br-AI-ve new workforce. same old challenges.

The “AI workforce” is dawning. Those of us without armies of AI agents suffer immense FOMO, convinced we’re falling behind but unsure where / how to start.

Perhaps, that is, until we read how “an AI consultant tells Axios one of their clients recently spent half a billion dollars in a single month after failing to put usage limits on Claude licenses for employees.” Or a BCG study reporting “contrary to the promise of having more time to focus on meaningful work, juggling and multitasking can become the definitive features of working with AI.”

AI is surely powerful & transformational. But as we learn more, the “workforce of the future” faces familiar challenges… Keeping things on task and on budget; protecting client secrets and maintaining security protocols; avoiding vendor lock-in and preserving strategic advantages & brand equities. Meet the new BOTS… same as the old.

Yes, but... AI is shifting some corporate costs from human payroll to metered digital labor, creating new exposure to price increases, usage overruns, switching charges & vendor lock-in. Software licenses are the new time cards, unexpected costs the norm.

“AI forecast misses are the rule, not the exception... only 15% of companies forecast AI costs within ±10%; 56% miss by 11–25%; and 24% miss by more than 50%.” (mavvrik)

The new accounting…

Yes, but... AI “workers” are controlled by third parties who can raise costs, suspend access, change rules, throttle usage, alter model behavior, or refuse contested use cases. What if they demand customers (like you) embrace or reject policies such as DEI? What if they refuse to support clients in the defense or fossil fuel sectors… or deny services to companies who boycott those sectors? Or what if the countries in which your AI suppliers operate impose import or export controls, data access demands or discriminatory tax regimes? J.P. Morgan notes seven geopolitical risks for AI:

Yes, but… While AI workers don’t need empathetic bosses to keep them happy, motivated, productive and focused, AI hardly eliminates the need for managers. It creates a new class of managers: people who supervise digital workers, approve their actions, audit their behavior, find and fix their mistakes and pull the kill switch when needed. Overseeing AI agents and AI work can prove time-consuming, grueling and inefficient:

“Teams using AI for augmentation — targeted assistance within an established workflow — see ~+24% efficiency. Teams attempting automation — delegating whole tasks end-to-end — experience ~−18% efficiency due to verification and debugging overhead.” (Carnegie Mellon/Stanford)

Yes, but… while replacing fallible humans with AI bots might reduce some liability risks, an Oxford Economics / RepRisk’s survey shows financial-sector C-suite executives increasingly worry about new AI-related conduct risks.

AI conduct risk: the risk that AI creates compliance, legal, reputational, or financial harm through misuse, weak oversight, bad outputs, data leakage, misleading communications, biased or unauditable decisions, or failures to control how models are deployed and monitored.

As if… The AI era is creating a whole new opportunistic ecosystem of consultants, content creators & con-artists… Promptepreneurs filling LinkedIn with “game-changing magic prompts;” Slopulists flooding our X feeds with AI-enhanced political disinformation; “AI-forward advisors to C-Suites” doing whatever that actually is. Some will build real value; many will sell picks, shovels, sermons, and snake oil to executives terrified of missing the next revolution. Be cautious.

While I’m clearly skeptical of AI as an “easy button” anyone can press to transform their business into a world-beater with minimal friction, companies that fail to adapt to digital transformations often don’t survive.

Ignore AI at your own peril. Its power is real and game-changing. But AI implementation is hardly foolproof, and it’s very easy to misstep and waste time, money or good will. Even as models evolve and improve, they will require thoughtful implementation, constant refinement and regular strategic adjustment. That demands smart leaders and strong teams. Both as we move towards an AI-everywhere economy and especially once we get there, the key differentiator — and your only comparative advantage when everyone has AI — will be your people.

A live discussion with founder / funder / writer Auren Hoffman — author of “If You Can’t Get a Job Today, It’s Your Fault” — about careers, entrepreneurship & thriving in the age of AI… To join us sign up here.

Heavy topic this week… deserves a lighter video. One of Key & Peele’s very best: