CHRO Dialogue: Q4FY24, Mumbai

Session 1: AI, Gen AI and the Future of Work

Jaspreet Bindra, Managing Director and Founder of Tech Whisperer

How will AI and GenAI impact business and society, and how must we prepare for it?⁠ ⁠How will they fundamentally change work and jobs and how do we need to reskill ourselves to confront and manage this profound change? How we can use GenAI tools to be more productive and efficient? Jaspreet Bindra  argued  that AI is more  than  just a technology or a trend; rather, it is a profound shift in how humans and machines interact. He discussed the transformative power of AI/GenAI and examined the ethics and regulatory issues they entail.

Decoding the differences between AI and GenAI…

Coined in 1956, the term ‘AI’ refers to an earlier form of technology that predates our current awareness. It was only after the emergence of ChatGPT and GenAI that AI stepped out from the shadows, despite being in wide usage for decades. AI mainly uses a deterministic approach, enabling predictions and forecasts. In contrast, GenAI leans towards probabilistic and creative processes. Unlike AI, which focuses on pattern recognition, GenAI is primarily used to generate new content. For instance, ChatGPT-powered Sora can transform text instructions to video.

… and how GenAI will revolutionise work

GenAI will have a huge bearing on the world of work and jobs. A recent Microsoft study asked respondents to imagine what jobs might look like in 2030. It revealed that people value changes that help save them time, produce high-quality work and acquire new skills faster. Key desired areas of transformation identified in the survey include:

• Saving time: Ideally, AI should help deliver top-notch work in half the usual time; enableone to master new skills twice as fast; and cut meeting times in half.

• Ending the information overboard: Many desire an end to the mental overload caused by excess information, including emails and having to recall data/content from previous meetings/emails/chats.

• Banishing busywork.

• ‘Solving search’: Automating searches for information.

• Unleashing creativity: Such as by never having to draft initial documents again, or by being able to outsource the e:x:caution of ideas to others.

 The majority of work revolves around communication and it is expected that AI and GenAI will dramatically reduce the time spent on this. Resultantly, it is likely that GenAI will impact th nature of tasks rather than the essence of work itself. According to Goldman Sachs, 7-10% of  jobs may be rendered obsolete while ~30% of roles will remain unaffected by ChatGPT/GenAI. For most workers, however, technology will have a profound bearing on the tasks they perform. New job categories are also likely to emerge but the specific nature of such roles is uncertain.

 The level of impact will vary across industries and functions, with the services sector facing a higher likelihood of disruption compared to manufacturing. Contrary to initial expectations, AI/GenAI is targeting larger and more advanced roles, exemplified by  tools  like Microsoft Copilot being able to generate presentations, emails and documents. Interestingly, the very creators of these technologies believe that their profession will be the most deeply affected, underscoring the potential for GenAI to disrupt the tech industry.

Marketing is in the cross-hairs of AI

Some of the key areas of work that AI will affect include programming, marketing and CRM. Huge, transformational opportunities exist in terms of creating targeted, personalised ads and experiences driven by user data; instant customer support via chatbots; predictive analytics for understanding customer behaviour; optimised content creation; dynamic pricing aligned with consumer demand; and automated marketing.

During the formative stages of AI/GenAI, it's crucial for CEOs and senior management to grasp the urgency and significance of this technology in shaping their companies. External interventions can aid organisations in comprehending the potential of AI and its impact on their operations. However, organisations must cultivate a supportive culture for AI integration, emphasising its role as an augmentor rather than a substitute for humans while recognising the importance of human instinct operating alongside data-driven insights.

Societal implications of AI

AI's impact extends far beyond the realm of work and will influence broader societal dynamics. The ethical considerations surrounding AI/GenAI are as crucial as the technological advancements themselves. Regulation is imperative in the tech sphere to address issues such as plagiarism, copyright infringement, bias, deep fakes, and environmental concerns.

Session 2: Building a Culture that Fuels Growth and Innovation

Rajesh Mani, Senior Vice President and Head of Asia Pacific Tech Hubs, Mastercard

Organisational culture, while seemingly straightforward, is something that is both inherently complex and unique to each business. CHROs play a pivotal role in cultivating a firm’s culture, which is essential for fostering innovation and growth amidst rapidly shifting business priorities. Rajesh Mani explored strategies for how CHROs can help adapt the organisation’s culture to evolving realities, identify key elements of a culture that supports growth and innovation, and unlock the business’ full potential. 

Mastercard's evolution in India

Mastercard’s journey in India has been marked by substantial growth over three decades, led by technological advancements. The establishment of tech centers, exemplified by the Pune centre’s exponential, growth from 200 to 6,000 employees within a decade, underscores the company’s commitment to innovation and growth. Notably, its India office contributes significantly to Mastercard’s stack of global patents, signifying how it is driving not just quantitative growth but also qualitative innovation.

Strategies to promote innovation

Mastercard’s approach to fostering innovation includes financial incentives for patent submissions, which is supported by top-level sponsorship, thus ensuring recognition for truly innovative contributions. Similarly, Zydus and Tata implement structured recognition programmes, that acknowledge and incentivise innovation across levels.

Cultivating a culture of growth and innovation

To effectively drive growth and innovation, organisations must prioritise three fundamental aspects of their culture: embracing diversity, fostering inclusion and encouraging risk-taking. Diversity hiring and more inclusive decision-making processes are instrumental in creating an environment where employees feel empowered to bring their true selves to work while actively contributing to innovation.

Supporting employee well-being and skill development

Holistic well-being initiatives, such as flex-time policies and work-from-elsewhere programmes, demonstrate a commitment to maintaining a healthy work-life balance. Additionally, investments in upskilling, facilitated by tools like Mastercard’s ‘unlocked’ platform, ensure that employees are equipped with relevant skills amidst rapid technological advancements.

Adapting to the aspirations of Gen Z

With a growing influx of Gen Z employees, organisations must align their vision with the varied aspirations of their workforce. Mastercard redefined its vision statement to reflect a commitment to societal impact, which resonates particularly with younger employees seeking purpose-driven careers.

Embedding ESG goals in the organisational culture

Mastercard has also integrated its ESG goals into compensation structures, underscoring the importance of aligning financial incentives with sustainable business practices. This approach reinforces organisational values and encourages employee accountability and engagement.