How will generative AI shape the workforce or organizations of the future? We should look to the past and the emergent signals around us today to predict that.

Since the dawn of civilization, technology has been the primary driver of human progress. It has shaped our societies, our economies, and our cultures, acting as a catalyst for unprecedented change and evolution. From the first stone tools of our prehistoric ancestors to the advanced Artificial Intelligence systems of today, technology has persistently pushed the boundaries of what is achievable, transforming impossibilities into new realities.

From Linear to Agile: Impact of Internet and Mobile Technology

The advent of the internet in the late 20th century was the initial catalyst for the shift from linear (think Ford's assembly line) to more flexible working styles. It enabled instant communication, real-time & asynchronous data sharing and eventually paved the way for cloud-based collaborative platforms. Teams could now operate in different geographic locations yet collaborate as if they were in the same office. This flexibility triggered the rise of Agile and Lean methodologies, initially within software development but soon spreading to other business functions.

More recently, the emergence of AI and machine learning has initiated another critical phase of this technological journey. It's shifting the paradigm from a human-centric one to a collaborative intelligence model, where humans and machines work together, amplifying each other's strengths. This shift will bring about a new age of productivity, creativity, and inclusivity, leading us into an era of 'augmented humanity.'

***Resleeve uses generative AI to create fashion designs instantly.***

Today, AI's role in organizations extends far beyond rote automation; it promises a transformative impact on our society, business competition, and the workforce. A specific subset, Generative AI, is at the forefront of this disruption, challenging our conventional conception of creativity and influencing knowledge work dynamics in unprecedented ways.

Generative AI models, such as GPT-4 by OpenAI, have evolved significantly over the past few years, producing high-quality content that rivals human output across various tasks. These models learn from vast amounts of data and generate new data that mirrors the training set's patterns and structures. As such, they're versatile, capable of creating anything from text, images, and music to complex 3D environments.

Artificial Intelligence (AI) is no longer a distant technology of the future. It's here, redefining the contours of our work, reshaping industries, and rewriting the rules of engagement within organizations. The impact of AI on our ways of working, specifically in knowledge-based or technology-centric businesses, will be profound and far-reaching.

***Expect AI to 'Flatten' and Remove Layers from Org Charts.***

Part 1: Reimagining Org Structures

AI is set to revolutionize hierarchical organizations by introducing a new age of "flatter," more democratic structures. The traditional top-down model will give way to decentralized structures, where AI-driven decision-making will reduce bureaucratic red tape, expedite processes, and cultivate a culture of informed decision-making at all levels. By the mid-2020s, more organizations will begin adopting this transformative shift due to cost pressure, taking out 'spans and layers' and dramatically impacting the middle management job market.

As we learn to work alongside AI, the technology is reshaping the organizational chart by liberating workers, transforming roles and flattening top-down company hierarchies.1

Generative AI functions as a sophisticated decision support system, interpreting data in ways that enhance strategic planning and decision-making, once the sole responsibility of top management. With AI democratizing access to insights, the need for multiple management layers lessens, moving towards flatter, more agile structures.

Moreover, Generative AI could facilitate teams collapsing into smaller, more independent units. These units can work autonomously, guided by AI insights, and connect dynamically with others to form temporary teams or 'pods' as project requirements change. This flexibility and dynamism lead to more efficient and responsive organizations.

Part 2: Transforming Teaming Dynamics

The way teams interact and operate is set for an AI-driven overhaul. More than just tools for automation, AI will foster a new era of collaboration and productivity. By the late 2020s, virtual collaboration, powered by AI, will become the [next] new normal, extending beyond remote work to include international collaborations, cross-cultural problem-solving, and global ideation.

"AI will change the way we work together. In the future, teams will be more distributed and collaborative, as AI-powered tools and systems make it easier for people to work together from anywhere in the world." - Andrew McAfee, Principal Research Scientist at MIT Sloan School of Management

AI tools will manage mundane administrative tasks, freeing more time for creative and complex problem-solving. As a result, a new dynamic of "co-creation" will emerge, where human creativity and AI's data-crunching capabilities will come together to deliver solutions faster and more efficiently.

***AI-Powered Tools Like Microsoft 365 Copilot will Shape How Workers Make Decisions.***

Teams will interact with AI to receive real-time feedback, advice, or solutions, thus enabling faster decision-making and problem-solving. This AI-supported interaction will foster a more inclusive and constructive dialogue, shifting away from opinions and personal biases. These changes will require teams to fully adopt working methods like Agile to support iterative and fast-paced interactions between people and AI.

Furthermore, as remote and hybrid working models become the norm, Generative AI can help overcome communication challenges, streamline collaboration, and maintain a shared context across geographically dispersed teams. AI could thus serve as a digital facilitator, fostering connection, empathy, and shared understanding.

Part 3: Birth of New Roles

While it may be tempting to view Generative AI as a threat to job security, organizations should instead view it as a transformative force. AI is poised to automate mundane tasks, freeing up time for more strategic, innovative work, thus boosting productivity and enabling a greater focus on customer and employee experiences.

Concerns about machines displacing human labor have existed since the dawn of the 19th century when "Luddites" protested against the mechanization of the textile industry. The Luddites believed that the new machines being introduced into the factories, such as power looms, threatened their employment opportunities. But the data tells us that the number and diversity of jobs have increased, especially among office workers.

***New Job Types Like 'AI Prompt Engineer' Are On the Rise.***

As AI technology evolves, new roles will emerge that we cannot yet imagine. For example, even since the tumult around Chat GPT earlier this year, one of the hottest job titles is "Prompt Engineer" -- a new role tasked with interacting with the emerging crop of AI tools to deliver more accurate and relevant responses. By 2030, we should expect roles such as AI Ethics Officers, responsible for ensuring the ethical use of AI, and AI Trainers, tasked with refining AI algorithms to understand and learn from human behavior. Furthermore, roles like AI-Based Scrum Masters could facilitate and optimize human-machine activities within Agile projects.

Part 4: Timeline for Impact

The Generative AI revolution will not happen overnight. It will be a gradual process that will unfold over the coming decade:

2023-2025: Early adoption phase. Progressive organizations will start to implement AI in prototypes and low-risk decision-making processes (e.g., semantic search & marketing communications). Early wins and proven efficiency will kickstart the shift towards collapsing roles & team structures -- for instance, sales & marketing. AI assistants will become more deeply integrated into development and operations teams, accelerating the migration towards Site Reliability Engineering (SRE) and Agile methodologies.
2026-2028: AI implementation becomes more widespread. The majority of technology vendors and solutions will have generative AI embedded as core capabilities. The first major changes in team dynamics will emerge as workers interact with ChatGPT-like agents as frequently as human coworkers. We'll see the first wave of new roles related to AI, with 20% of new job postings being newly created and 50% reflecting prompt engineering or AI interface skills (ala Microsoft Office in 2023).
2029-2031: AI will be fully integrated across organizational structures within Fortune 500 companies, and corporate hierarchies will be flattened by two layers on average. AI agents will routinely take on project tasks, working overnight alongside global teams. AI agents will manage 25% of workers. 75% of traditional customer support roles will shift to AI agents, with human labor reskilling into emerging data & conversational AI roles.

Startups and small, agile organizations will likely lead the way in deeply engraining AI into their workforce due to their inherent flexibility and openness to innovation. However, large corporations will be close behind, given their financial and labor resources. Industries ripe for disruption include data-rich industries such as finance, healthcare, and manufacturing. However, the impact will eventually permeate across all sectors.

The transformative power of AI will fundamentally redefine our organizations and how we work. It is not a matter of if but when and how profoundly this technology will reshape our organizations and workforce dynamics. To navigate this brave new world successfully, leaders must foster a culture of continuous learning and adaptation, encouraging their teams to embrace AI as a partner rather than a replacement.

This shift also necessitates rethinking our societal structures and norms, inviting us to reimagine education, governance, and ethical frameworks in this new light. While inherently neutral, technological advancement derives its true impact from how we, as a society, choose to use and control it. Our challenge is to wield these powerful tools responsibly, fostering an equitable, sustainable, and inclusive future for all.