Deloitte CTO Urges Shift: Balance Tech Spending with Workforce Investment
In today’s rapidly evolving technological landscape, companies face a crucial decision: how to balance technology spending with workforce investment. Bill Briggs, the Chief Technology Officer at Deloitte, emphasizes an alarming trend in corporate strategy. An overwhelming 93% of artificial intelligence (AI) budgets are allocated to technology, leaving only 7% for the people who will utilize it.
The 93-7 Imbalance in AI Investments
Briggs identifies this disparity as a serious oversight. Organizations focus on acquiring the latest technology—software, chips, and models—while neglecting the essential elements necessary for successful adoption. These include culture, training, and workflow integration.
Briggs illustrates this problem with a metaphor: companies are trying to achieve complex dishes like paella but end up with only basic ingredients. He expresses concern that existing workflows are merely being tweaked to accommodate new tools, rather than undergoing a thoughtful reimagining.
The Need for Workforce Integration
To address this imbalance, companies must rethink how they handle AI. Briggs argues for a fundamental shift that aligns human roles with increasingly advanced AI systems. This involves complex questions about liability and performance management for AI agents and robots.
- Organizations should develop HR processes specifically for AI and robotic agents.
- Consider the implications of AI behavior and accountability for generated actions.
Moreover, Briggs highlights a troubling development: despite wider access to generative AI in workplaces, actual usage has dropped by 15%. Additionally, a phenomenon known as ‘Shadow AI’ is on the rise, with 43% of workers using unapproved AI tools, thereby bypassing organizational policies.
Building Trust in AI
Research indicates that hands-on training significantly increases trust in AI deployments. Workers who engaged in training reported a 144% increase in confidence in their employer’s AI initiatives compared to those who did not receive training. Conversely, the lack of human-centric approaches leads to diminishing trust and engagement with these technologies.
Addressing Cultural Shifts and Buyer’s Remorse
Another barrier to optimized investment in AI is the fear of “buyer’s remorse.” CEOs and boards are hesitant to commit to new technologies, worrying that their investments could quickly become obsolete. This hesitation parallels the challenges of timing the stock market and may hinder companies from advancing effectively.
Briggs urges leaders to prioritize action over hesitation, stating that companies must begin implementing solutions rather than waiting for the “perfect” moment. The rise of “Physical AI” technologies is an exemplar of this urgency, where real-world applications of robotics and AI have shown tangible benefits, such as HPE experiencing a 50% increase in reporting speed post-deployment of Zora AI.
The Path Forward
In conclusion, Deloitte’s insights reveal a pressing need for corporate leadership to shift their focus. By investing in workforce integration alongside technological advancements, organizations can foster environments where AI can thrive. The message is clear: without a cultural transformation, investments in technology may lead to costly outcomes devoid of trust from the very employees they aim to assist. Companies should act decisively to close the 93-7 investment gap, ensuring a future where technology and people collaborate effectively.
