Research indicates that the rapid integration of artificial intelligence (AI) in workplaces could lead to significant skill erosion among employees, posing a long-term risk to businesses. This concern is highlighted in the study titled The Vicious Circles of Skill Erosion, published in 2023, which examined an accounting firm that faced severe challenges after relying heavily on automated systems. Researchers found that employees had become complacent, leading to diminished competence and awareness of essential tasks.
In the study, when the firm’s automation system was removed, it became evident that employees struggled to execute core accounting functions. This finding underscores a critical issue as AI tools become increasingly common across various sectors. To gain insights into this phenomenon, I spoke with two of the study’s co-authors, Esko Penttinen, Associate Professor at Aalto University, and Joona Ruissalo, a post-doctoral researcher at the same institution.
The Impact of AI on Workplace Skills
Penttinen explained that their research team adopts a “problem-based” approach, focusing on real-world issues. The initial spark for their investigation came from an unexpected conversation with an accountant who revealed that the removal of an automation system exposed the erosion of their skills. This revelation prompted an in-depth case study to understand how such erosion occurs within organizations.
“Our main finding emphasizes the necessity of balancing technology use with active engagement in business processes,” said Penttinen. He noted that while automation can enhance productivity, it is crucial for companies to maintain a connection between employees and the tasks they perform. This balance is essential to avoid the extremes of total automation or complete manual processes.
The researchers argue that many organizations need to reassess how they approach the integration of automation. They point out that while technology aims to liberate human effort for more complex tasks, it often leads to a disconnect from the underlying processes that foster critical insights and skills.
Mitigating the Risks of Skill Erosion
With the current enthusiasm surrounding AI, the question arises: how can businesses prevent the erosion of essential skills? Penttinen and Ruissalo suggest implementing several measures to combat this issue. They are currently working on a follow-up paper that emphasizes the importance of technical and organizational controls. These measures include regular checks to ensure employees remain engaged and understand the automated systems they use.
Ruissalo added that creating opportunities for employees to collaborate on complex cases or developing training environments without automation can help address skill gaps. “Periodic audits can also encourage employees to justify their outputs, ensuring they remain connected to the work they produce,” he explained.
Moreover, incorporating explanatory features within essential systems can facilitate learning and reinforce understanding of how outputs are generated. This approach not only fosters reflection but also encourages employees to critically evaluate AI-generated results.
The researchers also highlighted the significance of prompt engineering. Ruissalo explained that crafting effective prompts for AI tools requires a deep understanding of the subject matter. Employees must not only generate prompts but also critically assess the outputs they receive. This critical engagement is vital for preventing complacency and ensuring that skills remain sharp.
As AI tools become more sophisticated, the risk of automation complacency increases. Employees may become overly reliant on AI-generated outputs, leading to a decline in their ability to perform tasks independently. This effect is particularly pronounced among junior staff, who may miss out on valuable learning opportunities if they primarily evaluate AI outputs rather than engaging deeply with their work.
Despite the urgency of addressing skill erosion, both researchers noted that this issue often remains low on company agendas. The latent nature of skill degradation means that organizations may not recognize the problem until it is too late, often triggered by the failure of automated systems.
To combat this, Penttinen urged companies to engage in scenario analysis, evaluating potential risks related to automation. Questions such as the likelihood of an AI tool becoming unavailable or changes in required skills due to environmental factors are crucial for strategic planning.
In conclusion, as businesses increasingly turn to AI for efficiency gains, it is essential to maintain a mindful approach to automation. The insights from Penttinen and Ruissalo highlight the importance of balancing technology with human skill development, ensuring that organizations remain adaptable in a rapidly evolving landscape.
