Us Ai Institute Generative Ai and The Future of Work

Generative AI and
the future of work

The potential? Boundless.
Deloitte AI InstituteTM
Contents
EXECUTIVE SUMMARY
PART 1 | What is Generative AI and why is it disrupting work?

PART 2 | What is Generative AI’s likely impact on jobs?
PART 3 | Executive strategies to prepare organizations

for change
About the Deloitte AI Institute
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2
EXECUTIVE SUMMARY | Generative AI and the future of work
Generative AI and
the Future of Work
Boundless potential
PART 1
What is Generative AI? How is it being used? Better yet, how can you
and your organization prepare people to use it safely and efficiently?
Generative AI is a rapidly evolving branch of unthought of ways. Moreover, this is the
artificial intelligence designed to generate new first time a technological revolution of this
content ranging from text, code, and voice, to magnitude has been so widely accessible.
images, videos, processes, and other digital Anyone with an internet connection
artifacts, including intricate protein structures. can participate.
AI took a major leap with Generative AI and Its impact on humans

its ability to disrupt the way we work because
It’s important to keep in mind that Generative AI
of its ability to create content that profoundly
isn’t designed to replace humans, but it is about
supports human expertise and skills—writing
to change how they work. Ideally, Generative
memos and reports, designing website
AI can bolster innovation, productivity, and
graphics, creating personalized marketing
outcomes while making work easier for people.
strategies, and curating employee learning
programs, for example. The examples of For business leaders, globally, the challenge
Generative AI use cases by industry are is twofold: understanding the possibilities
boundless and illustrate the breadth of work and risks Generative AI brings and preparing
that can be augmented using Generative AI. for the inevitable organizational change that
is headed their way. The future success of
Generative AI is a true disruptive workforce Generative AI will hinge on a renewed focus
shift, indicative of a future in which humans, on humans.
work, and technology meld in previously
3
PART 2
Generative AI is expected to change the structure of “work” as we
know it. But before executives can change workflows or adjust
employee roles, it’s important to take a deeper dive into what
exactly is changing in the work.
Here’s the premise: if humans can use TASKS are specific activities performed to achieve
Generative AI to complete tasks faster, easier, work outcomes. Historically, we have thought of
or better than they could before because the tasks as part of the work people perform in jobs,
technology has certain skills, then we can start to and that’s still the case. Tasks require skills and
assign tasks differently. This is a key to success— tools to achieve a certain outcome. Generative AI
technology is not directly replacing jobs; rather may automate those tasks altogether, freeing up
it’s changing the tasks and skills we use to get the a worker’s ability to focus on new tasks, or they
work done. make those tasks easier for people and create
time for the individuals.
Work vs jobs vs tasks vs skills:
Understanding the difference Some tasks humans do better. Some tasks
machines do better. Some tasks are better done
WORK is defined as the outcome created by
with a combination of the two.
leveraging human capabilities and the tools that
have been invented to help accomplish the goal. SKILLS enable us to carry out the tasks
necessary to achieve work outcomes. Both
By nurturing a workforce equipped to adapt, That said, executives should begin to JOBS are the traditional construct to describe
humans and Generative AI have skills that
learn, and evolve with Generative AI, we can consider “futureproofing” the Generative the work humans do to achieve the outcomes.
can perform tasks to create work outcomes.
help ensure that we are shaping a future in AI-enabled workforce because work is apt to There’s significant concern about jobs
Understanding the skill sets within an
which technology serves as a tool for human shift quickly, and workers will need new skills. disappearing due to Generative AI’s ability to
organization and the various job roles that
empowerment—just as it was always meant The Generative AI revolution holds enormous automate tasks, but that’s not the complete
use them can shape the future of work with
to do. The need for humans didn’t diminish opportunities for organizations that prepare to picture. First, tasks aren’t jobs. Second, we need
Generative AI.
with the invention of the personal computer; adapt and evolve. to look at skills to understand how jobs will be
humans got better and faster at accomplishing redefined given the adoption of Generative AI.
work. If done well, Generative AI can aspire to
the same promise: Making humans better at
work and work better for humans™.
4
The great skills shift
Understanding the dynamic interaction

PART 3
between Generative AI and the workforce’s
Strategies to prepare organizations
skills and tasks is crucial for executives. By
recognizing which tasks can be automated, In the world of Generative AI disruption, the
which can be augmented, which will have role of leadership transcends traditional
limited impact, and which new tasks might management. Leaders must seize the reins,
emerge, organizational leaders can devise steering their organizations with clear vision
strategies to navigate the challenges and and strategic wisdom. It isn’t necessary for
opportunities posed by Generative AI and executives to be Generative AI experts—what
determine what kind of upskilling curricula is important is to create and manage by a
will be necessary for workers down the road. framework that focuses on and supports
Such insights will help executives prepare for a leadership’s vital role in guiding Generative
Generative AI future—readying their workforce AI-induced changes. In this framework,
for automation, strategizing for augmentation, leadership must consider the following:
appreciating human-centric skills, and even
• Visibly commit to Generative AI strategy
pioneering new roles.
• Champion the benefits of Generative AI
More and more organizations are putting a
• Openly address concerns and resistance
renewed emphasis on skills as they look to
retool their workforce in a Generative AI era • Foster a safe environment for
and for good reason. Skills-based organizations experimentation and learning
get results. Deloitte’s Skill-based Organization • Implement guidelines and governance
Survey offers some insights: organizations that for Generative AI usage ponsible use of AI
embed a skills-based approach are 63% more
By adopting a researcher’s mindset to explore
likely to achieve results than those that have
Generative AI, digging into the technology to
not adopted skills-based practices.
deeply understand and experiment with it, and
When we talk about Generative AI affecting jobs then harnessing the collective human and AI
and skills, we can’t overlook the significance potential in a way that is efficient and humane,
of human skills. Emotional intelligence, critical leaders can steer their organizations with
thinking, leadership, and complex problem- vision, adaptability, and a deep commitment to
solving are innately human attributes—all are human-centric progress.
challenging for machines to emulate.
We have long said it’s “humans with machines”

and not humans or machines that will
transcend leading organizations.
5
PART 1
What is Generative AI and
why is it disrupting work?
6
PART I | What is Generative AI and why is it disrupting work?
Did Generative AI create that advertising image you’re looking at?

What about the 3D model of a protein’s structure that a scientist
is examining?
In the case of the former, it just might have—
and it gave the advertiser the perfect image,
in only seconds from a text prompt, to
complement the advertising message. That may
not be lifesaving, but it’s a game-changer for
productivity at work.
In the case of the latter, yes, Generative AI can

do that—and just did. Scientists at MIT created
a computational tool that uses Generative
AI to create new protein structures. The
innovation has the potential to accelerate drug
development and improve gene therapy.1 That
definitely could be lifesaving. Also lifesaving?
AI’s ability to detect and warn hardhat workers Generative AI is a rapidly
of potential hazards at a mine by predicting
weather, oxygen levels, ground stability, and evolving branch of artificial
even human behavior and health via the use
of wearables.2,3 Not to mention its ability to
intelligence designed to
correctly diagnose nearly 40% of challenging generate new content
medical cases using Generative AI technologies.
The process can potentially help physicians
ranging from text, code,
make sense of complex medical data. and voice, to images, videos,
What is Generative AI? How is it being used? processes, and other digital
Better yet, how can you and your organization
prepare people to use it safely and efficiently?
artifacts, including intricate
protein structures.
7
This technology operates through a deep learning process, in

which the AI is trained on vast amounts of data and produces
new content by combining patterns.
For instance, a text-generating AI model can When humans and machines collaborate,
complete a sentence from a prompt, while an they can achieve something neither could do
image-generating AI model can create new independently.5 There’s greater impact and value.
visuals from a simple description. An image of In the “business” realm, Generative AI can:
an elephant standing on a bus? Generative AI • Translate audio into multiple languages
can create that in seconds. It can also create
• Revolutionize knowledge management to filter
personalized meal plans and shopping lists with
unstructured data
healthy living suggestions.
• Provide human-like support for complex
Its capabilities are far reaching and truly banking transactions
transformative. Generative AI can and should:
• Enhance fraud detection models
• Accelerate human innovation, making • Summarize technical documents
work easier and helping to solve bigger, • Automate clinical follow-ups by using notes
more complex challenges to create audio messages for patients to
• Deliver valuable outcomes and not just for schedule appointments
organizations, but for employees and society
at large
• Require thoughtful, purposeful adoption
via experimentation, demonstration, and
planning that provokes buy-in from employees
• Be implemented with only the highest
levels of ethics and trust using the
appropriate guardrails, frameworks,
and controls.
Image produced by Generative AI. The prompt we used was:

"Create an image of an elephant riding on top of a bus."
8
Generative AI has experienced accelerated

growth and investment in just a few months
While creating significant
and its rapid evolution marks a pivotal moment buzz around the possibilities,
for global executives navigating the future of
their industries. ChatGPT, an AI chatbot, is
Generative AI is bringing up
estimated to have reached 100 million monthly new challenges when it comes
active users just two months after launch.6
And other AI chatbots, like Google Bard and to the workforce, such as
HuggingChat, are quickly infiltrating the market how to reward people for
as well. It is a true disruptive workforce
shift, indicative of a future in which work contributing to Generative AI
and technology meld in ways previously
unthinkable. Moreover, this is the first
data models.
time a technological revolution of this
For example, Shutterstock, a leading global
magnitude has been so widely accessible
image content provider, recently announced
to anyone with an internet connection.
they are training DALL-E models using high-
quality photography from its own image
The Generative AI landscape is undergoing
library.7 This direct integration of an AI image
rapid expansion. Large Language Models
generator into Shutterstock’s platform enables
(LLMs) are being developed, enterprise
them to compensate artists for use of their
platforms are integrating Generative AI
images to train the model. This strategy not
models into their systems, and a plethora of
only helps safeguard the artists' interests,
Generative AI-based applications are emerging.
but also offers unique legal protections and
A significant wave of startups is leveraging
indemnifications for the generative content
AI to pioneer innovative solutions, causing
provided to its end users.
disruptive shifts in traditional sectors. Areas
such as content creation, education, software
development, and even art and design are all
being transformed by these Generative AI-
driven innovations.
9
Why Generative AI Potential Generative AI innovations by industry11

TEXT/CODE IMAGE/VIDEO SPEECH/AUDIO 3D
will impact work ENERGY,

RESOURCES
& INDUSTRIALS
Technical document
summarization
Extract information from detailed
New product development
Create detailed schematic
drawings of industrial products
Field virtual assistant
Enable field agents to access
best practices and repair
Geological assessments
Assess both real and synthetic
data for oil exploration and the
documentation and synthesize and parts to aid in new product information using natural likelihood of finding resources
In a few simple words: Because Generative AI field-reports in specific formats development and repairs language while hands-free
can create original content. FINANCIAL

SERVICES
Customer due
diligence reporting
Fraud detection Retail banking
transaction support
Financial model enhancement
Generate customer signatures to Generate synthetic data to

Generate reports on new enhance internal fraud models Provide human-like support improve and enhance financial
Shutterstock’s image generator is creating net Generative AI’s influence will continue to grow customers such as KYC (Know in areas such as credit card for complex retail transactions models and pressure test an
Your Customer) processes and authorization, and summarize including customer applications, institution’s liquidity
new images based on prompts. While graphic as both individuals and enterprises uncover summarize them for employees potential fraud hotspots questions, negotiations, and processes
designers can manipulate a photo using software increasingly innovative uses for it in everyday to action and make decisions and more
for customer onboarding
available today, it can take them significantly work and life. It is projected that 40% of
more time to achieve the same result. And it's enterprise applications will have embedded GOVERNMENT Intelligent case management Infrastructure mapping Intelligent agents/student Disaster recovery & planning
& PUBLIC office hours
not just capable of image creation. Its ability to conversational AI soon, a significant leap from Parse complex government case Enhance infrastructure mapping Support urban planners and
SECTOR
files for actionable details which and planning processes by Provide natural language support disaster recovery teams with
create content is far ranging. less than 5% in 2020.8 Generative AI's footprint generating detailed plans and for government services and
are then summarized for rapid synthetic data (e.g., traffic,
is anticipated to further expand by 2025, comprehension and used to iterating them using natural on-demand access to information population, ‘what-if scenarios’) to
AI took a major leap with Generative AI and accounting for approximately 10% of the total generate reports language for students aid in planning and preparation
its ability to disrupt the way we work because global data produced.9 Moreover, by 2027, nearly
of its ability to create content that profoundly 15% of new applications are expected to be TECHNOLOGY, Cybersecurity Semiconductor chip design Translations, subtitles, Telecom network maintenance
supports human expertise and skills—writing MEDIA & threat detection & descriptions
autonomously generated by AI, saving humans TELECOMM- Iterate and enhance designs Train digital twins on synthetic
memos and reports, designing website graphics, Summarize areas of high-risk, based on performance parameters Translate audio into multiple data to help identify network
hours of computer coding time, a reality that UNICATIONS
answer questions, and generate languages (e.g., subtitle
and reduce the development life faults and provide remediations
creating personalized marketing strategies, seems futuristic today.10 The broad integration of executive reports for malware, generation) and provide
cycle time for on-field technicians
and curating employee learning programs, for Generative AI signifies an important shift in the anomalies, and potential threats descriptions to visual
media content
example. The examples of AI-enabled content future of work, redefining our relationship with
creation listed in the table illustrate the breadth technology and reshaping our work ecosystems. LIFE SCIENCE & Medical history summary Improved medical imaging Automated follow-ups New drug discovery
of work that can be augmented using Generative HEALTH CARE
Summarize patient Generate large sets of synthetic Ingest clinical notes to identify Generate the structure and
AI. It’s important to keep in mind, however, that demographics, medical history, medical images to train imaging patients that will need follow-up function of proteins and
allergies, medications, and other algorithms to better identify and create audio messages that biomolecules, accelerating the
Generative AI isn’t designed to replace humans
relevant details from Electronic abnormalities as well as train can be sent to schedule them and creation of new drug candidates
but it is about to change how they work. Health Records (EHR) clinical clinicians to better identify issues encourage healthy habits
Ideally, in its perfect state, Generative AI notes to aid hospital intake
can bolster innovation, productivity, CONSUMER Personalized supermarket Product photography & details Conversational retail Rapid product design/
consumer preference
and outcomes while making work easier Create email campaigns with Generate details and ultra-realistic Provide detailed product
custom meal plans and shopping Accelerate product prototyping
for people. photographs of new and existing support and guidance using
lists fine-tuned for each buyer/ products in different environments human-like chatbots in retail lifecycle through creation of
family and specific to the store stores focused on specific unique and high-fidelity product
and what’s available brands and/or categories mock-ups, and create synthetic
behavioral data of buyers
10
While Generative AI holds immense potential, Additionally, these models have a limited
Generative AI and LLM-powered systems context window, meaning they can only work
including chatbots are not without risks. And, off limited data. The size of the combined
this is prompting discussion around issues such input has ramifications for the accuracy of the
ETHICS as accuracy, the potential for job losses, and output. In other words, the model may not have
legal questions around intellectual property all the information it needs.
RISK and ownership. What’s more, because the
chatbot mimics coherent human phrasing,
For business leaders around
it may give some the impression that the AI
BIAS understands the prompts to which it responds, the world, the challenge
requiring careful consideration in how humans
and Generative AI should interact.12 For
is twofold: understanding
example, employees will need to evaluate if the possibilities and risks
customers are interpreting AI systems the way
TRUST the organization intends. Generative AI brings and
preparing for the inevitable
There is an ever-pressing need for humans to
critically evaluate the outputs of Generative AI organizational change that is
RISK
RISK and ensure quality while enjoying the benefits
of efficiency. An AI model has no autonomy or
headed their way.
intent; it cannot be held accountable in any
meaningful sense.13
These models can sometimes produce

“hallucinations,” or fictional high-confidence
responses ungrounded in facts, not dissimilar
from humans’ dreams that create fictional
reality from the information stored in our brains.
While a little daydreaming at work may be good
for humans, people need the applications they
are using to be spot on. Generative AI can't yet
provide references for their generated content,
complicating validation.
11
What does this mean

for humans at work?
It almost goes without saying—and at the same time it can’t be
overemphasized—that Generative AI’s future success will hinge
on a renewed focus on humans.
By nurturing a workforce equipped to adapt, Of course, the nature of future trends and
learn, and evolve with Generative AI, we can disruptions is inherently uncertain. Generative
help ensure that we are shaping a future AI could as easily take a divergent path of
in which technology serves as a tool for concern versus one of allure, as Deloitte’s
human empowerment. Despite all the futurists point out in their report, Generative
hype, it’s not meant to replace humans, AI Dichotomies.14 But developing a keen
but to better unlock human potential— understanding of current trends and potential
just as technology was always meant workforce implications is a necessary and
to do. The need for humans didn’t diminish integral part of an organization’s Generative
with the invention of the personal computer. AI strategy. Executives should aim to create
They got better and faster at accomplishing a forward-looking, human-centered approach
work. If done well, Generative AI can aspire to that leverages Generative AI capabilities,
the same promise: Making humans better at prepares their workforce for the unknown,
work and work better for humans™. That being fosters a culture that embraces this
said, executives should begin to consider transformative technology, and positions
“future-proofing” the Generative AI-enabled their organization at the forefront of their
workforce because work is apt to shift quickly industry. Those companies that are quick
and workers will need new skills. to adapt are likely to be at an advantage.
12
Part of seizing opportunities involves preparing the organization for multiple

different futures. Before you think about how to harness Generative AI today it’s
important to explore potential futures in this rapidly changing landscape. Consider
these future scenarios as you plan for the organizational impacts of Generative AI.
POSSIBLE PROBABLE IDYLLIC
The Generative AI Backlash The AI Overreach The Symbiotic Ecosystem The Era of Constant Learning The Generative AI-enabled Renaissance
In this scenario, either due to over-reliance, In this potential future, without sufficient This scenario envisions a balanced Here, Generative AI evolves into As Generative AI takes over only routine
inflated expectations, or misunderstanding regulatory controls the use of Generative partnership between humans and a powerful learning tool, delivering universal tasks, it paves the way for a creative
of organizational change implications, there AI becomes rampant and unchecked. Generative AI. Tasks are distributed based personalized learning experiences for resurgence. Humans, relieved of monotonous
is disappointment with Generative AI. This scenario could lead to misuse, ethical on their suitability, leading to an effective continuous workforce upskilling. This future tasks, have more time to invest in creative,
A backlash could result against the technology, concerns, and potential harm to individual and efficient work environment. Humans could create a culture of human advancement innovative pursuits, leading to a surge
causing organizations to revert to more privacy and rights, as well as a potential public concentrate on strategy, complex problem- that positively impacts the labor market in original ideas and solutions.
traditional methods, slowing down the pace relations nightmare for companies who don’t solving and interpersonal connections, while where people are resilient amidst the
of digital transformation. place their own immediate restraints on it. Generative AI handles both repetitive and exponential evolution of technology.
data-heavy tasks as well as kick starting
creative processes.
As we navigate these and other diverse scenarios, the need

for agility, continuous learning, and adaptability becomes
paramount. The guiding principle should be to look for
opportunity in uncertainty. It's about leveraging disruptions as
springboards for growth and turning challenges into catalysts
for success. A blend of technical and adaptive skills can prime
the workforce for the Generative AI era.
13
PART 2
What is Generative AI's
likely impact on
human jobs?
14
PART 2 | What is Generative AI's likely impact on human jobs?
With the potential for widespread integration of Generative AI,

organizations are on the precipice of a significant shift in the
nature of work, with implications cascading to the workforce
and workplace.
Predictions for Generative AI’s impact on Another study estimates that 80% of the US
the future vary, but there's no doubt that workforce could have at least 10% of their tasks
As many as 8 out of 10
in this new era we’ll see work impacted— freed up by machines, while 19% could have at women (58.87 million)
in both large and small ways with entirely least 50% of their tasks automated.17 This study
new jobs created. Just take a look at also indicates that the implications of Large in the US workforce are
the research. Language Models (LLMs) to the workforce in occupations highly
are complex and uncertain and depend on
A report from Goldman Sachs was one of the
various factors such as the adoption rate, exposed to Generative
first to make predictions on the impact of
the complementarity or substitutability of
Generative AI on the workforce, saying that as
human and machine skills, the distribution
AI automation versus
many as 300 million jobs could be impacted
in some capacity, with some work (7% of
of benefits and costs, and institutional and only 6 of 10 men.
regulatory responses.18
current US employment) being substituted
with Generative AI, other work (63%) being Women may need more transitional
complemented by it, and with the remainder support and training as Generative AI
(20%) being unaffected.15 In addition, the report sweeps through organizations. As many
said that it is reasonable to expect a productivity as 8 out of 10 women (58.87 million) in the
boom with widespread adoption increasing US workforce are in occupations highly exposed
global GDP (Gross Domestic Product) worldwide to Generative AI automation versus only 6 of 10
by 7% over a 10-year period.16 These numbers men.19 Overall, 21% more women are exposed
have broad, sweeping impacts on the labor to AI automation than men, even though men
market. People will need support and training outnumber women in the workforce.20
to make the transition successful. Thoughtful These impacts are due to the affected
consideration should be made about what occupations being populated by more women
humans like to do and what work they’d prefer than men, including office and administrative
to be automated as organizations evaluate support, health care support, education and
the technology and the value it can bring to library services, as well as community and
productivity and work. social services.
15
to businesses, it may leave novice copywriters

Creative services and and ad designers in the awkward position
entertainment industry of needing to “learn the ropes” of their craft,
while simultaneously being asked to use AI to
workers also have valid replace some of that learning curve. Budding
concerns to contend with— professionals, eager to carve out a place for
themselves, now face competition not just
will Generative AI infringe on from their human peers but from sophisticated
their intellectual property? technology that boasts vast experience right
out of the box. For young aspirants, the playing
Will it compromise creative quality? (43% field might seem frighteningly unsure.24
believe it will.21) Will their jobs disappear?
Indeed, with generative AI chatbots, like So, what's the way forward for people
Google Bard and HuggingChat, now dependent on content creation? First and
capable of autonomously producing content, foremost, it's crucial to recognize that while
it's valid for creators to question where they fit Generative AI can generate content, the depth,
in the future landscape. And question they do: nuance, and cultural awareness of human
Research suggests that nearly 40% of creation are irreplaceable. As some analysts
entertainment industry workers in the US predict, human-made content could even
have reservations about Generative AI’s attain a premium status amidst the Generative
effect on their roles.22 AI is also a sticking AI content deluge. Moreover, it's imperative
point in the recent Writers Guild of America for educational institutions to evolve. Beyond
strike—a specific demand was that studios traditional learning, emphasis on real-world
should not use AI to write or rewrite literary experience through avenues like internships,
material for use in the production of film and apprenticeships, and practical training
television. Further implied in the demand is that could bridge the widening experience gap.
the “writer” must be an actual person.23 These Preparing students for a world intertwined
concerns also play out across the advertising with Generative AI will be pivotal.
world, where AI can be used to create ad copy.
While this efficiency is undoubtedly appealing
16
Generative AI can improve efficiency,

create customized experiences,
and spark new capability. While the
impact to workers is likely a story of
augmentation versus replacement,
for many, AI still represents a potential
existential threat to their professions.
And while the nuances and cultural insights
offered by human creators may never be
entirely replicated by machines, the fears
surrounding complete job automation
are real and valid.
17
How worried should certain Some data suggests that in the past,
workers be? The answer lies automation technologies increased wage
somewhere between “extremely inequality, as workers performing routine tasks
worried” to “not worried at all.” saw their job opportunities diminish, and wages
decline relative to others. But the initial fears of
As Generative AI continues job loss due to Generative AI may be misplaced.
Research from MIT suggests that workers with
to evolve and its applications the least education and career preparation
proliferate, the perspectives may benefit most from Generative AI.25 This
research observed a 14% productivity increase
on its implications for the among contact center agents who used a
conversational AI assistant, with the largest
global workforce are as varied gains seen among new or low-skilled workers.
as they are numerous. These workers were effectively upskilled
by the technology, rather than replaced.26
Reports and forecasts on the number and The Generative AI-enhanced workers increased
types of jobs that might be lost or changed are the number of customer chats resolved
released daily, leading to a swirl of ever-evolving per hour by 13.8%.27 Furthermore, less Less experienced
statistics and projections. The truth of “how experienced workers resolved 35% more chats
worried?” probably lies somewhere in per hour with the Generative AI model, while workers resolved
the middle of the spectrum. Generative productivity was flat for highly skilled workers.28 35% more chats
AI will undoubtedly disrupt existing jobs and The study details that minimal impact for
require new skills and capabilities, but it will highly skilled workers is because they already per hour with the
also enable new opportunities for productivity, experience best practices for efficiency and
performance, and creativity. The exact nature the tool may even serve as potential distraction
Generative AI model
of these changes and their overall impact on or reduce the quality of their work.29 The use
the workforce is a dynamic landscape that of the Generative AI model also improved
evolves as Generative AI itself develops. customer sentiment, leading to fewer
requests to speak with a manager and more
efficient transfers to relevant departments.
In addition, companies like Samsung are
announcing enterprise versions of Generative
AI chatbot solutions to enhance employee
productivity, while protecting the safety of
their own data.30 Indeed, Deloitte has its own
version too.
18
Given the rapid pace of change and the varying The value behind
perspectives on the potential impacts of re-architecting work
Generative AI, it is clear that any attempt to
pinpoint precisely what the future will be is With the advent of AI, organizations are
likely to be overtaken by the pace of innovation, reimagining and optimizing nearly all aspects
but there is a growing sense that Generative of their business, each providing a unique
AI will augment the human workforce opportunity to evaluate the activities that can
rather than replace it. be automated, and the innately human skills
required to deliver better or new value to
What we can confidently clients and employees. This change requires
a careful reevaluation of current job roles, skills,
assert is that the Generative and workflows, followed by a comprehensive
re-design that integrates Generative AI
AI revolution holds enormous effectively. Organizational leaders and workers
opportunities for those should play a collaborative role in the initiative.
organizations that are While these efforts may sound like mechanics,
prepared to adapt and evolve. re-architecting the work opens the
door to improved individual and team
Workers should be able to co-create with performance and employee experience,
leaders on how it might be used and how to satisfaction, and retention. Breaking
inevitably reinvent their work with it. And the down and redistributing activities can create
organizations that communicate early and new opportunities for employees and make
often with sound lifelong learning strategies them even more valuable to the organization.
and support for employees can find themselves Evaluating short and long-term ways
ahead, maximizing productivity and taking Generative AI could benefit the organization,
advantage of all this new era will have to offer. the speed of those changes, and how it impacts
work is an important next step.
19
So, what is “work?”

It’s also important to carefully re-evaluate what we mean by “work,” in addition to “jobs, tasks, and
skills,” before we can talk about a comprehensive re-design of work that integrates Generative AI
effectively. We know that Generative AI will re-shape the architecture of work 31 because
it will cause disruption across many jobs and skills. We don’t know yet with certainty how these
disruptions will evolve and at what pace. Whether Generative AI augments human capabilities,
automates some tasks, fills in labor gaps, or dramatically transforms jobs, the objective is the same:
to equip organizations with the knowledge and strategies to capitalize on this technological shift
and ensure that humans are central to the solution.
Work
vs jobs
vs tasks
vs skills:
Understanding
the difference
Work, in the broadest sense, is the Jobs (sales representative, front-end Tasks are specific activities that are Skills enable us to carry out the tasks
outcome created (e.g., achieving sales developer, account manager) have been the performed to achieve work outcomes. necessary to achieve work outcomes (e.g.,
targets, enhancing user experience, increasing traditional construct to describe the work We have historically thought of tasks as being problem solving, proficiency in HTML, data
customer satisfaction) by leveraging both humans do to achieve these outcomes. part of the work performed by people in jobs analysis). Both humans and Generative AI
human capabilities and the tools they have There’s significant concern in the workforce and that’s still the case. Tasks require skills have skills that can perform tasks to create the
invented to help accomplish that goal. about jobs disappearing due to Generative and tools to achieve a certain outcome (e.g., outcomes of work. Understanding the skill sets
The desired outcomes, in alignment with AI’s ability to automate tasks, but that's not the identifying new potential sales channels, testing within your organization and the various job
organizational strategies or customer needs, complete picture—first, tasks aren’t jobs, and code across web browsers, creating targeted roles that use them can shape the future of
have always been defined by humans, and second, we need to look at skills to understand product offerings). Generative AI may automate work with Generative AI.
this continues to be the case. how jobs will be redefined given the adoption those tasks altogether, freeing up a worker’s
of Generative AI. ability to focus on new tasks, or they make
those tasks easier for people and create time
for the individuals.
20
The workforce lightbulb moment: Generative AI will have varied impacts on

Generative AI isn’t replacing jobs; different jobs and the workflows and processes
it’s affecting the tasks and skills that touch them. However, Generative AI will
we use to get the job done. impact initially in reallocating routine tasks
(whether physical or cognitive) from humans
Before you begin adjusting Here’s the premise: to machines. As you consider the impact on
certain jobs, remember that one of the most
workers' roles or changing If humans can use Generative important differences between Generative
workflow, it’s important AI to complete tasks faster, AI and “traditional” AI systems is the creation
of digital artifacts. AI outputs include labels,
to take a deeper dive into easier, or better than they numbers, and yes/no responses. Now with
Generative AI, new outputs can be created
what exactly is changing in could before because (audio, video, text, code, 3D models). Humans
the work. the technology has certain will still need to decide what outputs they
want, but their workflows for creating, iterating,
skills, we can start to assign designing, writing, summarizing, “drawing”, etc.
tasks differently. could significantly change.
This is a key to success—technology is not

directly replacing jobs; rather it's changing
the tasks and skills we use to get the work
done. This evolution of skills has always been
part of our history. Think about past inventions
like electricity, cell phones, and personal
computers. Today, it's more important than
ever for organizations to pay attention to this
evolution and prepare their workforce for
the future.
21
Understanding the dynamic

interaction between
Generative AI and the
workforce's skills and tasks
is crucial for executives.
By recognizing which tasks can be automated,
which can be augmented, which will have
limited impact, and which new tasks might
emerge, organizational leaders can devise
strategies to navigate the challenges and
opportunities posed by Generative AI and
determine what kind of upskilling curricula
will be necessary for workers down the road.
Such insights will help executives prepare
for a Generative AI future—readying
their workforce for automation,
strategizing for augmentation,
appreciating human-centric skills,
and even pioneering new roles.
There’s quite a bit of work to do.
22
Non-routine physical jobs
Roles such as plumbers, electricians, or chefs fall

into this category. These jobs call for substantial
problem-solving and adaptability, often in physical
How to break down a job environments that require human interaction.

While Generative AI might impact some
in the Generative AI era knowledge, communication, and administrative
Routine physical jobs parts of these jobs, overall, the impact will Routine cognitive jobs
Start by breaking down the types of jobs in your These jobs, which include tasks like factory likely be limited. These jobs, including roles like data entry, basic
organization. Here you can see what could benefit work, delivery, or housekeeping, are likely coding, and customer service, involve tasks that
from the technology and in what way. Jobs such as to be impacted by robotics and automation are positively impacted by Generative AI as it
these will have varying degrees of impact. technologies. Some tasks can be improved and relieves redundancy and boredom. Because of
augmented with Generative AI. A housekeeper Generative AI's ability to perform such tasks
may ask an AI assistant how to get ink out swiftly and without tiring, these roles could
of a sofa. However, physical work will undergo substantial changes.
still be required in many cases.
Data analyst jobs Which jobs Non-routine cognitive jobs
Jobs such as data scientists, financial analysts, carry tasks that Jobs that involve complex problem-solving,
or market researchers can significantly benefit Generative AI strategic thinking, or advanced technical skills
like medical consulting will likely see Generative
from Generative AI. Generative AI can automate
data analysis and augment the generation of
could impact? AI support them in their jobs. Generative AI
insights, and decision-making. These jobs, and could help provide data-driven insights, pattern
other knowledge-based worker roles (many recognition, or predictive analysis, but these
created with newer technological advancements) roles will still heavily rely on unique human skills.
were previously seen as protected from disruption,
but may see a disproportionate impact.
Creative Jobs
Social/emotional jobs
Large language and image models are
potentially revolutionizing creative Jobs such as therapists, social workers, or
professions, by automating the salespeople require high social and emotional
generation of text and images, such as intelligence. While Generative AI can provide data
articles, ads, and artwork. Humans still insights and automate administrative tasks, the
play a crucial role in providing creative primary human connection and understanding
prompts and evaluating the outputs. needed for these jobs remain crucial.
23
Examine the four types of impacts

Organizations need to carefully examine their
workforce and understand the impact of MACHINE SKILLS IMPACTS HUMAN SKILLS IMPACT
Generative AI in each job, as well as the impact
it will have on future upskilling. Understand
AUTOMATED TASKS: AUGMENTED SKILLS: HUMANS NEW SKILLS: LIMITED IMPACT TASKS:
what humans do best and how AI can support MACHINES DO BEST WITH MACHINES DO BEST HUMANS NEED HUMANS DO BEST
their efforts. While we’ll likely see all four types
of impact on the workforce, augmentation of skills Description Core functionalities and processes are Fundamentally human, but their With the emergence and integration of Predominantly human-centric, with
is the most likely scenario in the era of Generative entirely managed by Generative AI, efficiency, scale, or depth is enhanced Generative AI in various sectors, there are Generative AI having minimal to no
AI and work. And if that is indeed the case, then making human intervention minimal when paired with Generative AI tools. entirely new skill sets that professionals influence on their execution. They rely
almost all workers are going to need some type of or unnecessary. need to acquire to stay relevant and on uniquely human traits or complex
continuous learning support on how to effectively use efficient. judgments that Generative AI can't
AI and Generative AI in their jobs. For example, most replicate (yet).
workers will likely need to learn how to:
Examples AI can generate standardized, Creativity is inherently human, Continuous learning is pivotal in the Emotional intelligence is vital for
1 Use the right prompts repetitive content like answers

to routinely asked customer care
but when combined with AI, creatives
can be inspired by AI-generated ideas,
age of AI; professionals must perpetually
upskill and adapt to the ever-evolving
understanding and responding to human
emotions, something Generative AI lacks.
2 Verify the results for accuracy questions without human assistance.

AI can also personalize or customize
leading to innovative outputs. Similarly,
analytical thinking is augmented as AI
AI landscape. AI-tool management
is another emergent skill, as effective
Critical decision making in uncertain,
complex environments also remains a
3
content to individual user preferences can process vast datasets quickly, operation and oversight of AI tools mostly human skill, as it often demands
Know when to apply Generative AI
by analyzing data patterns without providing humans with insights to become integral in many professions. nuanced understanding and wisdom.
to a problem and when not to
human direction. make better decisions.
4 Edit Generative AI-produced content
Sample Machine-only Humans with machines Human-only Human-only

skills in the • Creation of images • Creativity • AI ethics and regulation • Persuasion and negotiation
category • Creation of written content • Analytical thinking • AI-human task management • Motivational leadership
• Data sorting and categorization • Problem solving • Generative AI output customization • Ethical judgment and integrity
• Routine forecasting • Research • Compassion
• Language translation • Data visualization • Building human relationships
• Simple graphic design • Strategic planning • Physical dexterity
• Simple trend spotting • Predictive analytics
• Rapid prototyping
24
Then break down those jobs

by tasks and skills
Organizations need to carefully examine their
workforce and understand the impact of skills
in each job, breaking them down into four groups:
• Automated tasks that machines do best

Mining &
ESTIMATED GENERATIVE AI IMPACT

• Limited impact tasks that humans do best Geological Engineers Radiologists Marketing Managers
Automated tasks Automated tasks Automated tasks
• Augmented skills that humans do best
Generative AI could potentially automate tasks Generative AI could potentially automate a vast majority of Generative AI can automate tasks like market research
with the support of machines
related to data evaluation, mine design modeling, tasks, particularly those involving image interpretation like analysis, sales forecasting, financial evaluation of product
and equipment optimization. MRI, CT, and PET scans, as well as quality control of images. development, and the assessment of marketing strategies,
• New skills that humans may need
Limited impact tasks providing instant insights and recommendations.
Limited impact tasks
More and more organizations are putting a renewed A lesser percentage of the role, including tasks like early- Limited impact tasks
Parts of the role, particularly in supervising personnel,
emphasis on skills as they look to retool their ensuring safety, and addressing complex environmental stage intervention procedures, patient counseling, and risk Human expertise remains crucial for tasks like staff hiring,
workforce in a Generative AI era and for good reason. issues, is likely to remain human-dependent. assessment, will likely remain human-centric. performance evaluations, resolving legal issues, advising on
market factors, and coordinating promotional activities, as
they require nuanced judgment and interactive skills.
Augmented skills Augmented skills Augmented skills

Engineers will leverage Generative AI for tasks such as Radiologists will likely use Generative AI to assist in image Marketing managers will need to adapt to AI tools for
mine mapping, air quality monitoring, and equipment interpretation, thus freeing up time for complex cases, analysis and strategic planning.
design, allowing them to focus more on innovative procedures, and patient consultations. New skills
FUTURE SKILL IMPACT
solutions for safety and environmental concerns.

New skills Marketing managers will need to monitor data privacy and
New skills
Radiologists will need to become proficient in interpreting ethical considerations concerning AI as well as strengthen
Upskilling in AI integration, data analytics, and ethical AI-analyzed results, understanding the limitations of AI- relationship building and creative strategy skills to create
considerations, especially concerning environmental based diagnostics and communicating them to patients differentiation in their campaigns.
sustainability and worker safety, will become increasingly and medical staff.
important for Mining and Geological Engineers.
25
See how IKEA is capitalizing

on skills: This is humans
and machines at their best
Going deeper into the skills required to complete a For a more in-depth look at a skills-based organization,
task will allow executives to get a clearer picture of Deloitte’s Skill-based Organization Survey offers some insights.34
the skills they lack today, the skills needed for the
Skills-based organizations see results

future, and the upskilling needed to ensure that
people can harness the potential of Generative AI.
Swedish furniture retailer IKEA is doing just that.

After the company launched an AI-bot called Billie,
which has handled 47% of customer inquiries over
63%
the past two years, it began retraining almost 10,000
call center workers as interior design advisors.32
The workers now provide design consultations, a
suggested product list, a floor plan and 3D visuals. Organizations that
By reskilling employees and adopting Generative AI, embed a skills-based More likely to achieve results36 than those
IKEA was able to create a new revenue stream and approach35 are that have not adopted skills-based practices
broaden its offerings to customers. IKEA’s goal is
to now provide lifelong learning opportunities
to employees, knowing that technological Skills-based organizations are...
change will be a constant in the future.33
107%
More likely to place talent effectively
98%
More likely to have a reputation
as a great place to grow and develop
98%
More likely to retain high performers
26
The great skills shift

Don't overlook the significance of human skills in an AI era.
The interplay between Generative AI and

jobs is multifaceted. By breaking down
When we talk about
jobs into the requisite skills needed to Generative AI affecting jobs
achieve work outcomes, we can gain a
clearer understanding of current skill
and skills, we can’t overlook
gaps, future skill requirements, and the the significance of human
varying effects of Generative AI across
different organizational sectors. As skills. Emotional intelligence,
Generative AI becomes increasingly embedded critical thinking, leadership,
in the workplace, the landscape of skills will
evolve—some will be augmented, others will and complex problem-
be automated, and new skills will emerge.
While there is obvious demand for roles that
solving are innately human
support the development, management, and attributes—all are challenging
governance of Generative AI, we see promising
opportunities for Generative AI fluency as a
for machines to emulate.
family of skills that will be woven into work
In addition, we are also seeing the growing
across functions and industries. These fluency
importance of inherently human capabilities
skills include AI prompting (which should get
such as empathy, curiosity, imagination, context
easier as AI systems get better) and validating
awareness, and teaming. Our experience has
AI weaknesses that will be required in every
shown that not only are people inherently
department of an organization. More technical
better than machines at connecting with and
skills in LLMs, Generative AI, and image
understanding the variable needs of other
processing will also surge in demand.37
people, and adapting to changing contexts,
but also that investing in these human traits
creates strategic advantage in the form of a
more adaptive, growth-minded workforce
that is critical to thriving in an environment of
constant disruption.38
27
People remain
at the core of a
business’s success.
Generative AI can help unleash the power of a combined human
with machine workforce. As we’ve long seen, it is humans and
machines, not humans or machines. This concept is in line with
the “Age of With™,” Deloitte’s philosophy that human-machine
partnerships will not only help automate and coordinate our
lives, but also transform how organizations find talent, manage
teams, deliver products and services, and support professional
development.39 We’ve long since said, it’s “humans with
machines” and not humans or machines that will transcend
leading organizations.40
28
PART 3
Executive strategies to
prepare organizations
for change
29
PART 3 | Executive strategies to prepare organizations for change
Leading in a Generative AI era

In the world of Generative AI disruption, the role of leadership transcends
traditional management. Leaders must seize the reins, steering their
organizations with clear vision and strategic wisdom. It isn’t necessary for
executives to be Generative AI experts—what is important is to create and
manage by a framework that focuses on and supports leadership’s vital role
in guiding Generative AI-induced changes. In this framework, leadership
must consider the following:
Visibly commit to Champion the benefits Openly address Foster a safe environment for Implement guidelines & Promote responsible use of
Generative AI strategy of Generative AI concerns & resistance experimentation & learning governance for Generative AI usage Generative AI
Visible commitment to Generative It’s up to executives to take the lead Resistance to change is natural, Leaders must lead by example in The responsible use of Generative Ethical considerations must be
AI's strategy is not just a signal of in illustrating the transformative and Generative AI is no exception. creating an environment where AI requires clear guidelines and at the forefront of Generative AI
approval; it's a beacon of direction. impact of Generative AI on Leaders need to address concerns innovation and experimentation governance. Leaders must define when deployment. Executives must lead
Leaders must not only acknowledge the organization. This includes head-on, engage in open dialogues, with Generative AI are encouraged. and how Generative AI should be used initiatives to educate and enforce
the power of Generative AI, but also highlighting success stories, real- and break down barriers of fear or They must recognize that mistakes within the organization and establish responsible use of Generative AI,
actively promote and integrate it world applications, and the tangible misunderstanding. Their openness are not failures but valuable learning protocols, ensuring that Generative ensuring compliance with laws and
into the organizational fabric. They benefits that Generative AI brings. not only builds trust but aligns experiences. A culture that celebrates AI is not being used ad hoc, but with alignment with the organization's
must show that Generative AI is not a Their advocacy will create enthusiasm the entire organization with the exploration and learning accelerates organizational support. Leadership in values and societal norms.
fleeting trend but a fundamental part and drive engagement at all levels. Generative AI mission. Generative AI adoption and mastery. this area protects both the integrity of
of the future strategy. the organization and the ethical use of
Generative AI.
30
Barriers to readiness
82%
Challenges are:
managing AI-related
risk, lack of executive
commitment, and lack
Many organizations, from senior leadership Organizations can fuel this optimism by of maintenance and Interviewed leaders say:
to frontline workers, haven't yet embraced promoting cross-organizational collaboration
post-launch support
50%
Generative AI's potential capabilities, let and establishing an AI center of excellence. AI increases job satisfaction
alone AI, leading to a noticeable "readiness and enhances performance.
gap." The lack of understanding and Compared to the slower adoptions of
effective use of Generative AI also poses a technologies like PCs or mobile devices in
challenge. And so does a lack of Generative the past, Generative AI's rapid rise is distinct.
AI-related skills in the workforce. Remember, one AI chatbot had a faster
adoption rate than either Instagram or TikTok
Deloitte's State of AI report (5th Edition) in the early days of its launch.44 Now, there are
sheds light on the difficulties organizations face several AI chatbots alternatives available to the
when integrating AI.41 Among the challenges is public. Generative AI’s rapid rise means
the uncertainty around the skills needed for the that organizations need to act now and
future, making it challenging for organizations to prepare so they can fully benefit from
plan. Legacy operational structures don't always the technology. Leaders must shift from
support the dynamic needs of AI, hindering being mere observers to active participants,
effective collaboration. recognizing Generative AI's potential and
Furthermore, these barriers present hurdles to ensuring their organizations are well-equipped
merging human skills with AI capabilities. The for this new phase. It’s critically important for
roots of this gap are complex, ranging from leaders to fully understand how to prepare
complacency, difficulty accepting change, ethical their employees for this new world. Ultimately,
and governance concerns, and a reluctance to Generative AI could create a more profound,
experiment with novel technologies too soon. and rewarding, relationship between humans
These challenges could stem from the inherent and technology, even more than the cloud, the
fear of the unknown (regulations, etc.), an smartphone, and the internet have done.
inclination to maintain the status quo, or simply Technology change is not new, however, this
a misunderstanding about the potential of AI. In transformation is particularly demanding
the report, 50% of surveyed leaders cite the top because of its far-reaching impact on
challenges as: managing AI-related risk, lack of the workforce at large. The challenge
executive commitment, and lack of maintenance becomes how to embrace the benefits this
and post-launch support.42 On the positive side, technology brings while preserving and
there is cultural optimism: 82% say AI increases enhancing our human potential.
job satisfaction and enhances performance.43
31 3
The path forward:

Embrace new fundamentals
in an AI-enabled world
As we stand on the precipice To navigate this uncharted territory,
of a new era, defined by the executives must recalibrate their
augmentation of human intelligence approach. This guide lays out three
with Generative AI, the role of fundamental pillars for the journey:
leadership has never been more
crucial. The transformative wave of
such an invention is not just about
technological prowess but about Adopt a Co-create to Prioritize
reshaping the very nature of how researcher's redefine roles human
we work, think, and innovate. mindset and harness outcomes
to deeply the collective to ensure that
understand and potential of our AI-driven
experiment with humans and AI future is not just
Generative AI efficient, but also
human-centered
The onus is on leaders to steer their

organizations with vision, adaptability,
and a deep commitment to human-
centric progress.
32
Adopt a researcher's mindset for
1
human-Generative AI integration
Hypothesis
formation
5 2
In the rapidly evolving landscape of Generative AI, traditional paradigms of work are
being challenged. Leaders, now more than ever, must adopt a researcher's mindset,
treating the integration of Generative AI not as a mere technological upgrade, but
as an organization-wide experiment. This scientific method approach is pivotal to
understanding and harnessing Generative AI’s transformative potential. The sheer Strategy Data collection
refinement and analysis
scale of these transformations makes this experimental approach a crucial beginning. Five steps to
The introduction of such advanced AI can profoundly alter work dynamics, reshaping Generative AI
the cultural fabric of an organization. It's not merely about communication and integration
training, but about nurturing the right cultural conditions and behaviors. The increasing
4 3
accessibility and affordability of Generative AI tools mean that organizations of all sizes
can leverage its power, leading to a broader spectrum of adoption.
By adopting the researcher's mindset, leaders can help ensure that the
integration of Generative AI is strategic, human-centric, and adaptable.
It's not just about automating tasks; it's about reimagining the very essence Iterative Broad
of work. testing and organizational
feedback experimentation
33
1
Hypothesis
2 1 2 3 4 5
formation
5 Strategy
refinement
Generative AI
integration
Data collection
and analysis
Hypothesis formation
Today's decisions about Generative
Data collection
and analysis
Broad organizational
experimentation
Iterative testing
and feedback
Strategy refinement
After collecting data and feedback,
4 3
AI investments are not mere Researchers rely on data to validate Training and reskilling will play In the research world, experiments researchers will draw conclusions
Iterative
testing and
Broad
organizational
technological choices; they are or refute their hypothesis. Such data a pivotal role in preparing the are rarely perfect the first time and refine their hypothesis. The
feedback experimentation
determinants of an organization's collection involves a deep dive into workforce for Generative AI. around. The process usually experimental Generative AI approach
human capital strategy, and they every department, understanding Organizations should strive for a goes: Fail. Learn fast. Examine the is no different. Generative AI
carry societal impacts. Individual the nuances of each role, and balance between technical training, shortfall via constructive feedback strategies must adapt to an ever-
careers, and indeed the future of discerning the potential impacts which equips employees to work mechanisms and iterate. The evolving AI landscape, ensuring
work itself, are contingent upon these of Generative AI. A robust skills effectively with Generative AI, and integration of Generative AI they remain aligned with the
strategic choices. They can catalyze framework can support this development of inherently human will involve trial and error and organization's purpose.
a spectrum of futures, varying process by identifying current skills skills, such as emotional intelligence, require an environment where
Adjusting skillsets and re-designing
dramatically from one organization gaps, forecasting future needs, leadership, and strategic thinking. innovation and experimentation
processes to accommodate the
to another. Just as a researcher and monitoring the progress of The goal is to leverage a mix of are encouraged. Mistakes are
best machines have to offer is no
begins with a hypothesis, reskilling efforts. Data can be utilized internal and external training not failures, but valuable learning
small feat for any organization.
leaders must start by asking to understand which skills will be resources, mentorship programs, opportunities. Safe spaces are
Unlike traditional tools, AI
critical questions about how automated, which will be augmented, and hands-on Generative AI projects needed where employees can play
continually adapts and evolves,
their companies might make and which new skills will emerge. This to ensure the workforce is well- and experiment with Generative AI.
often transcending set scopes and
the transition. What roles will data can inform targeted reskilling equipped for the future. Giving Organizations must create
timelines. This dynamic evolution
humans play once Generative and upskilling initiatives, ensuring employees safe spaces to practice channels where employees can
means that while there's significant
AI is enabled? How can we ensure the workforce is prepared for the with Generative AI can also help voice their experiences, concerns,
bottom-up demand for Generative
that our workers understand that AI Generative AI transition. them learn. and suggestions regarding
AI, and the tools might seem intuitive,
is here to complement, not replace Generative AI integration.
However, many organizations lack it still requires mastery. Achieving
them? How does our Generative AI A skills-based learning and
visibility into the skills they have, and Such feedback is invaluable, providing fluency is crucial for maximizing
strategy align with our overarching development approach can
the skills they will need to achieve real-time insights that can shape the their potential.
organizational purpose? And how address skill gaps and opportunities
business outcomes. Conducting organization's AI strategy. A culture
can it positively impact performance? most relevant to specific domains
skills assessments improves that celebrates exploration and
These questions form the foundation of work. Workers who are trained
visibility and can inform diagnostic learning will accelerate the adoption
of experiments, guiding the direction in the concepts and applications of
conversations around where the and mastery of Generative AI.
of the integration process. Generative AI, as well as supported to
organization should take its next
drive adaptive approaches to work,
steps on the skills journey.
will be well positioned to identify and
implement opportunities to augment
their work with Generative AI.
34
Design an imperative for Educate to empower

collaboration and experimentation
Co-create to redefine roles

A significant knowledge gap exists among
To begin, organizations must involve a broad employees in understanding what AI truly is
swath of people from a variety of jobs in a and what it can achieve. Organizations should
and harness human potential

collaboration-centric approach that draws invest in AI literacy programs, ensuring that all
people in and makes them part of the process. employees, irrespective of their role, have a
Such broad organizational engagement not only foundational understanding of AI's capabilities
provides insights into real-world applications and and implications. This step isn't about creating
In this transformative era, every member of the organization plays a potential challenges, but also fosters a culture of technical AI experts but about fostering an AI-
crucial role, each contributing unique insights, expertise, and creativity. inclusivity and innovation. By democratizing the fluent workforce that can identify opportunities
conversation around Generative AI, leaders can and challenges brought about by AI and can
The goal is to shape a future where humans handles specific tasks, organizations can free ensure that the entire organization is on board, effectively use it across their work. Because
and AI don't just coexist but actively collaborate up humans to focus on areas where they excel, ready to experiment, innovate, and adapt. of the fast-changing pace of AI, it won’t be a
and co-create. Organizations must set a solid leading to better outcomes and innovations. one-and-done training scenario. Organizations
In Singapore, that’s exactly what’s happening. In
foundation for innovation and share in defining must foster a culture of continuous learning,
The integration of AI into the workforce is not late July 2023, a coalition of digital government
how Generative AI impacts workers’ roles, using ensuring that employees are equipped to
a unilateral decision made in boardrooms agencies launched a joint initiative in partnership
the best humans and machines have to offer. adapt to the changing dynamics of their roles
but a collaborative endeavor that involves with Google Cloud to drive Generative AI
Address fears and uncertainties: every stakeholder. The term "co-create" and the broader industry. This involves regular
capabilities in both the public and private
Work should get better, not worse! encapsulates this spirit of collective innovation, training updates, mentorship programs, and a
sectors.45 It’s a whole-of-society approach
emphasizing the need to work alongside commitment to staying abreast of the latest
The introduction of Generative AI has to increasing Generative AI’s capabilities and
employees to harness the potential of AI. This in AI.
understandably sparked concerns about job includes “innovation sandboxes” and mandatory
democratization around introducing Generative workshops to rapidly train people in AI and The journey of integrating Generative AI
displacement. However, the narrative needs
AI into the workforce dovetails with broad bring Generative AI prototypes to production. is not a solitary path but a collaborative
to shift from replacement to enhancement.
organizational engagement, leading to better The Singapore initiative goes far beyond expedition. It's about co-creating the future
Generative AI should be viewed as a tool that
experimentation and adaptation. consumer-facing chatbots—it will be deployed of work, where AI complements human efforts
enhances human capabilities rather than
replacing them. While AI can handle data-heavy as a transformative “point solution” to raise for better outcomes. By involving the workforce
The bottom line? It’s important to examine how
tasks or repetitive processes, human skills like productivity that will ultimately deliver new in this journey, organizations can help ensure a
Generative AI could impact the tasks within
creativity, empathy, and complex problem- value to citizens.46 They are trying to create an smoother transition, greater buy-in, and a future
every department within the organization.
solving remain irreplaceable. By involving innovative AI-first culture that fosters innovation. where the sum of human and AI potential is
It’s even more important to focus on what
employees in the AI integration process, humans want and like to do to maximize greater than its individual parts.
Organizations should engage employees
leaders can demystify AI, dispelling fears and job fulfillment and performance. in broad conversations about what the
highlighting its potential to augment human Employees should be part of the process. possibilities are and how it could help
capabilities. By designing workflows where AI support their jobs. Once use cases are
established, they should be prioritized from high-
to low-level value and from quick and easy to
implement, to longer, more complicated efforts.
35
Prioritize human outcomes:

Beyond metrics
and efficiency
As AI automates routine tasks, there's an opportunity
to elevate the human role in the workplace. Employees
can transition from repeatable tasks and engage in more
meaningful, value-driven work.
Which would contact center customer service While operational efficiency is crucial, the true
agents rather be doing: administrative success of Generative AI integration lies in its
tasks such as inputting customer data into impact on human outcomes. This shift is not
databases, responding to basic customer just about enhancing organizational efficiency,
inquiries, and generating reports, or but also about ensuring that the workforce
spending more time in one-to-one customer finds meaning, value, and growth in their roles.
interactions? Generative AI can effectively There’s a growing acknowledgment of the
liberate humans from the rote drudgery importance of human-centricity at work:
of administrative tasks. Fewer call center 79% of business executives agree that the
employees may be needed, and organizations purpose of the organization should be to create
may be able to shift people in those roles to value for workers as human beings, as well as
other high-impact positions that can provide for shareholders and society at large, and
them with better opportunities and result in 66% are facing increased pressure to show
more value to the organization. It's not just their commitment to doing so, moving from
about automating tasks but about reimagining rhetoric to results.47
roles to align with future requirements.
36
Build a resilient and potentially diversifying career paths into AI

adaptive workforce ethics, data science, and management roles.
The integration of Generative AI will inevitably The transition to re-defined roles is not without
reshape traditional roles. Careful consideration its pitfalls. While automation may improve job
of potential job displacement as required satisfaction by eliminating repetitive tasks, the
skillsets shift is important when redefining work. incessant need for upskilling and adaptability
Workers will need to adapt. Take a software can exert a toll on human resources personnel
developer as an example. While Generative AI and employees alike. Social skills and
holds promise for automating aspects such as collaborative aptitude will become premium
basic code development, real-time customer attributes in this new work culture, balancing
updates, system architecture planning, and the scales between technological efficiency
even routine tasks within software lifecycle and human resilience.
management, it won’t automate everything
As with any technological revolution, work
that developers do. Tasks that involve a high
will change and organizations that focus on
degree of human judgment, such as supervision
upskilling and reskilling to create new value
and team management, or complex decision-
will have a more effective long-term strategy.
making such as data-strategy consultations,
Organizations must prioritize building a
remain outside Generative AI's current purview.
workforce that's not just technically skilled
These elements not only require emotional
but also resilient, adaptive, and ready for and the desired outcomes. Why? New In a recent survey by Deloitte, organizations that
intelligence, but also ethical discernment,
continuous learning. technologies and automation often take over are skills-based pioneers are achieving better
making them less suited to automation.
tasks. Instead of reassembling remaining business results than those with jobs-based
A resilient workforce is one that has clear
As the developmental landscape shifts, so tasks into newly reshaped jobs, top practices.50 This finding indicates that those
expectations, understands its role in the bigger
will the focus of developers—from routine organizations would prefer to organize who’ve adopted skills-based approaches to
picture, and is empowered with the autonomy
coding to more strategic oversight roles work to enable people to continuously significant extents are building organizational
to manage their tasks.
such as system design and architecture. The flex as needed.49 Such an approach not models that better align to their organizations’
realignment won't be just vertical, it will also The Generative AI-driven world demands only leverages the inherent strengths of a needs—and workers’ expectations. The
be lateral, encouraging more interdisciplinary flexibility and scalability. Sixty-one percent of diverse workforce but also helps ensure the importance of worker satisfaction in this
collaboration with Quality Assurance, Product business executives say new technologies such organization is primed for future changes. In process cannot be undermined.
Management, and DevOps as AI takes on as automation and artificial intelligence (AI) this new paradigm, the organization's design
After all, when asked what makes a great
more mundane tasks. This opportunity leaves that require new skills will be a primary driver is centered around dynamic capabilities and
company, most leaders respond that it’s the
developers free to engage in complex problem- of their organization adopting a skills-based targeted outcomes rather than static roles,
people. Rarely do they mention it was the
solving and high-level decision-making. As for approach.48 Forward-thinking organizations ensuring sustained relevance and agility.
invention or the machine. There’s always human
career development, the automation of more are now eschewing rigid job titles in favor of
prowess behind it.
elementary tasks makes upskilling imperative, assembling teams based on skills, capabilities,
37
Creating a human-centered AI-augmented organization:

Measure sustainable performance In a Generative AI era where people are
anxious about job elimination, it’s essential
A checklist for getting started
Recognizing technology's potential to enhance
to prioritize human outcomes like well-being, Hypotheses Broad conversations
productivity, it's vital to reassess what
job satisfaction, personal growth, and skills • Define clear questions about AI's role. • Engage diverse teams in AI
"productivity" means. Traditional metrics like
development. Organizations should consider • Align AI strategy with organizational goals. strategy discussions.
hours worked and revenue per employee,
shifting from short-term productivity metrics • Brainstorm transformative AI solutions.
born from the Industrial Revolution, suited an Data analysis
to sustainable performance indicators. Human metrics
era of mass production. As we transition into a • Identify tasks best suited for humans.
Such evaluation indicators involve examining
Generative AI era, there's an anomaly: humans • Determine tasks for Generative AI • Prioritize well-being and job satisfaction
both tangible outputs and intangible
can work smarter instead of harder.51 optimization. metrics.
contributions, such as innovative solutions,
Iterative testing • Move beyond traditional output-
As organizations begin to embed Generative interpersonal relationships, and organizational
focused metrics.
AI technology into human workflows, they culture impact. • Foster a culture of experimentation.
need to reconsider productivity and instead Symbiotic workflows
• Learn and adapt from trial and error.
• Design workflows where AI and
measure human performance, emphasizing The future of work of Generative AI Feedback mechanisms
humans work in tandem.
both business and human outcomes. But
• Establish channels for employee feedback.
business outcomes alone are not enough to requires a shift from merely quantifying Resilient workforce
• Continuously refine AI integration based
create measurable impact. Human outcomes
should be part of the equation. We call
the employee to quantifying activity on feedback.
• Champion continuous learning
and adaptability.
Clear communication
this human sustainability;52 the goals and across the organization, unlocking new • Prepare teams for the evolving
objectives that help an organization’s people • Reduce concerns. AI landscape.
thrive physically, emotionally, financially,
value for all stakeholders. This human- • Promote AI’s role in enhancing,
and professionally. centric approach, underpinned by not replacing, jobs.
AI literacy
responsible data use and shared value • Promote Generative AI as a tool to
creation, promises a more meaningful augment human capabilities.
• Roll out foundational AI training for all staff.
and prosperous work environment for Innovation sandboxes
individuals, teams, and society at large. • Create environments for hands-on AI
experimentation.
38
Generative AI is a human
capital story every bit as much
as a technical advancement
story. Humans create technical
advancement to do things in a
better way. Generative AI is no
different, but it’s not perfect.
Deliberate, thoughtful, and ethical
steps should be taken to ensure
that business, employee, and
societal impacts are carefully
considered. While we don’t know
exactly where the technology is
poised to take us, we do know that
Generative AI will reshape work as
we understand it today. Human
capital is an organization’s
most important capital.
39
Generative AI and the future of work
Authors Endnotes
1 Rachel Gordon, “Generative AI Imagines New 21 Audrey Schomer, “Entertainment Industry has 36 Ibid. Results are defined as 11 business and
Protein Structures,” MIT News. July 12, 2023. High Anxiety about Generative AI: Survey,” workforce outcomes: meeting or exceeding
If you'd like to learn more about how to prepare your organization 2 Taylor Kuyendall and Kip Keen, “Power of AI: Variety. July 6, 2023. financial targets; anticipating change and
AI’s Big Promises Start To Deliver For Miners 22 Ibid. responding effectively and efficiently;
for a Generative AI era, please reach out. Adopting New Tech,” S&P Global Commodity 23 Audrey Schomer, “What Writers and Studios innovating; achieving high levels of customer
Insights. October 23, 2023. Must Iron Out to Settle on AI,” Variety. satisfaction; positively impacting society and
3 Andrew Swart and Don Duval, “Future of Mining May 11, 2023. communities served; improving processes
with AI: Building the First Steps towards an 24 Ryan Craig, “How ChatGPT Will Raise the Bar to maximize efficiency; being a great
Insight-driven Organization,” Deloitte for Millions of Entry-level Jobs,” Fast Company. place to grow and develop; placing talent
and Norcat. May 18, 2023. effectively; providing workers with a positive
4 Nick Paul Taylor. “Generative AI Correctly workforce experience; providing an inclusive
25 Brian Eastwood, “Workers with Less Experience
Diagnoses 39% of Complex, Challenging Gain the Most from Generative AI,” MIT
environment; and retaining high performers.
Medical Cases,” LabPulse.com. June 20, 2023 Management/Sloan School. June 26, 2023. 37 Lucas Mearian, “The Most In-Demand AI Skills
5 Beena Ammanath et al, “Proactive Risk – and How Companies Want To Use Them,”
26 Ibid.
Management in Generative AI,” Deloitte AI Computerworld. August 23, 2023.
27 Ibid.
Institute. 2023. 38 John Hagel Ill, John Seely Brown, and Maggie
28 Ibid. Wooll, “Skills Change, But Capabilities Endure,”
6 Krystal Hu,“ChatGPT Sets Record for Fastest-
growing User Base – Analyst Note,” Reuters. 29 Ibid. Deloitte Insights. August 30, 2019.
February 2, 2023. 30 Richa Naidu, Martin Coulter and Jason Lange, 39 Prashanath Kaddi, Saurabh Kumar, and
Nicole Scoble-Williams Diane Sinti Jodi Baker Calamai Dr. Björn Bringmann
7 Kyle Wiggers, “Shutterstock Expands Deal with “ChatGPT Fever Spreads to US Workplace, Deepak Sidha, “The ‘Age of WithTM’”: Humans
Global Future of Work Leader Global Work re-Design, US Lead, Portfolio Managing Partner, Deloitte AI Institute, Sounding Alarm For Some,” Reuters. and Machines, Future of Artificial Intelligence,”
OpenAI to Build Generative AI Tools,” Tech
nscoble-williams@tohmatsu.co.jp Managing Director Human Capital, Canada Germany Lead Crunch. July 11, 2023. August 11, 2023. Deloitte and the Confederation of Indian
dsinti@deloitte.com jobaker@deloitte.ca bbringmann@deloitte.de 8 Gartner, “Gartner Experts Answer the Top 31 Erica Volini et al, "Work re-Architected," Industry. 2021.
Generative AI Questions for your Enterprise,” Deloitte. 2021. 40 Jeff Schwartz, Steve Hatfield, and Beena
2023. 32 Helen Reid, “IKEA Bets on Remoter Interior Ammanath, “Unleashing Talent in the Age of
Design as AI Changes Sales Strategy,” Reuters. WithTM,” Deloitte AI Institute, 2019.
9 Ibid.
June 13, 2023. 41 Nitin Mittal, Irfan Saif, and Beena Ammanath,
10 Ibid.
33 Ibid. “Key Findings from the State of AI in the
11 Kate Schmidt et al, "The Generative AI Dossier," Enterprise, 5th Edition," Deloitte. October 2022.
Deloitte AI Institute. 2023. 34 Sue Cantrell et al, “The Skills-Based
Organization: A New Operating Model for 42 Ibid.
12 Beena Ammanath et al, "Generative AI Is All the
Work and the Workforce,” Deloitte Insights. 43 Ibid.
Rage," Deloitte AI Institute. 2023.
September 8, 2022. 44 Andrew R. Chow and Billy Perrigo, "The AI
13 Beena Ammanath et al, "Proactive Risk
35 Ibid. Skills-based organizations ratio reflects Arms Race Is Changing Everything,” Time.
Management in Generative AI."
the combined weighted ratios of the HR February 17, 2023.
14 Nathan Bergin et al, “Dichotomies: Navigating
executive survey item “Our organization’s 45 Smart Nation Singapore, " Launch of the
Towards a Better Future,” Generative AI: Issue
business and HR executives are aligned on Artificial Intelligence Government Cloud
002, Deloitte. 2023.
Laura Shact Greg Vert Tara Murphy Sue Cantrell 15 Jan Hatzius et al, "The Potentially Large Effects
the importance of skills in making decisions Cluster." May 31, 2023.
about work,” and the worker survey items 46 Smart Nation Singapore, "Launch of the AI
Human Implications of Human Implications of Human Implications of Workforce Strategies, of Artificial Intelligence," Global Economics
“My employer treats workers as whole, Trailblazers Initiative." July 24, 2023.
Generative AI, US Lead Generative AI, US Lead Generative AI, Canada Lead Vice President of Products, US Analyst, Goldman Sachs. March 26, 2023.
unique individuals who can each offer
lshact@deloitte.com gvert@deloitte.com tmurphy@deloitte.ca scantrell@deloitte.com 47 Sue Cantrell et al.
16 Ibid. unique contributions and a portfolio of
48 Ibid.
17 Tyna Eloundou, Sam Manning, Pamela Mishkin, skills to the organization,” “My organization
Daniel Rock, “GPTs are GPTs: An Early Look at supports me in pursuing opportunities to 49 Ibid.
Contributors
the Labor Market Impact Potential of Large create value throught activities that are 50 Ibid.
Language Models,” OpenAI. March 17, 2023. outside of the direct scope of my job,” and 51 Steve Hatfield, Sue Cantrell, and Corrie
18 Ibid. “My organization makes it easy to apply my Commisso, “Outcomes Over Outputs: Why
19 Mark McNeilly, “Will Generative AI skills where they are most needed.” Productivity is No Longer the Metric that
Disproportionately Affect the Jobs of Women?” Matters Most,” Deloitte Insights. July 19, 2023.
A special thanks to these Deloitte colleagues for their work in this effort. Kenan Institute of Private Enterprise. 52 Sue Cantrell et al, “Advancing the Human
April 18, 2023. Element of Sustainability,” Deloitte Insights.
Andrew McMillan | Philipp Joshua Wendland | Ivana Vucenovic | Julie Hiipakka January 9, 2023.
20 Ibid.
40
Global Deloitte
AI Institute Leaders
Beena Ammanath Wessel Oosthuizen Dr. Kellie Nuttall Jefferson Denti Audrey Ancion Jan Hejtmanek Roman Fan Richard Eudes, PhD
Global Deloitte AI Institute, Lead Deloitte AI Institute Africa, Lead Global AI & Data Australia, Lead Deloitte AI Institute Brazil, Lead Deloitte AI Institute Canada, Deloitte AI Institute Deloitte AI Institute China, Deloitte AI Institute France, Lead
bammanath@deloitte.com weoosthuizen@deloitte.co.za knuttall@deloitte.com.au consultoria@deloitte.com Lead Central Europe, Lead Lead reudes@deloitte.fr
aancion@deloitte.ca jhejtmanek@deloittece.com rfan@deloitte.com.cn
Dr. Björn Bringmann Prashanth Kaddi Masaya Mori Nicholas Griedlich Naser Bakhshi Tiago Durao Sulabh Soral Kate Schmidt
Deloitte AI Institute Germany, Lead Deloitte AI Institute India, Lead Deloitte AI Institute Japan, Lead Deloitte AI Institute Deloitte AI Institute Deloitte AI Institute Deloitte AI Institute Deloitte AI Institute
bbringmann@deloitte.de kaddip@deloitte.com mmori@deloitte.com.jp Luxembourg, Lead Netherlands, Lead Portugal, Lead United Kingdom, Lead United States, Lead
ngriedlich@deloitte.lu nbakhshi@deloitte.nl tdurao@deloitte.pt ssoral@deloitte.com.uk kschmidt@deloitte.com
41
Human Capital &

Future of Work Leaders
Art Mazor Nicole Scoble- Chloe Domergue Stephen Harrington Jorge Ponga
Global Williams US Canada South America
Human Capital Lead Global and Asia Pacific Future of Work Lead Future of Work Lead Future of Work Lead
amazor@deloitte.com Future of Work Lead cdomergue@deloitte.com stharrington@deloitte.ca jponga@deloittemx.com
Deloitte Tohmatsu
Consulting LLC
nscoble-williams@tohmatsu.co.jp
Sibongile Mogale Bruce Jennings Anna Nowshad Gildas Poirel Marta Isarria Vidal
Africa North and South Europe Central Europe France Spain
Future of Work Lead Future of Work Lead Future of Work Lead Future of Work Lead Future of Work Lead
smogale@deloitte.co.za brjennings@deloitte.co.uk anowshad@deloitte.at gpoirel@deloitte.fr misarriavidal@deloitte.es
42
This publication contains general information only and Deloitte is not, by means of this publication, rendering
accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not
a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that
may affect your business. Before making any decision or taking any action that may affect your business, you should
consult a qualified professional advisor.
Deloitte shall not be responsible for any loss sustained by any person who relies on this publication.
About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee
(“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally
separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. In
the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate
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43 © 2023 Deloitte Development LLC. All rights reserved.

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Generative AI and

the future of work

PART 1 | What is Generative AI and why is it disrupting work?

PART 3 | Executive strategies to prepare organizations

About the Deloitte AI Institute

The Deloitte AI Institute helps and experience in artificial intelligence

AI took a major leap with Generative AI and Its impact on humans

The great skills shift

Understanding the dynamic interaction

We have long said it’s “humans with machines”

Did Generative AI create that advertising image you’re looking at?

In the case of the latter, yes, Generative AI can

This technology operates through a deep learning process, in

Image produced by Generative AI. The prompt we used was:

Generative AI has experienced accelerated

Why Generative AI Potential Generative AI innovations by industry11

will impact work ENERGY,

can create original content. FINANCIAL

Generate customer signatures to Generate synthetic data to

These models can sometimes produce

What does this mean

Part of seizing opportunities involves preparing the organization for multiple

POSSIBLE PROBABLE IDYLLIC

As we navigate these and other diverse scenarios, the need

With the potential for widespread integration of Generative AI,

to businesses, it may leave novice copywriters

Generative AI can improve efficiency,

So, what is “work?”

The workforce lightbulb moment: Generative AI will have varied impacts on

This is a key to success—technology is not

Understanding the dynamic

There’s quite a bit of work to do.

Roles such as plumbers, electricians, or chefs fall

How to break down a job environments that require human interaction.

Data analyst jobs Which jobs Non-routine cognitive jobs

Examine the four types of impacts

1 Use the right prompts repetitive content like answers

2 Verify the results for accuracy questions without human assistance.

4 Edit Generative AI-produced content

Sample Machine-only Humans with machines Human-only Human-only

Then break down those jobs

• Automated tasks that machines do best

ESTIMATED GENERATIVE AI IMPACT

Augmented skills Augmented skills Augmented skills

solutions for safety and environmental concerns.

See how IKEA is capitalizing

Skills-based organizations see results

Swedish furniture retailer IKEA is doing just that.

The great skills shift

The interplay between Generative AI and

Leading in a Generative AI era

The path forward:

The onus is on leaders to steer their

Adopt a researcher's mindset for

Design an imperative for Educate to empower

Co-create to redefine roles

and harness human potential

Prioritize human outcomes:

Build a resilient and potentially diversifying career paths into AI

Creating a human-centered AI-augmented organization:

Human Capital &

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