The 9 key takeaways for recruitment managers from the McKinsey AI report 

The economic potential of generative AI (2023) McKinsey report predicts major changes in the future of work based on the growth of AI in the next decade. How can recruitment managers prepare for the changes? 

Victoria Egba on August 17, 2023 Average reading time: 3 min
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The 9 key takeaways for recruitment managers from the McKinsey AI report 

AI is rapidly changing the future of work, especially in customer operations, marketing and sales, software engineering, and research and development sectors, according to the McKinsey Report. The report expressed how the new wave of generative AI would impact productivity in businesses and the future of work.   

For recruitment managers, understanding these findings is crucial for preparing for the AI-driven transformation of the workforce. Recruitment managers should consider these ten key takeaways from the report.  

1. AI’s impact on job wage

Unlike previous automation technologies, generative AI is likely to have a higher impact on high-wage jobs. Traditionally, automation technologies have primarily impacted lower-skilled and lower-income occupations. However, with generative AI’s ability to automate complex tasks and decision-making processes, high-wage jobs are now susceptible to automation. The expanding automation potential of AI in high-wage jobs means that recruitment managers need to reassess the skill requirements and job profiles of these roles. 

2. Evolving skill set in hiring

Generative AI and other technologies already available, have the ability to automate the tasks that currently take up 60–70% of workers’ time. In keeping up with the changes, recruitment managers need to stay updated on the evolving skill sets needed in these roles and adjust their hiring strategies accordingly.

There’s a need to seek candidates who have a mix of technical expertise and the ability to adapt and collaborate with AI systems.

This shift necessitates a focus on attracting talent with advanced analytical, problem-solving, and creative skills, as well as a strong understanding of how to work alongside AI technologies. 

3. Upskilling and reskilling talents

Upskilling programs can focus on enhancing technical competencies related to AI, such as data analysis, machine learning, and natural language processing. These initiatives can provide employees with the knowledge and tools to leverage AI technologies effectively in their roles. Additionally, reskilling programs can help employees transition into new roles that leverage uniquely human skills and complement the capabilities of AI. It could involve developing skills in areas such as critical thinking, creativity, emotional intelligence, and complex problem-solving.

4. Collaboration with HR and L&D

Collaboration between the HR and learning and development departments can assist in recruitment. It becomes easier to identify the emerging skill gaps resulting from AI adoption and design and make informed decisions in hiring. 

5. Generative AI has economic benefits

Generative AI has the potential to add trillions of euros annually to the global economy. McKinsey’s report estimates that it could contribute between €2.4 trillion to €4 trillion per year, significantly increasing the impact of AI by 15 to 40 percent. The automation and optimization of work activities through AI technologies lead to increased productivity and cost savings. This, in turn, drives economic growth on a global scale.

6. Industry impact

Although generative AI will have quite a substantial impact across all industry sectors, the banking, high-tech, and life sciences are among the sectors that could experience the highest impact as a percentage of their revenues. In the banking sector, most repetitive tasks like form filling, record keeping, and customer service are already being automated.

AI is expected to make more manual processes extinct in the banking sector, science and technology industry within the next decade.

Recruitment managers can begin to align their talent acquisition strategies with these AI-intensive industries.

7. Impact on higher-educated workers

Unlike traditional automation, generative AI is expected to have the most impact on activities perform8ed by workers with higher levels of educational attainment. Generative AI stands out in its ability to augment the work of individuals who possess advanced education and skills. It has the potential to revolutionize job functions that rely heavily on effective communication, supervision, documentation, and collaboration. As AI advances, it is likely to reshape how these tasks are performed, allowing for increased efficiency and effectiveness in the workplace. 

8. Potential of employee productivity growth 

Generative AI automates specific tasks and activities; it has the power to enhance productivity levels and mitigate the effects of slower economic growth. This is particularly crucial in the face of long-term structural challenges such as declining birth rates and ageing populations. 

Interestingly, the timeline for the adoption of AI and its impact on productivity has accelerated compared to previous reports. The range of possible timeframes has narrowed, indicating increased confidence in the arrival of advanced technological capabilities within specific time periods. It implies that realizing the potential benefits of generative AI in driving productivity growth may happen sooner than anticipated.

Generative AI could be a catalyst for higher productivity growth, countering the slower economic growth experienced in recent years.  

 9. Impact on collaboration and expertise

Generative AI will likely impact collaboration and the application of expertise, areas that were previously considered less prone to automation. With AI algorithms analyzing vast amounts of data and generating insights, decision-making processes can be augmented, enabling more informed and data-driven choices. Additionally, generative AI can leverage expertise by providing recommendations, generating insights, and assisting in problem-solving, thereby amplifying the capabilities of employees in various domains. 


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