Anthony Onesto breaks down two AI paths for HR: automating tasks to cut costs, or augmenting workers to boost performance and revenue. HR leaders who push AI adoption now will shape how their companies change, rather than react to pressure from the board.
Hey everyone, it's Anthony Honesto and this is my latest AI and HR drop. Subscribe to my newsletter don't miss a future article. So I recently gave a presentation to investors. So this is family offices, private equity groups, VC groups and what I was trying to do was illustrate two simple ways for them to integrate AI into their portfolio companies. Now what's going to happen is they're going to pressure boards, boards are going to pressure CEOs and CEOs are going to look into their organization. I've said this before, HR folks need to raise their hand. The first path really obvious. We already see Shopify and now Fiverr sending out an email to to their employees from the CEO saying that AI is coming for their jobs. Efficiency is the first path, right? Easy enough. How do we automate this task? Now there haven't really been any full roles automated, although that will happen in the future. You're going to see a lot of tasks specifically being automated by AI and that's going to be something where it's going to drive efficiency. We want to do more, take on more and more and more and not necessarily necessarily have to add headcount every time. Again, I want to be very clear. There isn't many jobs or roles that are 100% automated by AI efficiency path. Very simple, very easy, bottom line impact. But the one path that a lot of folks don't really talk about was how do we enhance productivity. And I give credit to Matt Brinton, the CEO of Suzy, who just came out with a new book, Generation AI to really think about how to create an acceleration of performance for different parts of the organization. Focused a lot on the revenue side. So how do we take all these digital breadcrumbs in recorded conversations and and pitches and emails and how do we automate things or how do we build what. What he called the Susie Brain, which was all the information about our company. So making it super easy for sales folks to handle objections through a chatbot experience. Things like that which help to close more revenue. That is Alpha. Alpha in investing is how do we get an advantage over the average, right? How do we get returns that are more than what you would see in the normal returns for an S&P 500 ETF investment, whatever it is. So the alpha is how do we increase productivity or performance across the organization? You're starting to see AI support coding. Could we code faster with limited bugs or limited mistakes? So think about your AI transformation simply in two different paths in your organization as heads of HR1 Alpha. How do we make people better at what they do. How do we get more? From more performance or Alpha from our organization. And then two, of course. Is the easy one or the most obvious one? Efficiency. That's my latest drop. We'll see you next time.
