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Steve Murphy is the CEO of Epicor, a global leader providing flexible, industry-specific software designed around its customers’ needs.
Whenever a significant labor-saving technology starts taking root, it’s not long before we hear alarms about its job-crushing potential. It happened with the shift to client-server computing, and it happened with the transition to cloud-based systems. Now, it’s happening with artificial intelligence (AI).
In the 1980s and 1990s, there was widespread concern about job losses, particularly among IT professionals who specialized in mainframe systems. Similar fears emerged when cloud computing began gaining traction in the 2000s. The truth of the matter was that the new technologies increased both productivity and overall employment. That’s not to say some positions didn’t disappear, but more new roles emerged as new opportunities emerged.
As the alarm bells ring once again, I predict AI will not eliminate jobs. However, people who use AI will replace people who don’t use AI.
Embracing The Future
In the early 1980s, my accountant father purchased VisiCalc, the first-ever spreadsheet application. This was a groundbreaking tool that revolutionized how numbers were crunched, moving from mainframes and punch cards to something that could be run on a personal computer. Accountants who mastered VisiCalc, and later Excel, found themselves more successful and leading better professional lives.
Just as VisiCalc did not eliminate accountants but rather elevated those who adapted to it, AI will empower those who learn to harness its capabilities. Those who embrace and learn AI will outpace those who don’t.
In our company, which employs around 350 people in finance-related roles, the individuals at the top are those who have mastered these evolving IT systems. They can manage millions of transactions annually, consolidating data into comprehensive reports that drive decision-making. This expertise is becoming increasingly essential as businesses scale and complexity grows.
The Impact Of AI On The Workforce
Since the general release of ChatGPT in November 2022, AI’s influence has only grown. Contrary to the initial fear that AI would eliminate jobs, the reality is that AI is enhancing productivity and creating new opportunities. Skilled professionals will increasingly focus on the parts of their jobs that cannot be automated, ensuring their continued relevance and value. However, those who resist learning and adapting to new technologies may find themselves at a disadvantage.
Today, certain sectors are pulling ahead in this AI-driven transformation. For example, operational and administrative roles such as accounts payable and receivable are seeing significant automation. AI can now accurately verify payables, reducing the need for manual checks and ensuring only legitimate bills are paid. Similarly, in customer service, AI is being used to triage and support problem-solving, freeing up skilled engineers to focus on more complex issues.
Legal departments are also benefiting from AI, particularly in contract review. AI can now identify non-standard terms and conditions, flagging them for human review. This capability reduces the time lawyers spend on routine tasks, allowing them to focus on more nuanced legal challenges.
As these examples show, AI is not just a tool for efficiency but a catalyst for professional growth and advancement.
The Role Of Management In AI Adoption
Given the parallels with past technological shifts, the question arises: Where does the responsibility lie for ensuring employees are prepared for the AI revolution? Is it up to individual employees to adapt, or should management take a proactive role in this transformation?
The answer is both.
On one hand, individual professionals—whether accountants, engineers or lawyers—must recognize the importance of staying current with AI to remain competitive in their fields. Those who do will likely find themselves more productive, less pressured and possibly on a faster track to promotion.
For example, in my company, an employee who automated a complex financial report using AI was promoted to vice president. His ability to leverage AI to materially improve our business was instrumental in my decision to support his promotion.
At the same time, management also has a critical role to play in facilitating this transition. Leaders must be forward-thinking, identifying where AI can provide the most significant return on investment and guiding their teams through the adoption process.
This may involve substantial investments in AI-related projects and infrastructure. For instance, we are spending millions of dollars on AI initiatives this year and plan to invest even more next year. These investments are not just about keeping up with the competition; they are about ensuring our employees have the tools they need to succeed in an AI-driven world.
While there is no guarantee of success, the cost of inaction is far higher.
Navigating AI’s Limitations
Now, a necessary reality check. Despite its potential, AI is not infallible. It’s crucial to understand where AI works well and where it doesn’t. For instance, while AI can generate standard accounting reports, it may “hallucinate” when asked to predict future events or make complex decisions. Therefore, it’s essential to maintain checks and balances within AI systems, ensuring outputs are accurate and reliable.
Moreover, AI’s strength lies in its ability to process vast amounts of historical data and generate insights. However, it is less capable of making decisions based on incomplete information. Understanding these limitations is key to effectively leveraging AI in business.
Ignore AI At Your Peril
As we stand on the cusp of a new era in technology, the lessons from past transformations are clear: Those who adapt will thrive; those who resist will be left behind.
AI is a powerful tool, but its success depends on how well individuals and organizations can integrate it into their work processes. Whether driven by individual initiative or strategic management decisions, the adoption of AI is going to be increasingly critical to business success.
The future belongs to those who can harness the power of AI to enhance their skills and drive innovation. That trend is clear. Ignore it at your peril.
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