Companies are using AI to enhance their organizational learning, improving not only financial results, but also the ability to manage strategy-related uncertainties.
Companies are much more likely to benefit from AI when their employees benefit from it. We found that organizations with employees who get value from AI are more likely to realize significant financial benefits. A new survey conducted by GAMMA, part of BCG X, along with the BCG Henderson Institute and MIT Sloan Management Review, analyzed AI adoption and its impact on organizations, teams, and employees.
Key findings from the analysis include:
• 64% of survey respondents personally derive moderate, significant, or extensive value from using AI.
• Workers who get value from AI are 3.4 times as likely to be more satisfied in their job as employees who don’t get value from AI.
• Organizations with employees who personally derive value from AI are 5.9 times more likely to achieve significant financial benefits from AI as organizations with employees that don’t get value from AI.
AI empowers individuals in three principal ways: increased competence, increased autonomy, and stronger relationships. The analysis also includes specific actions that companies can take to increase employees’ adoption and use of AI—by promoting trust, encouraging understanding, fostering agency, and promoting awareness.
Key findings from the analysis include:
• 64% of survey respondents personally derive moderate, significant, or extensive value from using AI.
• Workers who get value from AI are 3.4 times as likely to be more satisfied in their job as employees who don’t get value from AI.
• Organizations with employees who personally derive value from AI are 5.9 times more likely to achieve significant financial benefits from AI as organizations with employees that don’t get value from AI.
AI empowers individuals in three principal ways: increased competence, increased autonomy, and stronger relationships. The analysis also includes specific actions that companies can take to increase employees’ adoption and use of AI—by promoting trust, encouraging understanding, fostering agency, and promoting awareness.
Do organizations benefit from AI at the expense of their employees? The answer is clearly no, according to our new analysis, which demonstrates that only a small portion of employees do not get value from AI. Indeed, organizations with employees who derive value from AI are six times as likely to achieve significant financial benefits than organizations with employees who do not benefit from the technology. Companies benefit from AI when their employees do as well.
For the past five years, GAMMA, part of BCG X, has partnered with the BCG Henderson Institute and MIT Sloan Management Review to analyze AI adoption and its impact on organizations, teams, and employees. This year’s research includes more than 1,700 survey respondents and interviews with 17 executives.
Key Findings from Our Analysis
How AI Empowers Individuals
Our research finds that using AI creates value for individual employees in three ways.
Increased competence. First, using AI makes many people better at their job by giving them sharper insights and more detailed, granular information. It enables employees to make better decisions, deepen their understanding of their job, and exploit business opportunities.
Increased autonomy. Using AI often affords individuals more autonomy by providing guidance and empowering employees to make their own decisions based on AI recommendations—and without the direct support of a manager.
Stronger relationships. Using AI can help individuals deepen relationships with coworkers, customers, business partners, and other stakeholders. In many cases, teams interact when deploying the AI solution, leading to improved relationships. In other cases, the use of AI improves processes and creates a better working environment.
Managers Can Boost AI Use and Value for Employees
Despite these benefits, many employees may still have preconceived notions about AI that prevent them from willingly using it regularly and maximizing its value. Companies can overcome these barriers by relying on well-established measures—such as increasing employee trust in and understanding of the technology—as well as some less-appreciated approaches that our research identified.
Promote trust. Managers need to make sure employees trust AI and its output in order to overcome their reluctance to use it—which corroborates findings from our 2021 report.
Encourage understanding. As with any technology, people need to understand how to work with AI and how using it can benefit their job and add value.
Foster agency. To encourage greater acceptance of AI, managers need to balance mandating AI use and employee agency. It may sound counterintuitive, but requiring the use of AI can overcome resistance and increase adoption; once people start using it, they see the value and willingly continue. However, organizations should not implement AI at the expense of employees’ autonomy. Managers must empower employees to protect their agency.
Promote awareness. Some employees may be unaware that they’re using AI, making the benefits of the technology invisible to them. Employees who use AI knowingly are 1.6 times more likely to get individual value and 1.8 times more likely to be satisfied with their jobs compared to those who don’t realize they use AI. Managers need to highlight the employee apps and software that already include AI.
Companies that focus only on the organizational value of AI—and don’t think about the value it provides to individuals—are missing the big picture. Our research clearly demonstrates that organizations are far more likely to obtain value from AI when their workers also reap benefits from the technology.
Tech + Us: Monthly insights for harnessing the full potential of AI and tech.
BCG GAMMA is BCG’s global team dedicated to applying artificial intelligence and advanced analytics to business at leading companies and organizations. The team includes 800-plus data scientists and engineers who apply AI and advanced analytics expertise (e.g., machine learning, deep learning, optimization, simulation, text and image analytics) to build solutions that transform business performance. BCG GAMMA’s approach builds value and competitive advantage at the intersection of data science, technology, people, business expertise, processes and ways of working. For more information, please visit our web page.
ABOUT BOSTON CONSULTING GROUP
Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.
Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.
© Boston Consulting Group 2024. All rights reserved.
For information or permission to reprint, please contact BCG at permissions@bcg.com. To find the latest BCG content and register to receive e-alerts on this topic or others, please visit bcg.com. Follow Boston Consulting Group on Facebook and X (formerly Twitter).
Authors
Over eight seasons, the Me, Myself, and AI podcast has featured dozens of experts who are redefining how companies use AI. Here are some of the lessons they've shared.
To achieve significant financial benefits from their machines, companies will have to look beyond automation—and focus instead on learning and organizational transformation.
A new study by GAMMA, BHI, and MIT-SMR suggests a counterintuitive key to morale and organizational effectiveness: robots.
Companies are using AI to enhance their organizational learning, improving not only financial results, but also the ability to manage strategy-related uncertainties.
By using AI to generate KPIs that are more accurately predictive than legacy performance indicators, companies are challenging assumptions about the drivers of business success.
To achieve significant financial benefits from their machines, companies will have to look beyond automation—and focus instead on learning and organizational transformation.
A new study by GAMMA, BHI, and MIT-SMR suggests a counterintuitive key to morale and organizational effectiveness: robots.
A new experiment shows that GenAI isn’t just a tool for increasing productivity—it can expand the range of tasks workers can perform.
Sharing data with competitors might sound scary to executives, but only collaboration can solve some of industry’s biggest problems.
By using AI to generate KPIs that are more accurately predictive than legacy performance indicators, companies are challenging assumptions about the drivers of business success.
Today’s large language models are the just start of the GenAI revolution—companies need to prepare for what’s coming next: autonomous agents that work independently to achieve an assigned goal.
Companies are using AI to enhance their organizational learning, improving not only financial results, but also the ability to manage strategy-related uncertainties.
New technologies can dramatically improve finance processes, making them faster and more accurate, so that CFOs have better insights about what’s coming.
Over eight seasons, the Me, Myself, and AI podcast has featured dozens of experts who are redefining how companies use AI. Here are some of the lessons they've shared.
By using AI to generate KPIs that are more accurately predictive than legacy performance indicators, companies are challenging assumptions about the drivers of business success.
Companies are using AI to enhance their organizational learning, improving not only financial results, but also the ability to manage strategy-related uncertainties.
By using AI to generate KPIs that are more accurately predictive than legacy performance indicators, companies are challenging assumptions about the drivers of business success.
To achieve significant financial benefits from their machines, companies will have to look beyond automation—and focus instead on learning and organizational transformation.
A new study by GAMMA, BHI, and MIT-SMR suggests a counterintuitive key to morale and organizational effectiveness: robots.
To achieve significant financial benefits from their machines, companies will have to look beyond automation—and focus instead on learning and organizational transformation.
A new study by GAMMA, BHI, and MIT-SMR suggests a counterintuitive key to morale and organizational effectiveness: robots.
CPG companies may be masters at marketing, but when it comes to advanced analytics and AI, there’s room for improvement. To catch up, they need to study lessons from successful early adopters.
AI isn’t just about technology. It’s about people, processes, culture, and business strategy, too. Companies need to bring all the pieces together.
What’s Next
Report
The Hidden Cultural Benefits of AI
A new study by GAMMA, BHI, and MIT-SMR suggests a counterintuitive key to morale and organizational effectiveness: robots.
BCG X
BCG X disrupts the present and creates the future by building new products, services, and businesses in partnership with the world’s largest organizations.
Artificial Intelligence
Scaling artificial intelligence can create a massive competitive advantage. Learn how our AI-driven initiatives have helped clients extract value.
Article
Are You Making the Most of Your Relationship with AI?
To achieve significant financial benefits from their machines, companies will have to look beyond automation—and focus instead on learning and organizational transformation.
1 /
4