Board Members: Charting a Human-Centric AI Strategy in an Era of Hyper-Change
TL;DR:
As board members, it’s our responsibility to shape company strategy, especially in the face of AI’s rapid advancement. Inspired by Schelling AI’s article “How To Think About AI,” this piece highlights the good, bad, and ugly of AI’s impact on businesses and society. While AI offers immense potential for efficiency and innovation, it also risks displacing millions and worsening inequality if we focus only on capital efficiency. To navigate this transformation responsibly, we must adopt a human-centric approach that prioritizes workforce transition, ethical AI use, and new efficiency metrics that consider social impact. By doing so, we can chart a pragmatic path where AI benefits everyone, not just the privileged few.
Introduction:
As board members, our duty is both a privilege and a responsibility. We are entrusted with guiding our companies through strategic decisions that will determine their future success. Strategy isn’t just about maximizing profits or market share; it’s about charting a sustainable course through the complexities of today’s rapid technological change. AI is transforming the business landscape faster than ever, and with this transformation comes both immense opportunity and significant risk. It’s our job to look beyond the surface and consider the good, the bad, and the ugly when determining company strategy.
The recent article "How To Think About AI" by Schelling AI underscores the massive societal and economic changes AI is bringing. While it presents the exciting possibilities of AI — the rise of what it calls “AI Atlantis” — AI Atlantis refers to a near-future digital realm where AI dominates economic and social systems, with billions of highly skilled AI agents transforming industries and upending traditional labor markets. It envisions a world where the cost of intelligence plummets, but the societal impact is far-reaching. This AI Alantis idea raises critical questions about how these technologies will reshape human work, agency, and equity. Inspired by that piece, this article focuses on a vital yet often overlooked perspective: the human side of AI adoption. By doing so, we aim to craft a more pragmatic and responsible approach to navigating this Herculean shift.
The Role of the Board in Shaping AI Strategy:
At the heart of any company’s success is its ability to create value — not just for shareholders, but for employees, customers, and society at large. As board members, it’s our duty to examine all angles of the strategy we pursue. In the case of AI, the challenge is hyper-change — the sheer speed at which AI is advancing leaves little room for traditional, incremental adaptation.
But more than ever, we must purposefully take a step back to ask: What is the human cost of this change? How will the deployment of AI impact not just our workforce but society?
The Good: Efficiency, Innovation, and Growth
Schelling AI describes an imminent explosion of AI capabilities, leading to unprecedented efficiency and innovation across industries. AI can empower businesses to do more with less, scaling operations that were once unimaginable. For many companies, this means exponential growth driven by automation and improved decision-making.
As board members, understanding these upsides is crucial — we must ensure that our organizations are prepared to leverage AI in a way that positions them competitively, while also considering the broader implications.
The Bad: Displacement and Economic Inequality
However, as highlighted in Schelling’s article, the rise of AI brings serious risks, including the displacement of workers. Our traditional systems are based on the assumption that displaced workers can quickly reskill, but this overlooks the realities of time, capital, and social connections necessary for meaningful reemployment. The gap between those who can adapt and those left behind is only growing wider.
If we don’t factor this into our strategy, we risk perpetuating inequality, as the benefits of AI accrue to the few while many are left behind.
The Ugly: Societal Displacement and Long-Term Damage
If unchecked, AI’s relentless pursuit of efficiency could lead to widespread societal displacement. Schelling AI warns of a future where only a fraction of the workforce is needed to keep economies running, and the rest are deemed unnecessary. Imagine a world where AI proficiency determines who thrives and who gets left behind.
This isn’t just about job loss — it’s about the long-term consequences for society. As board members, we must ask: What are the costs of leaving people out of the AI revolution? Will we look back and realize too late that we contributed to a world where millions are marginalized as "lazy" or unemployable simply because they couldn’t keep up with the pace of AI change?
A Pragmatic, Human-Centric Approach:
Inspired by the ideas in "How To Think About AI," the path forward requires a balanced, human-centric approach to AI adoption. Here’s how we can lead the way:
Prioritize Human Impact Assessments: Before implementing AI initiatives, assess their potential impact on employees and communities. Include metrics that account for social costs, not just financial returns.
Invest in Workforce Transition Plans: Instead of assuming displaced workers will find new jobs, create concrete retraining and support programs. By investing in the workforce, we can ensure that employees have the skills needed to thrive in an AI-driven world.
Lead with Ethics and Transparency: Demand transparency from AI vendors and developers. Are the AI tools we’re using reinforcing biases? Are they creating more inequality? By leading with ethics, we can mitigate the risks of AI harming vulnerable populations.
Rethink Efficiency Metrics: Efficiency doesn’t have to mean cutting costs at all costs. We need to develop new ways of measuring success that take into account employee well-being, job satisfaction, and societal contribution.
Collaborate with Other Board Members and Industries: AI isn’t a siloed technology. Its impacts are felt across industries and borders. By collaborating with peers in other sectors, we can develop more robust, multi-stakeholder approaches to navigating the AI revolution.
Conclusion:
As board members, we are responsible for shaping the future of our companies. But with AI, that responsibility extends to shaping the future of society as well. The choices we make today will have profound effects not just on our bottom line, but on the people who make up our workforce and communities.
AI promises immense benefits, but it also brings significant risks. Inspired by Schelling AI’s call to rethink our approach, we must purposefully examine the human side of this technological revolution. By doing so, we can lead with pragmatism and empathy — charting a path that doesn’t just drive efficiency but fosters innovation, growth, and social equity.
Let’s not shy away from the hard questions. Let’s tackle the good, the bad, and the ugly head-on — and in doing so, create a future where AI works for all of us. What do you think?