In the “not-so-artificial” minds of many, there is no doubt, that artificial intelligence (AI) is changing the world of work. Yet, corporate bosses are already sensing great “labor-saving potentials” – which is nothing new under capitalism.

That said, it is also nothing new under capitalism that workers fear for their jobs whenever new technologies arrive in the hands of bosses.

The neoliberal IMF, for example, predicts that “AI will affect almost 40% of jobs around the world”. At times, such glass-ball-like predictions go wild – particularly when plugging outlandish numbers out of thin air. It is rather commonly known that,

“economists have successfully predicted

nine of the last five recessions”.

Meanwhile, technical innovations like the steam engine, the Spinning Jenny, the diesel and electric engine, IT, digitalization, and now AI have not led to mass starvation or the end of capitalism – often on the contrary to dire prophecies.

Yet, the use of AI is already a common practice in many companies. AI brings with it both opportunities and challenges. In any case, AI is widely seen as a driver of innovations creating new markets for new (read: AI) products. Not unknown to corporate scandals, management consultancy McKinsey, for example, assumes that AI can create an additional value of a whopping €10 to €20 trillion per year – another wild prediction!

This would correspond to about three to five times of Germany’s gross domestic product. Much of this will come from the simple fact that AI – like most technologies – will increase efficiency.

With the help of AI, operational processes in many areas of work can be improved. These range from the intelligent evaluation of large amounts of data to the automated processing of customer inquiries to quality controls. Many administrations are already using AI to select the correct process needed.

Beyond that, AI can quickly and accurately analyze large amounts of data to identify relevant patterns and draw insights, results, and recommendations useful to businesses. AI is already used in the field of mechanical engineering to issue predictions of the maintenance of systems.

AI can also detect when, for example, a passenger elevator might experience a failure. AI can even recognize even the smallest changes in operating times. In the field of e-commerce, it is already used to adjust the assortment of goods and tailor target marketing ever more to the individual.

In the area of customer services, virtual assistants and chatbots can improve connections to customers by providing fast and precise answers. AI can give helpful answers, for example, on product information and orders. Corporate bosses expect that the use of AI will save companies personnel, money, and time.

For example, in the area of recruiting and “onboarding” international specialists, AI can support faster integration of new recruits into companies – converting human beings into human resources.

AI-based translation tools can help to overcome language barrier and facilitate communication in multi-national teams.

In the area of HRM, chatbots can answer standard questions about company policies, work processes, and even organizational processes. AI can support e-learning by creating training models that are adaptive to individual skills, for example, of international experts. AI can also assist with formalities, visa documents, and employment contracts.

Virtually all of this can also lead to job losses. There are plenty of concerns that the introduction of AI into the world of work can lead to AI being a job killer. Others argue that this is rather unfounded.

In fact, numerous studies have shown that AI is probably more likely to create additional jobs and change existing ones than eliminating those jobs. At the same time, new job profiles, job descriptions, and job titles are also emerging.

It might no longer be the case that it takes a software engineer or an expert to train AI systems and adopt them to the specific needs of companies or industries. Activities such as “prompt engineering” – formulating the right prompts to AI for the best possible results – are more and more in demand.

Inevitably, there are ethical issues with AI as AI involves human beings. Very easily, the application of AI can lead to misinformation, discrimination, plagiarism, as well as copyright infringement when using data.

At least in Europe, there will be Europe-wide rules for the use of AI very soon. The EU’s AI rules are intended to ensure that AI systems are transparent, comprehensible, and non-discriminatory.

The EU will divide AI systems into different risk groups. In short, the higher the potential danger of an AI application, the higher the requirements to safeguard its use will be.

For example, AI that is used to manipulate or monitor human behavior will be banned in Europe. The EU’s act prohibits real-time biometric facial recognition in public areas – also known as face scanning.

At work, it is known that any changes in working arrangements often rely on the willingness of employees and trade unions. Both need to get involved in the technological change and AI. At the same time, many workers and trade unions are anxious about the potentials for change.

This is no surprise given the past experiences of trade unions and workers. It has become common for companies to use technological change to eliminate workers.

The firing of workers often occurred under the corporate euphemism of ‘restructuring’. It became so bad that workers started talking of “restructuring for the sake of restructuring”.

According to a 2024 study “Work, Workforce, Workers” by the corporate consulting company Accenture – which, after its involvement in the Enron scandal, quickly changed its name from Arthur Anderson to Accenture – it was found that six out of ten workers want more clarity from their employers about what the technology means for their future.

Self-evidently, those companies that have involved employees from the very beginning have reduced distrust in AI. As with many workplace issues – particularly on any sort of technological change – “trust” remains a key issue in the acceptance of AI.

Trust in AI can be achieved, for example, through a trade union engagement but also through employee training and regular workshops. However, all of this is nothing new.

Management experts have been talking about trust for decades. Perhaps ever since McGregor’s “The Human Side of Enterprise” (1960).

Whether with or without trust, hardly anyone can currently assess where exactly the use of generative AI is heading in the world of work.

Meanwhile, according to a study conducted by US-based employee website “Indeed.com” which involved 16,671 “professionals” from eleven countries, it was found that only 41% of Germans have a positive view of AI in the workplace, while the figure is 57% in the USA, and 75% in India.

The same study also shows a “deep skepticism” about the use of AI in German workplaces. Much anxiety might be caused by uncertainties about one’s own job security.

Indeed, 48% of Germans fear that AI could cost more jobs than it could create. At the same time, German corporate executives and their HR managers remain optimistic. Yet, their attitudes towards AI are still less positive compared to their international counterparts.

Despite the prevailing skepticism about AI in Germany, there is a relatively clear willingness to adapt to AI. An overwhelming majority of employees – a whopping 87% – say they are ready to adapt to changes and they are ready to learn the necessary skills.

Almost half of German employees – 47% – emphasize the need for further workplace training in order to be able to cope with technological change.

Interestingly, the proportion of those who believe that the required skills in their profession will change drastically in the next five years is 22% in Germany – compared to 27% globally, and 54% in, for example, India. This shows a certain reluctance in the German working population.

The study by job search engine “Indeed.com” also emphasizes the role of employers in supporting their employees through opportunities to participate in workplace education. 61% of the German participants expect their employers to support them in adapting to new technologies.

In addition, 48% of Germans believe it is a company’s responsibility to prepare its employees for the changes associated with AI.

In other words, continuing education and worker engagement remain imperative for the successful implementation of AI. Investing in the training of employees and engagement can reduce uncertainties.

It also strengthens ties with the company and thus both – workers and management – will benefit from the transformation in the long term.

These ties can further be reinforced when managers work with trade unions and with Germany’s all important works councils. A recent study on this produce three core findings:

1. Pro-Active Unions: workers’ representatives such as Germany’s works councils do not simply adapt to AI. They do not follow a reactive and defensive approach toward AI. In some cases, unions and works councils have actually pushed companies to develop strategies for the introduction of AI. These strategies tend to follow the ethics of a human-centred design for AI;
2. Engagement: secondly, German employee representatives have adopted a “process-oriented” way of working on AI. Discussions on AI in workplaces are never a “one-off event”. Instead, this is an ongoing dialogue with management and to establish work processes and committees to guide the introduction of AI;
3. Monitoring: lastly, employee representatives also monitor corporate digitalisation and the use of AI.

This makes it clear that there is a willingness and an ability to successfully meet the challenges of AI and adjacent technologies in the world of work.

Both companies and management on the one side as well as workers and trade unions on the other side, play a central role in this by providing the necessary support for the introduction of AI.

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Born on the foothills of Castle Frankenstein, Thomas Klikauer is the author of over 975 publications including a textbook on HRM.

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