Anita Nickerson APRJ 699 Applied Project Paper “Disruption through Artificial Intelligence - an HR focus” Submission Date: December 30, 2017 Word Count: 14,999 Student Number: 3016273 Academic Coach: Angela Workman-Stark Academic Supervisor: Andy Igonor Abstract This paper examines how Artificial Intelligence (AI) has already impacted companies and will create further changes within the workplace. There are many theories that are both in favour of and discourage the use of this technology. This paper is a literature review and from the readings the writers suggest that AI is still in its infancy stage even though we are already using AI: in our homes, cars and at work. There are fears that as AI evolves, it may take over most jobs and create huge unemployment affecting our economies and society. The doomsday prophecy is even more bleak in that it will take over our systems, create wars, thereby eradicating the human race. Those who have a positive outlook view; AI will allow more time for individuals for leisure as well as to obtain retraining while offering better opportunities to pursue well paid AI related jobs. The reader will learn about AI through the literature reviewed here and the potential benefits, disadvantages and risks, in order to understand before deciding to implement AI. The literature includes global studies conducted by large consulting firms on companies that currently or soon plan to use AI in the workplace. Some of the studies argue that AI will replace manual work with additional well-paying jobs. Other occupations will remain without major technological changes due to the complexities of the tasks that only humans can produce. There are scholarly theories and studies on how AI impacts workplace planning and how leaders will need to incorporate this in their current processes. The trend for AI is not simply a fad; rather, it is here to stay. The question is when will companies embrace this technology and what roles and processes will be adopted to create organizational effectiveness. There is an AI race with global technology leaders (Apple, Microsoft, Amazon) to be the first to create real AI that will learn on its own and be truly autonomous—able to think like a human. The paper will provide recommendations on how to adopt AI using human resources and project management methodologies. The paper concludes that some jobs and industries will be disrupted, and new ones will be created in the future. The reader will understand what type of occupations will be available to them or become extinct in the future for their own career planning purposes. The paper demonstrates businesses can benefit in leveraging HR analytics, to provide objective information; in predicting for talent management purposes. Upon learning how AI can benefit business and the positive applications, readers will learn how AI can help them both personally and professionally. In order for organizations to remain competitive it is essential to plan for AI now, or else risk losing out to others who leverage this opportunity to become early adopters of this fascinating technology. 2 Table of Contents Abstract ............................................................................................................................... 2 Table of Contents ............................................................................................................... 3 Introduction ......................................................................................................................... 4 Research Purpose and Questions ..................................................................................... 4 Research Design ................................................................................................................ 5 Literature Review ................................................................................................................ 6 What is Artificial Intelligence (AI)? .................................................................................. 7 Goals of AI ................................................................................................................... 8 Benefits of AI ............................................................................................................... 9 Risks of AI ................................................................................................................. 11 AI and Workplace Disruption ........................................................................................ 12 Jobs That Will Be Eliminated .................................................................................... 14 Industries That Will Be Impacted .............................................................................. 18 Jobs That Will Be Created ........................................................................................ 21 Ethics and AI ................................................................................................................. 25 Case Studies of Select Organizations and Industries ................................................. 26 Findings and Discussion .................................................................................................. 29 Recommendations and Future of AI in the Workplace.................................................... 31 Conclusion ........................................................................................................................ 35 References........................................................................................................................ 36 Appendix A ....................................................................................................................... 46 Appendix B ....................................................................................................................... 47 Appendix C ....................................................................................................................... 48 Appendix D ....................................................................................................................... 49 Appendix E ....................................................................................................................... 50 Appendix F ........................................................................................................................ 51 3 Introduction HR ONE Consulting Inc. (HRONE) is a boutique management consulting firm based in Toronto, Ontario. HRONE is comprised of two partners that provide human resources and project management consulting services. The strategic vision for HRONE is to provide high quality and impactful solutions for our clients that contribute to their success with positive economic results. Technology has evolved in business and helped eliminate some drudgery from day-to- day manual tasks thereby creating efficiencies, improved productivity and reduced business costs. Additionally, the automation of routine tasks affords workers to focus on more strategic deliverables. According to Josh Bersin in his article “Catch the Wave” he found in his research that the payoff for companies is 23 per cent greater financial returns in automation. Technology is disruptive to HR and how companies operate. Automation will impact operations and it will grow exponentially in the future. Business work has evolved ranging from: using pen and paper, typewriters, to computers, robots and automation (Siri) which has resulted in job loss (Kaplan, 2016). Technology has been part of business for decades, used to improve and automate processes for organizational effectiveness and one of the latest to enter the workplace is artificial intelligence (AI). The importance of this paper is for HRONE to remain relevant and plan on how AI can impact our business and our industry. The purpose of this study is to understand how AI is currently being leveraged in business along with future trends in order to find innovative, strategic solutions for our clients. The managerial domain of this paper is innovation within information technology and how AI will affect HR in business and its multiple stakeholders. This paper will be a literature review focusing on AI and its disruptive impact on the workplace today and into the future. Any business owner, leader or job seeker can gain advantage from reading this paper regardless of the size of the organization or location. In order for companies to remain competitive they will need to embrace this technology or risk becoming extinct. Research Purpose and Questions The purpose of this paper is to address the impact of AI while providing examples of industries that have been impacted by this technology. This paper examines benefits and disadvantages of this technology and any ethical implications and perceived risks in adopting this technology. The research goal of this paper is to demonstrate to what extent AI can be disruptive to the workforce in a global context within large organizations that create or leverage this technology. Currently, AI and the use of very expensive robotics is cost prohibitive for 4 smaller companies that have less than $1Million in net profits. The rationale for using larger organizations is their access to available resources (money and workforce) to make this technological shift. Additionally, there is research and information readily available where AI has been created and/or adopted within larger organizations. Some of the research range from scholarly academic