California Management Review
California Management Review is a premier academic management journal published at UC Berkeley
by David De Cremer and Mark Esposito
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A recent survey indicates that 96% of executives expect artificial intelligence (AI) to boost the efficiency and productivity of employees.1 This expectation signals that humans are predominantly seen as a resource – empowered by AI – to optimize outputs within the business world. From an economic perspective, this view aligns with the traditional notion of labor as a factor of production, where the goal is to maximize output while minimizing costs. Integrating AI into the workforce promises significant economic benefits, potentially increasing GDP by trillions of dollars globally.2
Rebecka C. Ångström, Michael Björn, Linus Dahlander, Magnus Mähring, and Martin W. Wallin, “Getting AI Implementation Right: Insights from a Global Survey,” California Management Review, 66/1.
Konstantin Hopf, Oliver Müller, Arisa Shollo, and Tiemo Thiess, “Organizational Implementation of AI: Craft and Mechanical Work,” California Management Review, 66/1.
However, this approach raises concerns about income inequality, as the gains from AI-driven productivity may disproportionately benefit capital owners rather than workers. Additionally, the rapid adoption of AI could lead to short-term job displacement, necessitating substantial investments in retraining and education to maintain economic stability.3 The economic implications extend beyond individual firms to entire industries and national economies, potentially reshaping comparative advantages and global trade patterns.
As AI becomes more prevalent in the workplace and society in general, policymakers and executives must grapple with balancing the pursuit of economic growth with ensuring equitable distribution of benefits and maintaining social cohesion. Observations like this have led the rise of AI to spark profound debates about what role humans will play in a world increasingly shaped by machines. At the heart of this discourse lies a question of not technology’s limits but humanity’s potential.
Indeed, although AI is often presented as a rival to human intelligence, a more collective sense of awareness must arise that frames AI as offering an unprecedented opportunity to redefine what it means to be human. Nevertheless, this potential can only be realized if organizations and individuals embrace a paradigm shift—from viewing humans as task-doers optimized for efficiency to recognizing them as beings capable of growth, creativity, and profound connection. Even more so, we argue that if organizations do not accept that such a shift is needed, AI’s increased use will eventually make workers less productive, as their growth as humans is denied.4
Historically, technological advancements have been evaluated through productivity and efficiency. Metrics like output per hour and error reduction have long been the yardsticks of progress. While these measures are crucial, their dominance has inadvertently narrowed how we perceive human potential. In such a framework, people are often reduced in their ability to perform specific tasks quickly and effectively. This narrow perspective has led to a misalignment between technological progress and human development. As AI systems grow in sophistication, there is a risk of further devaluing human contributions that cannot be easily quantified.
Consequently, we must broaden our evaluation criteria to include metrics that capture uniquely human qualities such as creativity, empathy, and adaptability. Easier said than done, in fairness, as AI amplifies instead this dilemma. Its power to automate mundane, repetitive, and even complex cognitive tasks invites comparisons between human and machine capabilities, often to the former’s detriment. However, this framing misses the point. AI should not be treated as a competitor to human intelligence; it is not here to replace humanity but to augment it.5 This approach requires a profound shift in thinking that moves beyond a mechanical and, therefore, reductionistic view of human worth.
Rather than eroding the essence of humanity, AI can elevate it. To harness this potential, organizations must consider how AI integrates with the human experience to expand, rather than reduce, what it means to be human. This shift requires reimagining AI as a partner that enhances human creativity, empathy, and self-actualization. This perspective necessitates a fundamental reevaluation of organizational structures and performance metrics. Instead of solely focusing on efficiency gains, companies should develop frameworks that measure and reward human-centric outcomes. This could include assessing improvements in employee well-being, the quality of human interactions, and the depth of creative problem-solving.
Furthermore, organizations must cultivate uniquely human skills like emotional intelligence, ethical reasoning, and adaptability. Doing so can create a symbiotic relationship between AI and human workers, where each complements the other’s strength. This approach not only maximizes the potential of AI but also fosters a more fulfilling and sustainable work environment. For example, consider how AI in healthcare empowers doctors to focus less on diagnostics and more on patient care. By taking over data-heavy tasks, AI frees humans to engage in uniquely human endeavors—building trust, offering emotional support, and crafting personalized treatment plans.6 While unburdening humans with their heavy duties may resemble the logic of efficiency, it also roots our humanity deeper.
This shift allows healthcare professionals to cultivate profound empathy and intuition, qualities that define the essence of healing. AI catalyzes human growth, enabling doctors to develop a holistic understanding of patients as individuals with unique stories, fears, and hopes. In this paradigm, AI does not replace human touch; it amplifies our capacity for compassion and connection, reinforcing the irreplaceable value of human presence in the healing process. Similarly, AI-driven tools in education can adapt to individual learning needs, enabling teachers to concentrate on mentorship and foster a love of learning.7 These examples illustrate a future where AI becomes an enabler of deeper human connection and growth. By offloading routine or analytical tasks, AI allows humans to dedicate themselves to activities that foster creativity, empathy, and personal development.
Realizing this vision requires organizations to think beyond short-term gains and invest in how AI integrates into human lives. This process involves three critical shifts:
The future will belong to organizations that embrace AI not as a threat but as an ally in pursuing human flourishing. This vision moves beyond fears of replacement or obsolescence to a richer understanding of technology’s role in our lives. By strategically integrating AI into our human experience, we have the opportunity to become not less but more human—more empathetic, more creative, and more attuned to what makes life meaningful. In this paradigm, AI becomes a powerful amplifier of our shared humanity, enabling us to explore the depths of our potential and redefine the boundaries of human achievement.
The journey toward this future is not without challenges. It demands a willingness to think long-term, invest in human-centered design, and cultivate a culture that values human potential in all dimensions. The reward is a world where AI strengthens human identity and capabilities, enabling individuals and organizations to thrive unimaginably. In a world augmented by AI, the question is not whether machines will outthink humans but how humans will rethink themselves. With thoughtful integration, the answer could redefine humanity for generations to come.
B. Robinson, “77% Of Employees Report AI Has Increased Workloads And Hampered Productivity, Study Finds”, Forbes, July 23, 2024, https://www.forbes.com.
M. Chui, R. Roberts, L. Yee, E. Hazan, A. Singla, K. Smaje, A. Sukharevsky, and R. Zemmel, “The Economic Potential of Generative AI: The Next Productivity Frontier”, McKinsey & Company, June 14, 2023, https://www.mckinsey.com.
J. Tamayo, L. Doumi, S. Goel, O. Kovács-Ondrejkovic, and R. Sadun, “Reskilling in the Age of AI”, Harvard Business Review 101, no. 5 (September–October 2023): 56–65.
H. Mensik, “AI is Actually Making Workers Less Productive”, WorkLife, July 24, 2024, https://www.worklife.news.
C. Riedl, “How to Use AI to Build Your Company’s Collective Intelligence”, Harvard Business Review.
E. Morrow, T. Zidaru, F. Ross, C. Mason, K. D. Patel, M. Ream, and R. Stockley, “Artificial Intelligence Technologies and Compassion in Healthcare: A Systematic Scoping Review”, Frontiers in Psychology 13, no. 971044 (January 2023): 1-31.
T. Milberg, “The Future of Learning: How AI is Revolutionizing Education 4.0”, World Economic Forum, April 28, 2024, https://www.weforum.org.
T. Christensen, S. Durth, K. Jones, and N. Rashid, “Upskilling and Reskilling Priorities for the Gen AI Era”, McKinsey & Company, September 30, 2024, https://www.mckinsey.com.