(Clicking on this link will take you to the NEC website where you can download the Roundtable Summary Report)

At the Nutanix .NEXT 2024 event in Barcelona, it became clear that the discourse around cloud computing has evolved significantly. The debate that once polarised organisations over whether on-prem/co-located data centres or public cloud was better has been decisively settled. Both cloud providers and on-prem equipment providers are thriving, as evident from their earnings reports. 

Hybrid cloud has emerged as the clear victor, offering the flexibility and control that organisations demand. This shift is particularly relevant for tech buyers in the Asia Pacific region, where diverse market maturities and unique business challenges require a more adaptable approach to IT infrastructure. 

The Hybrid Cloud Advantage 

Hybrid cloud architecture combines the best of both worlds. It provides the scalability and agility of public cloud services while retaining the control and security of on-prem systems. For Asia Pacific organisations, that often operate across various regulatory environments and face unique data sovereignty issues, this dual capability is invaluable. The ability to seamlessly move workloads between on-prem, private cloud, and public cloud environments enables enterprises to optimise their IT strategies, balancing cost, performance, and compliance. 

Market Maturity and Adoption in Asia Pacific 

The region shows a wide spectrum of technological maturity among its markets. Countries like Australia, Japan, and Singapore lead with advanced cloud adoption and robust IT infrastructures, while emerging markets such as Vietnam, Indonesia, and the Philippines are still in the nascent stages of cloud integration. 

However, regardless of their current maturity levels, organisations in Asia Pacific are recognising the benefits of a hybrid cloud approach. Mature markets are leveraging hybrid cloud to refine their IT strategies, focusing on enhancing business agility and driving innovation. 

Ecosystm research shows that 75% of organisations in Australia have a hybrid, multi-cloud strategy. Over 30% of organisations have repatriated workloads from the public cloud, and only 22% employ a “cloud first” strategy when deploying new services.  

Meanwhile, emerging markets see hybrid cloud as a pathway to accelerate their digital transformation journeys without the need for extensive upfront investments in on-prem infrastructure. Again, Ecosystm data shows that when it comes to training large AI models and applications, organisations across Southeast Asia use a mix of public, private, hybrid, and multi-cloud environments. 

Strategic Flexibility Without Compromise 

One of the most compelling messages from the Nutanix .NEXT 2024 event is that hybrid cloud eliminates the need for compromise when deciding where to place workloads – and that is what the data above represents. The location of the workload is no longer a limiting factor. Being “cloud first” locks organisations into a tech provider, whereas agility was once exclusively in favour of public cloud providers. Whether it’s for performance optimisation, cost efficiency, or regulatory compliance, tech leaders can now choose the best environment for every workload without being constrained by location. 

For example, an organisation might keep sensitive customer data within a private cloud to comply with local data protection laws while leveraging public cloud resources for less sensitive applications to take advantage of its scalability and cost benefits. I recently spoke to an organisation in the gaming space that had 5 different regulatory bodies to appease – which required data to be stored in 5 different locations! This strategic flexibility ensures that IT investments are fully aligned with business objectives, enhancing overall operational efficiency. 

Moving Forward: Actionable Insights for Asia Pacific Tech Leaders 

To fully capitalise on the hybrid cloud revolution, APAC tech leaders should: 

1. Assess Workload Requirements. Evaluate the specific needs of each workload to determine the optimal environment, considering factors like latency, security, and compliance. 
2. Invest in Integration Tools. Ensure seamless interoperability between on-premises and cloud environments by investing in advanced integration and management tools. 
3. Focus on Skill Development. Equip IT teams with the necessary skills to manage hybrid cloud infrastructures, emphasising continuous learning and certification. 
4. Embrace a Multi-Cloud Strategy. Consider a multi-cloud approach within the hybrid model to avoid vendor lock-in and enhance resilience. 

Conclusion 

The hybrid cloud has definitively won the battle for enterprise IT infrastructure, particularly in the diverse Asia Pacific region. By enabling organisations to place their workloads wherever they make the most sense without compromising on performance, security, or compliance, hybrid cloud empowers tech leaders to drive their digital transformation agendas forward with confidence. Based on everything we know today*, the future of cloud is hybrid. Reform your sourcing practices to put business needs, not cloud service providers or data centres, at the centre of your data decisions. 

*In this fast-changing world, it seems naïve to make sweeping statements about the future of technology! 

All eyes (including those of 15 million tourists) will be on Paris as they host the 2024 Olympics Games. The International Olympic Committee (IOC) recently introduced an AI-powered monitoring system to protect athletes from online abuse. This system demonstrates AI’s practical application, monitoring social media in real time, flagging abusive content, and ensuring athlete’s mental well-being. Online abuse is a critical issue in the 21^st century. The IOC chose the right time, cause, and setting. All that is left is implementation. That’s where reality is met.  

While the Googleplex doesn’t emanate the same futuristic aura as whatever is brewing within its walls, Google’s AI prowess is set to take centre stage as they partner with NBCUniversal as the official search AI partner of Team USA. By harnessing the power of their GenAI chatbot Gemini, NBCUniversal will create engaging and informative content that seamlessly integrates with their broadcasts. This will enhance viewership, making the Games more accessible and enjoyable for fans across various platforms and demographics. The move is part of NBCUniversal’s effort to modernise its coverage and attract a wider audience, including those who don’t watch live television and younger viewers who prefer online content. 

From Silicon Valley to Main Street 

While tech giants invest heavily in GenAI-driven product strategies, retailers and distributors must adapt to this new sales landscape. 

Perhaps the promise of GenAI lies in the simple storefronts where it meets the everyday consumer. Just a short drive down the road from the Googleplex, one of many 37,000-square-foot Best Buys is preparing for a launch that could redefine how AI is sold. 

In the most digitally vogue style possible, the chain retailer is rolling out Microsoft’s flagship AI-enabled PCs by training over 30,000 employees to sell and repair them and equipping over 1,000 store employees with AI skillsets. Best Buy are positioning themselves to revitalise sales, which have been declining for the past ten quarters. The company anticipates that the augmentation of AI skills across a workforce will drive future growth.  

The Next Generation of User-Software Interaction 

We are slowly evolving from seeking solutions to seamless integration, marking a new era of User-Centric AI.  

The dynamic between humans and software has mostly been transactional: a question for an answer, or a command for execution. GenAI however, is poised to reshape this. Apple, renowned for their intuitive, user-centric ecosystem, is forging a deeper and more personalised relationship between humans and their digital tools.  

Apple recently announced a collaboration with OpenAI at its WWDC, integrating ChatGPT into Siri (their digital assistant) in its new iOS 18 and macOS Sequoia rollout. According to Tim Cook, CEO, they aim to “combine generative AI with a user’s personal context to deliver truly helpful intelligence”.  

Apple aims to prioritise user personalisation and control. Operating directly on the user’s device, it ensures their data remains secure while assimilating AI into their daily lives. For example, Siri now leverages “on-screen awareness” to understand both voice commands and the context of the user’s screen, enhancing its ability to assist with any task. This marks a new era of personalised GenAI, where technology understands and caters to individual needs. 

We are beginning to embrace a future where LLMs assume customer-facing roles. The reality is, however, that we still live in a world where complex issues are escalated to humans. 

The digital enterprise landscape is evolving. Examples such as the Salesforce Einstein Service Agent, its first fully autonomous AI agent, aim to revolutionise chatbot experiences. Built on the Einstein 1 Platform, it uses LLMs to understand context and generate conversational responses grounded in trusted business data. It offers 24/7 service, can be deployed quickly with pre-built templates, and handles simple tasks autonomously.  

The technology does show promise, but it is important to acknowledge that GenAI is not yet fully equipped to handle the nuanced and complex scenarios that full customer-facing roles need. As technology progresses in the background, companies are beginning to adopt a hybrid approach, combining AI capabilities with human expertise.  

AI for All: Democratising Innovation 

The transformations happening inside the Googleplex, and its neighbouring giants, is undeniable. The collaborative efforts of Google, SAP, Microsoft, Apple, and Salesforce, amongst many other companies leverage GenAI in unique ways and paint a picture of a rapidly evolving tech ecosystem. It’s a landscape where AI is no longer confined to research labs or data centres, but is permeating our everyday lives, from Olympic broadcasts to customer service interactions, and even our personal devices. 

The accessibility of AI is increasing, thanks to efforts like Best Buy’s employee training and Apple’s on-device AI models. Microsoft’s Copilot and Power Apps empower individuals without technical expertise to harness AI’s capabilities. Tools like Canva and Uizard empower anybody with UI/UX skills. Platforms like Coursera offer certifications in AI. It’s never been easier to self-teach and apply such important skills. While the technology continues to mature, it’s clear that the future of AI isn’t just about what the machines can do for us—it’s about what we can do with them. The on-ramp to technological discovery is no longer North-South Highway 101 or the Googleplex that lays within, but rather a network of tools and resources that’s rapidly expanding, inviting everyone to participate in the next wave of technological transformation.

In my previous blogs, I outlined strategies for public sector organisations to incorporate technology into citizen services and internal processes. Building on those perspectives, let’s talk about the critical role of data in powering digital transformation across the public sector.

Effectively leveraging data is integral to delivering enhanced digital services and streamlining operations. Organisations must adopt a forward-looking roadmap that accounts for different data maturity levels – from core data foundations and emerging catalysts to future-state capabilities.

Click here to download ‘Building Resilient Public Services Through Advanced Data Management‘ as a PDF

1. Data Essentials: Establishing the Bedrock 

Data model. At the core of developing government e-services portals, strategic data modelling establishes the initial groundwork for scalable data infrastructures that can support future analytics, AI, and reporting needs. Effective data models define how information will be structured and analysed as data volumes grow. Beginning with an Entity-Relationship model, these blueprints guide the implementation of database schemas within database management systems (DBMS). This foundational approach ensures that the data infrastructure can accommodate the vast amounts of data generated by public services, crucial for maintaining public trust in government systems. 

Cloud Databases. Cloud databases provide flexible, scalable, and cost-effective storage solutions, allowing public sector organisations to handle vast amounts of data generated by public services. Data warehouses, on the other hand, are centralised repositories designed to store structured data, enabling advanced querying and reporting capabilities. This combination allows for robust data analytics and AI-driven insights, ensuring that the data infrastructure can support future growth and evolving analytical needs. 

Document management. Incorporating a document or records management system (DMS/RMS) early in the data portfolio of a government e-services portal is crucial for efficient operations. This system organises extensive paperwork and records like applications, permits, and legal documents systematically. It ensures easy storage, retrieval, and management, preventing issues with misplaced documents.  

Emerging Catalysts: Unleashing Data’s Potential 

Digital Twins. A digital twin is a sophisticated virtual model of a physical object or system. It surpasses traditional reporting methods through advanced analytics, including predictive insights and data mining. By creating detailed virtual replicas of infrastructure, utilities, and public services, digital twins allow for real-time monitoring, efficient resource management, and proactive maintenance. This holistic approach contributes to more efficient, sustainable, and livable cities, aligning with broader goals of urban development and environmental sustainability. 

Data Fabric. Data Fabric, including Data Lakes and Data Lakehouses, represents a significant leap in managing complex data environments. It ensures data is accessible for various analyses and processing needs across platforms. Data Lakes store raw data in its original format, crucial for initial data collection when future data uses are uncertain. In Cloud DB or Data Fabric setups, Data Lakes play a foundational role by storing unprocessed or semi-structured data. Data Lakehouses combine Data Lakes’ storage with data warehouses’ querying capabilities, offering flexibility, and efficiency for handling different types of data in sophisticated environments.  

Data Exchange and MOUs. Even with advanced data management technologies like data fabrics, Data Lakes, and Data Lakehouses, achieving higher maturity in digital government ecosystems often depends on establishing data-sharing agreements. Memorandums of Understanding (MoUs) exemplify these agreements, crucial for maximising efficiency and collaboration. MoUs outline terms, conditions, and protocols for sharing data beyond regulatory requirements, defining its scope, permitted uses, governance standards, and responsibilities of each party. This alignment ensures data integrity, privacy, and security while facilitating collaboration that enhances innovation and service delivery. Such agreements also pave the way for potential commercialisation of shared data resources, opening new market opportunities. 

Future-Forward Capabilities: Pioneering New Frontiers 

Data Mesh. Data Mesh is a decentralised approach to data architecture and organisational design, ideal for complex stakeholder ecosystems like digital conveyancing solutions. Unlike centralised models, Data Mesh allows each domain to manage its data independently. This fosters collaboration while ensuring secure and governed data sharing, essential for efficient conveyancing processes. Data Mesh enhances data quality and relevance by holding stakeholders directly accountable for their data, promoting integrity and adaptability to market changes. Its focus on interoperability and self-service data access enhances user satisfaction and operational efficiency, catering flexibly to diverse user needs within the conveyancing ecosystem. 

Data Embassies. A Data Embassy stores and processes data in a foreign country under the legal jurisdiction of its origin country, beneficial for digital conveyancing solutions serving international markets. This approach ensures data security and sovereignty, governed by the originating nation’s laws to uphold privacy and legal integrity in conveyancing transactions. Data Embassies enhance resilience against physical and cyber threats by distributing data across international locations, ensuring continuous operation despite disruptions. They also foster international collaboration and trust, potentially attracting more investment and participation in global real estate markets. Technologically, Data Embassies rely on advanced data centres, encryption, cybersecurity, cloud, and robust disaster recovery solutions to maintain uninterrupted conveyancing services and compliance with global standards. 

Conclusion 

By developing a cohesive roadmap that progressively integrates cutting-edge architectures, cross-stakeholder partnerships, and avant-garde juridical models, agencies can construct a solid data ecosystem. One where information doesn’t just endure disruption, but actively facilitates organisational resilience and accelerates mission impact. Investing in an evolutionary data strategy today lays the crucial groundwork for delivering intelligent, insight-driven public services for decades to come. The time to fortify data’s transformative potential is now. 

We spoke about what public sector agencies should consider when building citizen-centric services. Integrating technology into organisational processes requires a similarly strategic approach that considers immediate needs, emerging enablers, and futuristic innovations.

Here is a comprehensive look at what public sector organisations should consider when integrating technology into processes.

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Click here to download ‘Transforming Public Sector Processes: A Roadmap to Unlocking Efficiency’ as a PDF.

1. Process Essentials: Laying the Groundwork

The immediate view focuses on deploying technologies that are widely adopted and essential for current digital service provision. These foundational technologies serve as the backbone for enhancing process efficiency.

• Code. At the most basic level, the foundation is built on code – the programming languages and frameworks used to create digital services. This includes technologies like HTML, CSS, JavaScript, Java, Python, etc. A typical approach is to have a front-end web layer for the user interface and a back-end application layer for processing.
• Monolithic ERP. These systems are also crucial, especially in the early stages. These integrated software suites help manage core functions like customer management and document handling. They provide comprehensive, pre-built solutions that can be customised to specific needs. ERPs enable organisations to effectively manage complex processes from the start.

2. Emerging Catalysts: Accelerating Processes

As organisations establish foundational technologies, they should look towards second-generation enablers. Although less mature, these technologies offer emerging digital opportunities, and can significantly enhance service differentiation, through improved processes.

• PaaS. As digital services mature, organisations can leverage platform-as-a-service (PaaS) solutions hosted in the cloud. PaaS provides greater scalability, flexibility, and reduced infrastructure management overhead compared to custom development approaches. Adopting a microservices architecture on PaaS allows for developing independent components that can be updated independently, promoting continuous improvement. This modern, modular approach is highly efficient.
• Low Code/ No Code. LC/NC platforms further simplify application development by providing intuitive, visual tools that don’t require extensive coding expertise. They build on PaaS capabilities while minimising the need for deep technical skills. These environments also facilitate collaboration by enabling partners and third-parties to easily create custom solutions that integrate with the organisation’s systems. This spurs innovation through an ecosystem of complementary apps and services.

3. Future-Forward Capabilities: Next-Gen Processes

The futuristic view focuses on forward-looking technologies that address long-term roadblocks and offer transformative potential. These technologies are currently speculative but hold the promise of significantly reshaping the market.

• Complex RPA and ML. Robotic process automation (RPA) and machine learning take technological maturity to the next level by automating routine tasks and optimising decision-making through intelligent algorithms. The integration of RPA with machine learning goes beyond simple automation to enable more complex, data-driven decision processes across the workflow. Analysts predict that by 2025, up to 50% of work could be automated this way, drastically improving efficiency.
• Enterprise-Wide Microservices Architecture. An enterprise-wide microservices architecture represents an advanced approach suitable for collaboration between agencies, technical service providers, and partners. Each microservice is designed to be independently deployable, testable, and focused on specific capabilities. This decentralised model allows services to be updated or replaced without disrupting the entire system, enhancing resilience. On a PaaS platform, it enables an agile, scalable approach aligned with modern e-government needs.
• Industry Cloud. The Industry Cloud is essentially a highly configurable PaaS solution, designed to meet the specific needs of not just one government agency or jurisdiction, but with adaptability for broader use.

Ecosystm Opinion

A comprehensive roadmap should outline how to build upon current process foundations with emerging catalysts like cloud platforms and low-code development, while actively preparing for future-forward capabilities around automation, microservices architectures, and industry cloud solutions.

By taking a long-term, systematic approach to integrating technology at every stage of the process lifecycle, agencies can cultivate an adaptable digital process ecosystem that continually evolves in lockstep with technological innovation. The goal is to foster processes that don’t just endure disruption, but fundamentally improve because of it – cementing organisational resilience and agility for decades to come.

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Click here to download ‘Transforming Data Centres: Equinix’s Platform and Service Integration’ as a PDF

Small Details, Big Impact

TIM SHEEDY. The tour of the new Equinix data centre in Sydney revealed the complexity of modern facilities. For instance, the liquid cooling system, essential for new Nvidia chipsets, includes backup cold water tanks for redundancy. Every system and process is designed with built-in redundancy.

As power needs grow, so do operational and capital costs. The diesel generators at the data centre, comparable to a small power plant, are supported by multiple fuel suppliers from several regions in Sydney to ensure reliability during disasters.

Security is critical, with some areas surrounded by concrete walls extending from the ceiling to the floor, even restricting access to Equinix staff.

By focusing on these details, Equinix enables customers to quickly set up and manage their environments through a self-service portal, delivering a cloud-like experience for on-premises solutions.

Equinix’s Commitment to the Environment

ACHIM GRANZEN. Compute-intensive AI applications challenge data centres’ “100% green energy” pledges, prompting providers to seek additional green measures. Equinix addresses this through sustainable design and green energy investments, including liquid cooling and improved traditional cooling. In Singapore, one of Equinix’s top 3 hubs, the company partnered with the government and Sembcorp to procure solar power from panels on public buildings. This improves Equinix’s power mix and supports Singapore’s renewable energy sector.

TIM SHEEDY Building and operating data centres sustainably is challenging. While the basics – real estate, cooling, and communications – remain, adding proximity to clients, affordability, and 100% renewable energy complicates matters. In Australia, reliant on a mixed-energy grid, Equinix has secured 151 MW of renewable energy from Victoria’s Golden Plains Wind Farm, aiming for 100% renewable by 2029.

Equinix leads with AIA-rated data centres that operate in warmer conditions, reducing cooling needs and boosting energy efficiency. Focusing on efficient buildings, sustainable water management, and a circular economy, Equinix aims for climate neutrality by 2030, demonstrating strong environmental responsibility.

Equinix’s Private AI Value Proposition

ACHIM GRANZEN. Most AI efforts, especially GenAI, have occurred in the public cloud, but there’s rising demand for Private AI due to concerns about data availability, privacy, governance, cost, and location. Technology providers in a position to offer alternative AI stacks (usually built on top of a GPU-as-a-service model) to the hyperscalers find themselves in high interest. Equinix, in partnership with providers such as Nvidia, offers Private AI solutions on a global turnkey AI infrastructure. These solutions are ideal for industries with large-scale operations and connectivity challenges, such as Manufacturing, or those slow to adopt public cloud.

SASH MUKHERJEE. Equinix’s Private AI value proposition will appeal to many organisations, especially as discussions on AI cost efficiency and ROI evolve. AI unites IT and business teams, and Equinix understands the need for conversations at multiple levels. Infrastructure leaders focus on data strategy capacity planning; CISOs on networking and security; business lines on application performance, and the C-suite on revenue, risk, and cost considerations. Each has a stake in the AI strategy. For success, Equinix must reshape its go-to-market message to be industry-specific (that’s how AI conversations are shaping) and reskill its salesforce for broader conversations beyond infrastructure.

Equinix’s Growth Potential

ACHIM GRANZEN. In Southeast Asia, Malaysia and Indonesia provide growth opportunities for Equinix. Indonesia holds massive potential as a digital-savvy G20 country. In Malaysia, the company’s data centres can play a vital part in the ongoing Mydigital initiative, having a presence in the country before the hyperscalers. Also, the proximity of the Johor Bahru data centre to Singapore opens additional business opportunities.

TIM SHEEDY. Equinix is evolving beyond being just a data centre real estate provider. By developing their own platforms and services, along with partner-provided solutions, they enable customers to optimise application placement, manage smaller points of presence, enhance cloud interconnectivity, move data closer to hyperscalers for backup and performance, and provide multi-cloud networking. Composable services – such as cloud routers, load balancers, internet access, bare metal, virtual machines, and virtual routing and forwarding – allow seamless integration with partner solutions.

Equinix’s focus over the last 12 months on automating and simplifying the data centre management and interconnection services is certainly paying dividends, and revenue is expected to grow above tech market growth rates.

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Innovation is a driving force behind new approaches, often occurring at the point of adoption rather than technology development. As public sector organisations increasingly focus on improving citizen services through technology, it is important to adopt a strategic approach that considers innovation as a complex journey of systemic and cultural transformation. This strategic approach should guide the integration of technology into citizen services.

Here is a comprehensive look at what public sector organisations should consider when integrating technology into citizen services.

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Download ‘Future-Proofing Citizen Services: Technology Strategies for the Public Sector‘ as a PDF

1. Immediate View: Foundational Technologies

The immediate view focuses on deploying technologies that are widely adopted and essential for current digital service provision. These foundational technologies serve as the backbone for enhancing citizen services.

Foundational Technologies

Web 2.0. Establishing a solid online presence is usually the first step, as it is the broadest channel for reaching customers. Web 2.0 refers to the current state of the internet, encompassing dynamic content and interactive websites.

Mobile Applications. Given that mobile usage has surpassed desktop, a mobile-responsive platform or a dedicated mobile app is crucial. Mobile apps provide a more specialised and immersive user experience by utilising device-specific features like GPS, document scanning, and push notifications.

2. Second-Generation Enablers: Emerging Technologies

As organisations establish foundational technologies, they should look towards second-generation enablers. Although less mature, these technologies offer emerging digital opportunities, and can significantly enhance service differentiation. 

Emerging Technologies

Interactive Voice Response (IVR) systems improve the efficiency and effectiveness of digital services by routing callers to self-service options and providing relevant information without human intervention. These systems operate outside typical government agency working hours, ensuring continuous accessibility. Additionally, IVRs generate valuable data for future Voice of the Customer programs, improving overall service quality and responsiveness.

Digital Wallets facilitate transactions by expediting fund transfers and enhancing transparency through meticulous transaction records. They streamline administrative tasks, simplify transactions, and encourage service usage and adoption. 

AI-driven Virtual Agents or chatbots revolutionise customer interactions by providing 24/7 support. They offer prompt, efficient, and personalised services, enhancing customer satisfaction and trust. In resource-limited public sectors, virtual agents are cost-effective, optimising resource allocation and meeting growing service demands. Specialised virtual agents for specific sectors can further differentiate service providers.

3. Futuristic View: Ambitious Innovations

The futuristic view focuses on forward-looking technologies that address long-term roadblocks and offer transformative potential. These technologies are currently speculative but hold the promise of significantly reshaping the market.

Innovations

Subscription Management models enable public sector information services to be accessed in highly personalised ways, thereby enhancing citizen engagement. This model supports regulatory oversight by providing common data insights and improves the management of services, ultimately benefiting the public by ensuring more responsive and tailored information delivery.

AI concierge leverages advanced technologies like Natural Language Processing, Computer Vision, and Speech Technologies to provide personalised and proactive customer service. They redefine customer management, ensuring a seamless and tailored experience.

Immersive reality technologies, such as augmented and virtual reality (AR/VR) create captivating customer experiences by allowing interactions in virtual environments. These technologies establish a shared virtual environment, helping customers to engage with businesses and each other in new and immersive ways. As an emerging customer management tool, immersive reality can transform the dynamics of customer-business relationships, adding substantial value to the service experience.

(Clicking on this link will take you to the ManageEngine site24x7 website where you can download the eBook)

In my earlier post this week, I referred to the need for a grown-up conversation on AI. Here, I will focus on what conversations we need to have and what the solutions to AI disruption might be. 

The Impact of AI on Individuals 

AI is likely to impact people a lot! You might lose your job to AI. Even if it is not that extreme, it’s likely AI will do a lot of your job. And it might not be the “boring bits” – and sometimes the boring bits make a job manageable! IT helpdesk professionals, for instance, are already reporting that AIOps means they only deal with the difficult challenges. While that might be fun to start with, some personality types find this draining, knowing that every problem that ends up in the queue might take hours or days to resolve. 

Your job will change. You will need new skills. Many organisations don’t invest in their employees, so you’ll need to upskill yourself in your own time and at your own cost. Look for employers who put new skill acquisition at the core of their employee offering. They are likelier to be more successful in the medium-to-long term and will also be the better employers with a happier workforce.  

The Impact of AI on Organisations 

Again – the impact on organisations will be huge. It will change the shape and size of organisations. We have already seen the impact in many industries.  The legal sector is a major example where AI can do much of the job of a paralegal. Even in the IT helpdesk example shared earlier, where organisations with a mature tech environment will employ higher skilled professionals in most roles. These sectors need to think where their next generation of senior employees will come from, if junior roles go to AI. Software developers and coders are seeing greater demand for their skills now, even as AI tools increasingly augment their work. However, these skills are at an inflection point, as solutions like TuringBots have already started performing developer roles and are likely to take over the job of many developers and even designers in the near future. 

Some industries will find that AI helps junior roles act more like senior employees, while others will use AI to perform the junior roles. AI will also create new roles (such as “prompt engineers”), but even those jobs will be done by AI in the future (and we are starting to see that).  

HR teams, senior leadership, and investors need to work together to understand what the future might look like for their organisations. They need to start planning today for that future. Hint: invest in skills development and acquisition – that’s what will help you to succeed in the future. 

The Impact of AI on the Economy 

Assuming the individual and organisational impacts play out as described, the economic impacts of widespread AI adoption will be significant, similar to the “Great Depression”. If organisations lay off 30% of their employees, that means 30% of the economy is impacted, potentially leading to drying up of some government and an increase in government spend on welfare etc. – basically leading to major societal disruption.  

The “AI won’t displace workers” narrative strikes me as the technological equivalent of climate change denial. Just like ignoring environmental warnings, dismissing the potential for AI to significantly impact the workforce is a recipe for disaster. Let’s not fall into the same trap and be an “AI denier”.  

What is the Solution?  

The solutions revolve around two ideas, and these need to be adopted at an industry level and driven by governments, unions, and businesses: 

• Pay a living salary (for all citizens). Some countries already do this, with the Nordic nations leading the charge.  And it is no surprise that some of these countries have had the most consistent long-term economic growth. The challenge today is that many governments cannot afford this – and it will become even less affordable as unemployment grows. The solution? Changing tax structures, taxing organisational earnings in-country (to stop them recognising local earnings in low-tax locations), and taxing wealth (not incomes).  Also, paying essential workers who will not be replaced by AI (nurses, police, teachers etc.) better salaries will also help keep economies afloat. Easier said than done, of course! 

• Move to a shorter work week (but pay full salaries). It is in the economic interest of every organisation that people stay gainfully employed. We have already discussed the ripple effect of job cuts. But if employees are given more flexibility, and working 3-day weeks, this not only spreads the work around more workers, but means that these workers have more time to spend money – ensuring continuing economic growth. Can every company do this? Probably not. But many can and they might have to. The concept of a 5-day work week isn’t that old (less than 100 years in fact – a 40-hour work week was only legislated in the US in the 1930s, and many companies had as little as 6-hour working days even in the 1950s). Just because we have worked this way for 80 years doesn’t mean that we will always have to. There is already a move towards 4-day work weeks. Tech.co surveyed over 1,000 US business leaders and found that 29% of companies with 4-day workweeks use AI extensively. In contrast, only 8% of organisations with a 5-day workweek use AI to the same degree. 

AI Changes Everything 

We are only at the beginning of the AI era. We have had a glimpse into the future, and it is both frightening and exciting. The opportunities for organisations to benefit from AI are already significant and will become even more as the technology improves and businesses learn to better adopt AI in areas where it can make an impact. But there will be consequences to this adoption. We already know what many of those consequences will be, so let’s start having those grown-up conversations today.