The Hidden Costs Of AI: Why Human Skills Still Drive Business Results

I’ve always been interested in how human skills like curiosity affect business performance, especially when it comes to saving companies money. That’s why I was interested in some recent research from IDC about the financial returns companies are getting from AI. Businesses are investing heavily in AI to improve productivity and reduce costs, but many aren’t seeing the results they expected. I spoke with Amy Loomis, Group Vice President, Workplace Solutions at IDC, to find out what companies getting better returns are doing differently and how human skills fit into the picture.

When Human Skills Are Overlooked, What Happens To The AI Savings?

If AI can do something in minutes that used to take an employee hours, most companies would consider that a success. But what if the savings aren’t as great as expected once companies account for everything involved in using the technology? That was one of the issues Loomis discussed when we talked about the costs companies may be overlooking.

IDC’s research found that only 15% of the organizations surveyed qualified as AI leaders, reporting returns of at least 50% on their investments. Loomis explained that these companies were approaching AI differently. “Leaders operate differently than those that are purely focused on operational efficiency,” she said. They were investing in employee development and making sure they had the right oversight in place. They were also looking at how AI could help grow the business rather than concentrating so heavily on cutting expenses.

How Human Skills Affect AI Mistakes And Employee Development

With all the predictions about AI replacing jobs, I asked Loomis how companies getting the best returns were planning to invest in employees. Her research found that 68% of AI leaders planned to increase the number of entry-level roles over the next 18 months. Another 63% planned to increase the number of middle management positions.