI solutions across their business processes. AI applied in manufacturing includes elements of predictive maintenance through which data collected from the sensors mounted in the machines is used to predict failure and schedule for maintenance before it leads to downtime or complete failure of the equipment (Lee, 2020). In healthcare, AI algorithms can be employed in the computation of medical images to ease the diagnosis of illnesses by radiologists (Lambin et al., 2017). Banks have been incorporating AI in an attempt to reduce the need for human involvement in the detection of fraudulent actions and transactions, with machines being able to learn from previous data to detect unusual patterns in real time (Patel et al., 2020). In customer service, for instance, a large number of customers are served by AI-based chatbots with basic questions and requests being addressed automatically, which helps to keep human operators available to address more complicated questions (Shankar, 2018). Relevant Studies Several published works looked into the possibility of AI to automate rote tasks, improving the changes it brings to the participants’ roles and work processes. In another study, Tschang & Almirall (2021) identified the role of AI across industries and discovered that deploying AI in different processes enhanced efficiency by often coming with a shift in duties expected of an employee to more demanding functional roles. Academic case- and survey studies among employees in different industries referred to in their methodology showed that these new roles reported higher levels of job satisfaction and productivity.
- 2. 2 Usman et al. (2024) similarly examined the economic and organizational tools of AI integration. The data collected from questionnaires and two focus groups, which were collected with employees in different organisations, suggested that AI automation caused job deprivation in some occupations, but at the same time, it also resulted in upskilling and reskilling possibilities for the workforce. The insights highlighted the need to cultivate learning and flexibility within the workforce to control the productivity impacts of AI-driven automation. Case Study 1: AI in Retail Banking at JPMorgan Chase Initial Situation: JPMorgan Chase & Co, a leading bank in the country, informed that the firm was struggling to manually process loan application forms. It was a fairly long and manual process which was often incomplete and had many errors leading to delays and complicated returns processes that were not very customer-friendly (The AI Revolution for Payments & Tech | J.P. Morgan, 2024). Approach: To tackle these issues, JPMorgan Chase adopted an AI-based system, COIN (Contract Intelligence), to automate the work on loan documents and documents. Automatic credit approval is the key function of the system which is based on machine learning to analyse the data from applications and make decisions regarding credit risks (AI In Finance - Superior Data Science, 2024). Methodology: COIN’s training data was the large volumes of past loan application data from which the system learned to identify factors and trends associated with the risk of default. This training prepared the system to evaluate new loan applications as it included specifics of routine decisions-one click (AI in Finance - Superior Data Science, 2024). Results: This reform was instrumental in significantly enhancing the overall performance of JPMorgan Chase across its loan business division. The system helped to save over 360,000 hours of the personnel’s working time for processing and preparing loans every year. In addition, Automation results in a decrease of errors that are usually caused by manual handling and therefore, increased satisfaction among the customers. Staff was moved from simple paper-pushing and first-round overrides to review and entry of applications and converting their focus to be more tailored to high-touch customer service calls and filtering for application exceptions (AI in Finance - Superior Data Science, 2024). Case Study 2: AI in Diagnostic Imaging at Massachusetts General Hospital Initial Situation: This is what happened to the Massachusetts General Hospital – one of the best medical centres in the United States as it addressed the increasing needs of the population for diagnostic imaging services. The load of medical imaging tasks such as review and diagnosis from x-rays, CT, and MRI was a heavy load signifying the workload on
- 3. 3 radiologists. The early discharge coupled with inadequate staffing levels led to degenerating factors such as delayed care and upgraded pressure on the personnel and staff (Massat, 2018). Approach: To improve the efficiency and accuracy of the diagnostics at Massachusetts General Hospital, they introduced an AI-based diagnostic support tool for reading elaborate studies in radiology. The system, designed with the help of the major AI technology suppliers, is based on the principle of deep learning and is aimed at identifying and marking potential irregularities in the images on the screens (Massat, 2018). Methodology: It was trained with a set of subsets of marked images that are known to have covered almost all the possible medical conditions. It also enabled the system to recognize finer details as to which patterns were characteristic of different diseases and abnormalities. In practice, it is used for giving initial diagnostic impressions for imaging scans to be validated by human radiologists (Ahn et al., 2022). Results: The use of AI diagnostics in Massachusetts General Hospital also caused a significant decrease in the time that radiologists spent on analyzing images that were routine to them, 30%. This led to the sparing of more time for uncomplicated situations and other time- consuming tussles that involved direct patient care, such as consultations and prescribing of treatment plans. It also seemed to enhance diagnostic accuracy, including the identification of diseases that are usually overlooked during the manual inspection of anatomical models (Ahn et al., 2022). 3.1.2 Effects of AI on the World of Work Impact on Job Roles and Responsibilities Modern technological advancements such as the integration of Artificial intelligence in the working environment have shifted the dynamics of most organizations' job profiles like never before. In its drive to cover various areas and offer comprehensive services, employees face workload challenges as AI assumes the roles of repetitive functions (Paudel, 2024). For instance, in finance and healthcare business fields, employees no longer perform simple tasks as the typical utilization of the AI system allows, for instance, checking transactions for fraudulent activities and monitoring, as well as patient care (bin Abdullah & Iqbal, 2022). A case study by Davenport and Ronanki (2018) shows that the implementation of AI practice at the workplace does not solely displace work opportunities but instead extends and strengthens the competency of people at the workplace. They also assert that AI frees up
- 4. 4 employee creativity since they most often spend much of their working time worrying about menial aspects of any work they are undertaking. These changes require a new type of mindset and a range of diverse competencies from the employees, thus transforming their everyday work processes (Davenport & Ronanki, 2018). Skill Requirements and Job Descriptions AI technologies result in changes to the tasks that are performed and the skill demand and hence require redesign of work. Employment has evolved in a way that when calls for repetitive tasks are performed frequently, complex digital expertise, problem-solving, and specific emotions are sought. This shift in skill demands is important to allow employees to actively and efficiently interface with AI systems and to deal with further complicated tasks that arise from these technologies (Schlegel & Kraus, 2023). One of the latest research is the goal-aspiration studies conducted by Bessen et al. (2019) focusing on the shifts of job skills in the manufacturing industry as a result of AI integration. The authors discovered that while using AI technology in a workplace meant that workers had to learn about the technology infrastructure and systems themselves and integration of AI in a workplace, further, they had to develop interpersonal skills concerning cooperation and conflict resolution caused by the use of artificial intelligence in the workplace. The result of this study can help support the ongoing discussion on the ongoing training and education of employees in an age of advanced intelligent technologies (Bessen et al., 2019). Also, the nature of skills has changed in the organization, and it has become increasingly necessary to add AI and machine learning competencies to job descriptions. For instance, it has become the norm for job advertisements to include in their list of requirement skills such as AI literacy, data interpretational skills, and strategic thinking among others demonstrating how integrated the use of AI has become in defining employees’ responsibilities and businesses (Dwivedi et al., 2021). Employee Productivity and Satisfaction Applying Advanced Robotics for work process automation to improve efficiency in employee work Output while incorporating the use of Artificial Intelligence in the betterment of productivity. There are several studies which have shown that AI has a positive impact on the workplace and includes the effectiveness of work performed, employees’ satisfaction and morale. In a study by Wilson and Daugherty (2018) that sought to determine the impacts of AI in a company, they observed that companies that incorporated AI technology recorded some level of increase in productivity. This rise was blamed on the fact that AI binds less of the employee's
- 5. 5 time to trivial and routine tasks, hence enabling them to take on more fulfilling and challenging work. In other aspects, the use of artificial intelligence in the current world has been proven to increase the creativity and innovativeness of workers as they are relieved of usual tasks; in this case, the productivity level is therefore boosted (Wilson & Daugherty, 2018). Moreover, the impact of AI on job satisfaction is complex and multifaceted. Investigating the impact of AI on job satisfaction by reviewing the studies, Singh & Tarkar (2020) found that higher levels of satisfaction were obtained when the employees used AI to enhance their work instead of the technology replacing them. In this perception, job pressure is eased, morale is given a boost and the employee is given more chances to be involved in activities that involve human skill, judgment and understanding through handling technologies (Singh & Tarkar, 2020). Nevertheless, the introduction of AI can also cause issues such as rising employee concerns about losing jobs and the call for technical skills development which hampers organization morale. This is why communication and training should not cease after an employee has been hired; the continuous process helps in handling these issues. Those institutions that engage in investing in higher education for their employees and circumscribing the idea of AI to that of a tool that assists human ability as opposed to replacing human beings, tend to keep higher standards of employee motivation and productivity (Jain, 2021). 3.1.3 Opportunities and Risks of the Use of AI Applying AI technologies to the processes within the organization, which allows automating routine tasks, affects the activities of employees and their tasks significantly. In this section, we look at the specific effects and advantages or disadvantages brought by HROEs, finally with an emphasis on particular types of roles in employee organizations, illustrating it with the help of case studies of particular industry sectors. Opportunities of AI Another advantage of AI applications in terms of automation of processes is mentioned above, namely, optimization of efficiency and cost-saving (Javaid, 2021). For instance at Amazon robotic technology helps in sortation and packing using a robotic system in their fulfillment centres. Such automation has enhanced methods of speedy operations, accurate outcomes minimization of casual errors hence enhanced productivity (Ferreira & Reis, 2023). Tschang & Almirall (2021) demonstrate that it is possible and effective to implement change, such as introducing AI to perform micro-tasks, to minimize labour expense since the work done by
- 6. 6 employees is replaced and refocused to cover tasks like inventory and quality assurance (Tschang & Almirall, 2021). In addition, AI intervenes in decision-making to enhance the best decisions for an entity. In the financial services industry, one firm that applied AI is JPMorgan Chase through a programme known as COIN that was used in the analysis of legal contracts. Boilerplate contracting is where this AI system spends tens of thousands of lawyers’ hours each year in seconds, work that used to require 360,000 hours a year. This way employees avoid being tied up with repetitive processes and are rather able to add more value to their work by focusing on analysis and strategy tailored for their clients while improving the quality and satisfaction levels (AI in Finance - Superior Data Science, 2024). Risks of AI However, the introduction of AI also holds several risks in terms of its utilization. The first and foremost loss is the loss of jobs: in this case. For instance, AI and robotics have been largely incorporated in line productions and manufacturing in the automobile industry specifically by the company, General Motors. This has certainly made things more efficient, but there remain questions about how decision-makers are eschewing standardized line workers, and how workers’ jobs could be threatened further when they don’t adapt quickly enough to skills requiring higher technical training (Yin et al., 2018). Ethical and privacy-related issues are the other noteworthy risks that are effective in discolouring investor sentiment. There are consistently voicing concerns over the choices made by machines, especially in health care solutions like IBM systems Watson in the diagnosis of diseases and the privacy of the patient’s data that the AI systems grunt. These concerns directly point to the need to establish clear ethical standards and are also a reminder of the significance of maintaining high levels of cybersecurity to safeguard such data (Aggarwal & Madhukar, 2017). Job displacement is still one of the many dangers involved in the use of AI to automate processes especially repetitive ones. A key prediction by one of the world’s top research institutes, McKinsey Global Institute, Ellingrud et al. (2023) ascertains that it is possible that by the year 2030, artificial intelligence and automation could take over up to 30% of human work in certain industries especially those industries involving repetitive and predictable manual tasks. As an example, one can note that in the auto-producing industry, the application of AI promoted the usage of robotic equipment instead of human labour. This has raised worry about the future of work, especially in industries that require a lot of mechanic force.
- 7. 7 The statistic trend touches on a revolution process through which, while some positions become obsolete, new ones emerge within the scope of overseeing AI, as well as maintaining it. However, this transition creates some difficulties such as re-training the employed workers or re-orientation of the educational systems to better match the needs of the new industry and economy. Thus, the dynamic translates the employment theme from the conventional manufacturing industry to the one that involves oversight and interaction with AI solutions. 3.1.4 Microsoft Copilot and Similar AI Tools Detailed Examination of Microsoft Copilot Overview of Microsoft Copilot's Functionalities: Microsoft Copilot is an exciting service that could be best described as an AI booster for Microsoft 365. It also includes as a part of a more extensive campaign to introduce artificial intelligence in daily tasks, Copilot has features like real-time analysis of data, generating content on its own, and automated management of tasks. In particular, it helps users compose emails, translate text, suggest editing an extended text, provide analytics on data, and more, right in Office’s applications, including Word, Excel, Outlook, and others. These features are designed to minimize the total amount of sheer time worked by the employees due to confining such manipulative operations as typing in, scrolling through, or retrieving lists of e-mails, organizational directories, and documents which employees have to work through to get to the more intricate, complex and creative aspects of their work assignments, responsibilities and projects (Chen, 2024). Studies Assessing Its Effectiveness and Impact on Work Processes: In a detailed study Filipsson and Filipsson (2024), focused on the utilization of AI tools available in the corporate segment, such as Microsoft Copilot. The study indicated that Copilot had a positive impact on time-saving where preparation of documents and data analysis by up to 50%. Employees said that about speed the success of getting drafts and presentations fast enables them to focus more on strategic and client engagement hence increasing work throughput and satisfaction (Filipsson and Filipsson, 2024). Filipsson and Filipsson (2024) on the sustained consequences of copilot on employee performance and incorporation. The research findings showed that, at the end of the six months’ integration, Copilot gave the department better analysis results with an additional commitment to enhancements of 40% in experiences for project success completion and a cut on the running costs linked with document handling by 30%. Notably, the work brought
- 8. 8 into focus the fact that with the adoption of Copilot, the roles of employees narrowed down to allow artificial intelligence to solve basic routine tasks and interpret results generated by the artificial intelligence, which in turn creates the demand for critical thinking and managing artificial intelligence skills (Filipsson and Filipsson, 2024). Comparison with Other AI Tools When assessing the overall degree of impact of an AI tool on the employment status of employee and their work, it is advisable to compare Microsoft Copilot with other key competitors in the market. These tools have been chosen based on their capacity to support the automation of repetitive work across industries and consequently change the role of workers. 1. Salesforce Einstein: Einstein – AI layer resides within Salesforce Cloud and enables different functions across the org, such as automatic data input and predict sales movements, as well as help in customer support. Parmar (2023) has highlighted through a study that Einstein has enhanced the sales forecast accuracy by 38% for users, which factors enhance the efforts of sales personnel to attend to more clients’ needs rather than bills and policies (Parmar, 2023). 2. IBM Watson: It is clear to alleviate natural language and learn from interactions, IBM Watson offers AI solutions to customer service and healthcare industries. Gomes et al. (2016) found that, based on data by Watson, nursing time spent on capturing patient data has taken up to 45% shifting the role of the nurses towards more patient-oriented care (Gomes et al., 2016). 3. Google Cloud AI: This set of tools helps in making meaningful analysis of data and optimizes customer experiences through the use of artificial intelligence. Another example is the Google case with Airbus (2016) which works with production efficiency enhanced by 20% since it predicts the occurrence of small problems with machines (Bisong, 2019). 4. Amazon Alexa for Business: This tool makes it easier to work, especially when setting up meetings in an office and or managing work reminders. Alexa for Business has managed to bring about the slashing of meeting setup time by about 30% interfering with administrative posts in offices (Ramadan et al., 2021). 5. Adobe Sensei: Designed for creativity, Adobe Sensei applies artificial intelligence and machine learning to enhance productivity in graphic design and digital marketing. Usage of Sensei can trim image processing time by up to 50%, thereby holding the potential to enhance designers’ efficiency (Ghorbani, 2023).
- 9. 9 6. Oracle AI: The AI platform can improve business processes and financial reporting while gaining customer information. Oracle has estimated that AI tools have helped to reduce the time taken to complete finance closes by up to a third, moving financial analysts away from the task of reconciliation to strategic planning (Godbole, 2024). 7. SAP Leonardo Machine Learning: This ensures applications are enriched by new features mainly in machine learning. User experience (2020) with SAP Leonardo indicates that companies that have adopted its use in logistics and supply chain management have seen a 40% enhancement in production productivity (Keijzer, 2021). 8. Zoho AI - Zia: The AI assistant known as Zia can give estimates on sales and also automate CRM work. Zia has helped to increase sales productivity by 25% owing to its performance in the automation of data entry and qualification of leads (Damania, 2019). 9. Tableau AI: Einstein Discovery: This is an analytical tool embedded in Tableau, which provides solutions without requiring the intervention of businessmen. Tableau has examined organizations and reported that their instances of artificial intelligence usage result in an average of 35% time efficiency boost in data analysis (Patel, 2021). Studies on the Effectiveness and Acceptance of AI Tools A study on the Use and Perceptions of AI in the Workplace provides useful information about the perspectives of employees concerning AI products and the factors that are determinative for creating suitable conditions for the application of AI. According to Kaplan & Haenlein (2019), in the acceptance of AI among employees, perceived usefulness and ease of use were important factors to consider. Another work done to determine the rates of acceptance at the workplace by employees revealed a positive correlation between the visibility of AI tool contributors to job performance improvement and tool simplicity (Kaplan & Haenlein, 2019). Hasija & Esper (2022) discover that key drivers for AI are ensuring transparency and trust. The study also notes that when an employee understands how AI technology works to make its decisions or recommendations, and the employee trusts the technology, then the employee is more likely to rely on AI technology as a source of information for decision-making (Hasija & Esper, 2022). This research also emphasizes the need to create AI systems that are easy to understand and explain to ensure a favourable attitude towards AI and improved usage rates among workers; in turn, these tools will be able to influence the employees’ tasks and the way they complete them.
- 10. 10 3.2 Research Gap Identification of Gaps in Literature: Although this area has attracted a lot of attention regarding the application of AI in automating routine activities, there are a reasonable number of knowledge gaps, mainly related to the lack of comprehensive case studies and realistic investigations of human-AI collaboration at workplaces. A common gap that has been identified in research is the lack of long-term studies done on how integration of AI is going to affect employee roles, employee satisfaction and overall career paths. Further, according to the current literature, there is often a lack of thorough analysis of the human aspects of autonomous technologies, one of which is AI, including the human ability to adapt to AI, the evolution of their skills, and shifts in workplace culture (Brynjolfsson & McAfee, 2016). Need for More Empirical Studies on Human-AI Interaction: Qualitative work is also valuable to establish the short and long-term relationship between humans and AI workers in the course of usage. Recent research is deficient in terms of sampling, industry coverage, crosstalk with organizational culture, and the demographics of the workforce that can hardly remain indifferent to the trends in AI introduction. To be more precise, there is a need for more narrow field research that will result in having a more detailed understanding of how various sectors apply AI technologies in the best way possible (Kaplan & Haenlein, 2019). Importance of Understanding Technology Acceptance: Knowledge of technology acceptance is crucial as it determines the efficiency and effectiveness of organizational AI applications to support automation. Perceived usefulness, perceived ease of use, and perceived trust are invaluable in shaping employees’ attitudes towards AI and hence the overall success of AI implementation. However, published research has not paid substantial attention towards determining how these factors interact with one another in different organisational settings and hence, there is scope for focused research into these relationships (Fletcher et al., 2020). Relevance to Research Question: Mitigating these shortcomings ensures adequate filling of this knowledge gap by making a cohesive and comprehensive understanding of the contribution of AI in automating repetitive tasks possible. By understanding the relationship and involvement of people in AI more profoundly and the factors that make a difference in technology assimilation, scientists could
- 11. 11 bring about practical recommendations that let companies increase the adoption of their artificial intelligence strategy in a manner that augments employees’ functions efficiently. Potential Directions for Future Research: Future research should focus on longitudinal and Cross-sectional studies to evaluate the enduring impacts of AI on employee roles across different types of organizations and industries. Further, qualitative investigations focusing on the employees’ attitudes and experiences of the presence and application of AI will enrich the knowledge about technology acceptance and effectiveness of integration. These studies will also help to complement the existing knowledge, as well as shed light on the detailed process of how AI is changing the nature of people’s work.
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