AI is a tool to multiply the impact of employees
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The article discusses how artificial intelligence can be used to augment employee capabilities rather than replace them, and proposes a new framework called 'Return on Employee' to measure its impact. By focusing on amplifying human productivity, companies can unlock new possibilities and growth.
The increasing use of artificial intelligence has raised concerns about job losses. However, the real issue is not the technology itself, but how its impact is measured. Companies have traditionally used the 'Return on Investment' framework, which focuses on cost reduction and can lead to labor being optimized out. A more useful approach is to consider 'Return on Employee', which measures the increase in value an individual can generate when augmented by technology. This perspective shifts the focus from reduction to amplification, enabling companies to unlock new possibilities and growth. Historically, the introduction of computers in the workplace led to increased productivity, with workers becoming four times more productive. Rather than reducing headcount, most companies chose to expand and grow into the new level of efficiency.
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