The future of the human-centric workplace

Insights

• Given hybrid working is here to stay, digital and AI technologies will become the main mode of employee engagement for organizations.
• However, organizations need to get ready to implement AI successfully and combat the challenges they face with it to use the technology optimally.
• It will require creating the technology foundation, culture, and solid learning programs.

The Covid pandemic initially created the need for fully remote working. However, that soon evolved into a hybrid model — remote and in-office — which companies have struggled to refine and optimize. Although some organizations are demanding employees work in the office five days a week, the hybrid model is here to stay and should be, according to research.

Hybrid work is a popular choice among employees globally, with 85% saying they are more satisfied with this way of working. In addition, PwC research found that hybrid workers are the most likely group to say they are engaged with their work (74%) and have a sense of belonging (76%), compared to fully remote (63% and 68%, respectively) and fully on-site (72% and 74%, respectively) employees. Hybrid employees also feel the most appropriately compensated on average, while full-time on-site employees feel the least. Those working remotely fall in the middle.

With hybrid work now mainstream — and often expected by employees — a large proportion of employee engagement is happening digitally. Infosys’s The Future of Work 2023 research shows that employers are increasing their use of digital experience management tools, workplace analytics, and service desk and IT service management tools. This digital foundation opens the path for artificial intelligence (AI) as an engagement tool that can potentially improve employees’ day-to-day lives. AI can automate mundane tasks like writing emails, summarizing meeting minutes, and managing schedules. Chatbots can help employees solve simple tech issues or process queries. But it’s not all smooth sailing, as CXOs face the challenges of new technology implementation and reskilling.

AI implementation challenges

Research shows that many chief human resources officers are planning to fund new investments in AI and employee experience technology. However, their foundational technology is often a poor fit. Infosys created a framework that identifies and assesses company readiness for enterprise AI on five dimensions: talent, strategy, governance, data, and technology. The Enterprise AI Readiness research report found that only 2% of leaders are confident that they are ready on all five dimensions. Also, just 12% of companies are confident they are providing employees with sufficient training opportunities (Figure 1).

Figure 1. Confidence in access to AI training and expertise

Source: Infosys Knowledge Institute

Employee assessment of reskilling is more positive than that of company leaders but still not optimistic. Only 47% of employees say they moderately or strongly agree that their organization provides enough opportunities to learn new skills valuable to their career. And 30% disagree that their organization provides upskilling opportunities to existing candidates instead of hiring external candidates. These factors and concerns about forced return to office can lead to employee dissatisfaction and the risk of attrition.

Laying the groundwork for AI

It’s not enough for companies to buy the latest AI tools and assume they will be transformative. CXOs need to ensure their businesses are AI-ready before implementing new technology. The following prepare a company for success in integrating AI with employee experience:

• Companies benefit from aligning their strategic goals with the needs of their employees, including preferred work styles, technology adoption, and skills development.
• A well-planned approach to AI implementation, focused on use cases that will bring them most value, enables companies to effectively use their technology.
• A tech-supported, human-centric workplace with a positive work environment promotes AI success. Companies should enable these factors by developing a comprehensive AI strategy, establishing responsible AI governance, upskilling the workforce, preparing data infrastructure for AI, and cultivating a culture of innovation.
• Professional management training and fostering a culture of continuous learning are essential for the successful adoption of new technologies and practices within an organization. These efforts equip leaders with the skills to manage change effectively while also encouraging employees to embrace innovation and adapt to evolving workflows.

The steps to AI readiness

Although organizations feel competitive pressure to adopt AI quickly, it is essential that they carefully plan the implementation to ensure their efforts yield meaningful and sustainable results.

A strong starting point for launching AI projects is to assess how well they align with the organization’s strategic value framework. Evaluating this internally can take companies considerable time and effort. A more effective approach is to work with consulting firms that have expertise in these areas. Often, they can help companies gauge their AI readiness, pinpoint gaps, and focus efforts on areas that need the most attention, more quickly and effectively.

The success of AI implementation largely hinges on the strengths of an organization’s infrastructure and governance processes. Enterprises can collaborate with technology companies — which play the role of AI implementation partners — to evaluate hardware, applications, integrations, and other existing systems for interoperability and complexity. These partners can then recommend and implement necessary upgrades to ensure the infrastructure is optimized for AI deployment. For example, a German utilities company was looking to make the most of generative AI for its workforce. With the help of Infosys, the company developed a governance framework and established a generative AI center of excellence to streamline processes and enhance governance, training, and operations.

An AI value office ensures there’s a function dedicated to and accountable for aligning AI initiatives with business objectives and tracking them carefully. The AI value office team — comprising the CTO, business analysts, data experts, and change management specialists — provides expertise and identifies risks related to business value or compliance. The function also oversees governance, ethics, and the overall impact of AI across the organization. Infosys research found that less than 25% of companies positively rate the ability of IT and business teams to work together. An AI value office coordinates with diverse teams across the organization and helps foster cross-functional collaboration to maintain and continuously improve these practices over time.

Companies need to strengthen their strategies for employee AI training. Only 21% of respondents in Infosys’s Enterprise AI Readiness research said their employees have the requisite knowledge to adopt AI tools and techniques (Figure 2). They need to create AI skill categories to map role-specific training needs and provide learning paths to build the requisite skills. Companies would also benefit from microlearning modules, which help employees with knowledge retention, leading to better adoption of the technology.

Figure 2. Low readiness in AI knowledge

Source: Infosys Knowledge Institute

Finally, organizations should emphasize building the right culture for AI. Research has shown that 85% of employees want to know more about AI. A huge part of fostering a positive culture for AI adoption is explaining how the technology benefits employees by making them more efficient, and assuring them that their jobs are secure. This can excite employees about using AI to work better and about aligning themselves to the organization’s AI innovation vision.

Giving employees access to a repository of self-service tools is important for adoption of technology. Infosys and WongDoody designed a platform with a single interface for the tools, knowledge, and support required for employees of a Middle Eastern smart city to work effectively. Making technology human-centric empowers employees to experiment, troubleshoot challenges independently, build confidence in working with AI solutions, and walk alongside the organization on its AI journey.