AI and Job Evolution: Shaping the Future Workplace
In an era marked by rapid technological advancements, AI’s impact on jobs is a major topic of discussion, particularly regarding its potential to displace roles. Rahul Kedia, Chief AI Officer at Sandvik Group IT, emphasizes that while AI may not directly replace jobs, individuals proficient with AI tools will outcompete those who are not. This reality underscores the urgent need for employees to embrace AI, transforming roles from traditional, manual tasks into streamlined, AI-assisted processes. In India, for instance, companies have begun integrating AI tools across sectors; Sandvik’s adoption of AI for candidate screening demonstrates how hiring processes are evolving. A 2023 McKinsey report supports this shift, predicting that “AI-driven automation will affect 400 to 800 million jobs globally by 2030.” However, this transformation is not about loss alone; as Kedia points out, new roles are emerging, including Chief AI Officers, data scientists, and AI ethicists, creating opportunities that didn’t exist a few years ago.
The key to navigating this shift is proactive upskilling. Sandvik encourages its workforce to develop AI competencies, thereby future-proofing their roles and aligning them with the company’s AI-driven vision. Sandvik’s strategic emphasis on AI in manufacturing, particularly in optimizing supply chain processes and customer interactions, further highlights the company’s commitment to harnessing AI across functions. This approach reflects a larger trend, as companies worldwide recognize that investing in AI is no longer a luxury but a necessity. The need for adaptable, AI-capable employees is becoming increasingly apparent, as demonstrated by the growing number of companies investing in AI-driven efficiency measures. According to the World Economic Forum, “85 million jobs will be displaced by 2025, but 97 million new roles will emerge, adapted to AI and automation.”
Regional Variations in AI Adoption: A Comparative Perspective
Kedia’s unique perspective, having experience in both European and Indian markets, highlights intriguing regional contrasts in AI adoption. While both regions are witnessing significant interest in AI, the cultural approaches to AI integration differ. In Europe, particularly in Sweden, companies like Sandvik follow a “pull” strategy where individual business units must first recognize AI’s value before adopting it. This approach, while reflective of Sweden’s decentralized, consultative business culture, may result in a slower adoption pace. In contrast, Indian firms like ITC and Hindustan Unilever adopt a more centralized strategy, which allows for faster, more cohesive implementation across the organization. This difference is underscored by a 2022 Capgemini report, which noted that “61% of companies in India have reached an advanced AI adoption level, compared to 48% in Europe.”
These adoption strategies are also shaped by the differing economic landscapes of India and Europe. In India, there is immense enthusiasm for AI as a tool for rapid growth in a booming market, which has accelerated its implementation. AI has applications across India’s diverse sectors, from agriculture to retail, transforming traditional practices through digital solutions. In contrast, Europe’s emphasis on regulatory compliance and data privacy may create a more cautious approach to AI adoption. The European Union’s General Data Protection Regulation (GDPR), for instance, requires companies to adhere to strict data handling practices, impacting AI initiatives reliant on large-scale data processing. Despite these differences, the global trend is toward a gradual convergence in AI adoption, with both regions recognizing the transformative power of AI in enhancing productivity and competitiveness.
Change Management in a Legacy Organization: Overcoming Cultural and Operational Barriers
For a company like Sandvik, with a rich 165-year history, adopting AI poses unique challenges. Change management in such an environment requires overcoming long-established routines and mindsets. Kedia acknowledges the challenge of integrating AI into processes that have remained largely unchanged for decades, particularly when it comes to veteran employees who may be resistant to new methods. Sandvik’s approach involves demonstrating AI’s value by focusing on projects with high ROI, such as optimizing warehouse slotting and pick-up processes. By leveraging AI-powered simulators, Sandvik has successfully reduced walking distances in its distribution centers, thereby enhancing operational efficiency and improving customer satisfaction.
Research by Gartner supports this strategy, noting that “organizations that prioritize ROI in digital transformation projects are 33% more likely to achieve sustainable results.” Sandvik’s commitment to fostering a results-driven approach to change management not only aligns AI initiatives with business outcomes but also encourages buy-in from employees. Additionally, change management requires ongoing support from business leaders who can champion AI adoption. Kedia emphasizes the importance of securing leadership support for AI projects that yield clear business benefits, as this support can drive a cultural shift toward digital transformation. As Sandvik’s example illustrates, effective change management involves demonstrating AI’s tangible benefits while cultivating a mindset that is open to continuous innovation, ultimately bridging the gap between traditional and modern practices.
Data Quality and Bias: Ensuring Reliable AI-Driven Decision-Making
AI’s effectiveness depends heavily on the quality and diversity of data it processes. As Kedia points out, “AI without data is useless,” emphasizing the importance of AI-ready data rather than striving for perfection. Many companies struggle with data quality, yet focusing exclusively on flawless data can delay AI implementation, impeding potential business gains. Kedia suggests a pragmatic approach where companies improve data quality in parallel with deploying AI solutions. This strategy aligns with industry best practices, as Accenture notes that “90% of businesses report data as a crucial asset, yet 33% of executives feel that data quality remains a key barrier to effective AI use.” For AI to deliver accurate insights, companies must establish data frameworks that prioritize quality while allowing for incremental improvements.
AI models can also reflect human biases embedded in the data, affecting fairness and inclusivity. Kedia highlights this concern by noting how AI models, like ChatGPT, often produce Westernized interpretations of common scenarios, which may not represent a global perspective. Bias in AI is an ongoing issue, and as Kedia observes, it presents an opportunity to refine both data inputs and societal perceptions. Initiatives to counter AI bias include data diversification, where datasets are curated to reflect broader demographic and cultural representations. The World Economic Forum warns that “if left unchecked, bias in AI could reinforce existing social inequalities.” To mitigate these risks, companies must invest in AI ethics frameworks and diverse data sourcing, ensuring AI-driven decisions are accurate, fair, and culturally inclusive.
The Future of AI in Digital Products and Services: A New Frontier for Innovation
Looking forward, Kedia is excited about the potential of digital products and services to transform Sandvik’s business model, particularly in the face of market saturation in sectors like tooling due to electrification. His enthusiasm aligns with a broader industry shift toward digital solutions that enhance revenue and create new value streams. Sandvik’s exploration of AI-driven digital products exemplifies how legacy companies can adapt to changing market dynamics through innovation. For example, Sandvik’s digital initiatives in mining equipment and metal cutting tools not only improve operational efficiency but also open new revenue opportunities by integrating AI-powered services directly into product offerings. This strategy reflects a growing trend in the manufacturing sector, where companies use AI to add value to physical products through digital enhancements.
As AI continues to advance, multi-modal AI and generative models offer exciting prospects for product innovation. Multi-modal AI, which combines text, image, and video processing, allows companies to create comprehensive solutions that meet diverse customer needs. The Boston Consulting Group projects that “the market for digital services and products enhanced by AI is expected to reach $3 trillion by 2030.” Sandvik’s focus on AI-powered digital services not only reinforces its position as an industry leader but also ensures long-term adaptability. By investing in AI-driven products, Sandvik is not only meeting current market demands but also setting the stage for future growth in an increasingly digital economy. As Kedia envisions, the role of AI in digital products and services will be transformative, enabling companies to innovate continuously while addressing emerging challenges and opportunities in the market.
Conclusion
Rahul Kedia’s insights underscore the strategic importance of AI across multiple facets of business, from job evolution to data quality, change management, and product innovation. As AI becomes an integral part of modern enterprises, the key to success lies in aligning AI initiatives with business outcomes, fostering a culture of adaptability, and addressing data quality and bias. For companies like Sandvik, the journey toward digital transformation is as much about people and processes as it is about technology. Embracing AI requires a balanced approach, where the benefits of automation and efficiency are carefully weighed against the human elements of change management and ethical data practices.
As AI continues to evolve, its role in reshaping industries will expand, offering companies unprecedented opportunities for growth, innovation, and competitive advantage. By investing in AI and upskilling their workforce, organizations can ensure that they remain at the forefront of technological advancements. Sandvik’s approach serves as a model for other companies looking to harness the potential of AI, emphasizing the need for thoughtful implementation and a commitment to continuous learning. As Kedia aptly notes, AI will not replace jobs, but individuals and companies who embrace AI will outpace those who do not. In this new era of digital transformation, companies that integrate AI strategically will not only survive but thrive, setting new standards for innovation and success.