The rapid advancements in Artificial Intelligence (AI) are fueling what is known as the Fourth Industrial Revolution. According to Klaus Schwab, Founder and Executive Chairman of the World Economic Forum, this revolution will transform industries in ways we can barely imagine. Previous industrial revolutions, starting in 1760, 1870, and 1969, reshaped economies and societies. AI is poised to do the same, but with it comes new challenges—particularly in how organizations and employees adapt to this change.
While any change can meet resistance, change of this magnitude can take it to an extreme. We can look at the Luddites to see how far it can go. For those that don’t recall the chapter on the first Industrial Revolution from History class, the Luddites were a group of skilled craftsmen that believed some of the new machines would lead to companies replacing them with lower skilled workers. They protested by destroying the machines with sledgehammers. While we’re unlikely to see AI opponents wielding sledgehammers against our servers, resistance to change remains a significant factor when introducing AI in modern organizations.
Where to begin with AI
To successfully manage change during AI adoption, common strategies—like clear communication, employee engagement, and training—are key. But AI comes with unique considerations. Julie Ode, writing for the Institute of Project Management, highlights that ethical considerations must be a key component of any AI change management. Bias in AI algorithms can result in unfair or discriminatory outcomes, undermining trust and efficacy. Lack of transparency, where users can’t understand how AI decisions are made, can also foster distrust. As such, an ethical framework should be an integral part of any AI strategy to ensure fairness, transparency, and privacy. Documenting your organization’s AI strategy is the first step in your transformation journey.
Creating an AI strategy
Creating an AI strategy is vital for ensuring that AI aligns with your business goals. Bernard Marr, writing in Forbes, outlines essential steps starting with reviewing your current overall business strategy to understand how AI could impact it. The other steps are:
- Review business strategy
- Determine strategic AI priorities
- Outline short-term AI adoption priorities
- Develop a data strategy
- Address ethical and legal issues
- Identify technology issues
- Review skills and capacity
He then notes that, with the AI strategy complete, steps 8 and 9, performed in parallel, are implementation and change management.
Creating an AI change management plan
With a clear strategy in place, it’s time to manage the change. Start by educating employees generally about AI’s capabilities and limitations. For example, some AI systems might ‘hallucinate’ fake information or plagiarize content, which could be problematic if not properly managed. Also, discuss your company’s approach to AI and when it is appropriate to use it — misunderstanding AI’s role at your company can create unnecessary fear and risk.
Once you have the base knowledge and guidelines in place, you are ready to implement something specific. For the next level of change management, OCM Solution outlines a good pathway to follow:
Step 3, conducting a Change Impact Assessment, is crucial as it helps you understand how different employees will be affected by AI implementation. Step 4 focuses on addressing resistance—whether through additional training, communication, or leadership involvement. Be transparent about the changes and emphasize the role of AI in enhancing, not replacing, employees’ work. Let them know about training/upskilling that will be available. And, of course, engage them as early in the transformation process as you can so they can be a part of the change, provide feedback, and improve your overall implementation.
Wrapping up: Preventing the next Luddite mob
The Fourth Industrial Revolution is here, and AI is at its heart. By developing a thoughtful strategy, addressing ethical concerns, and preparing your employees for the upcoming changes, you’ll position your organization for success. Embrace the transformation—engage your workforce, and together, you can navigate the future of work with confidence. The transition may be challenging, but with the right approach, it will be far from destructive. And your employees will leave the sledgehammers at home.