92% of IT jobs transformed, 50% of applicants seek AI help, and Ikea's drone workforce

A Note from Malcolm

Labor vs. Capital  

It’s a story as old as capitalism itself, and the relationship between Labor and Capital  is renegotiated each time a new technology arrives.  Such was the case with the steam engine, the assembly line, the container ship, computing and now AI.  

Sparks are flying between employees and management with AI, and the issues fall into four buckets:

1. Management using AI to automate jobs away

   • Tech giants are executing the "AI two-step": layoffs paired with AI investments. Recent examples include Cisco, Dell, and Intel. This trend is likely to continue as markets reward such moves—last week Cisco's stock jumped 7% after announcing 6,000 job cuts and new AI investments.

2. Remote work policies

   • The COVID pandemic is gone, but remote work is here to stay.  For example, the tech industry has stabilized at a 40% remote workforce. However, the pressure for back-to-work initiatives has not abated; CEOs find those empty HQs to be an embarrassment, and City Hall wants its tax revenues.  But labor remains steadfast, and rapidly advancing AI tools make remote work all the more effective and efficient.  

3. AI skills and tools 

   • Employees want to be AI-enabled and are pushing for adoption of role-based AI tools.  But they are growing frustrated with the slow pace of change from their employers (think of central IT and Legal as bottlenecks).  It’s leading to a lot of “renegade” AI usage.  

4. AI in the hiring and promotion process.  

   • Large companies are turning to AI-based automation across HR, particularly in hiring and promotion processes.  While this drives efficiencies, it’s incredibly alienating to applicants who are interviewed by AI avatars, or long-term employees whose potential promotion is determined by a bot that reviews all of their emails.  

Technology changes super-fast.  People continue to behave (often unconsciously) in ways that ensured survival on the savannah.  If history is a guide, this new negotiation between Labor and Capital over AI will be lengthy and increasingly contentious.  

With that lens, here are some highlights from the past week at the intersection of enterprise AI and work: