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FUTURE-READY BUSINESS:
ASSESSING NEW ZEALAND’S GROWTH
POTENTIAL THROUGH AI
Research Scope
Workers
Business
leaders
Sample Size for all up New Zealand
101 Business Leaders
Respondents Profile
53% C & C-1 ; 47% C-2 level
Organizations Sizes
46% small & mid-sized, 54% large sized
C-level
(i.e. CIO, COO, CEO),
26%
C-1 level
(i.e. VP or Director level
executives), 21%
C-2 level
(i.e. Senior Manager),
53%
<250
employees,
20%
250 – 999
employees ,
34%
>1,000
employees,
46%
Sample Size for all up New Zealand
100 Workers
Respondents Roles
Verticals
Section Title
(tech adoption) ^ tech capabilities
Section Title
AI is a game changer
Addressing the Opportunities
Q: With the introduction of AI, what is the percentage of additional new innovative products and services your organization expect to produce today and in three years from now?
Asia Pacific Business = N=1605 New Zealand Business = N = 101
22%
44%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Percentage of new, innovative products and services
organizations produced today
and in three years with the introduction of AI
2.0x
AI will double the rate of innovation
improvements in New Zealand
Today 2021
Existing (BAU)
AI will increase the rate of
employee productivity gains in New Zealand
Q: What are your organization’s key drivers for adopting AI-related solutions?
Q: For the top 3 areas above, please indicate the level of improvement seen today and the expected increase in 3 years’ time
Asia Pacific Business = N=1605 New Zealand Business = N = 101
26%
39%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Improved productivity gains among employees today
and in 3 years
1.5x
Today 2021
Existing (BAU)
Q: How important is AI to your organization’s competitiveness next 3 years?
New Zealand Business = N = 101
18%
30%
30%
22%
Not important - Largely hype
Somewhat important – Limited use cases in
organizations and industries
Important – Many use cases in
organizations and industries
Very important – Game changer for
organizations and industries
Importance of AI to organization’s
competitiveness in next 3 years
• 82% say that AI is instrumental to organization’s
competitiveness in the next 3 years
21%
41%
Higher competitiveness
Today (2018) 3 Years (2021)
• Organizations with AI in New Zealand expect it to
increase their competitiveness by 2 times in 3 years
2x
AI drives competitive advantages
Q: What are your organization’s key drivers for adopting AI-related solutions?
Q: For the top 3 areas above, please indicate the level of improvement seen
today and the expected increase in 3 years’ time
New Zealand Business with AI = N=52
Drivers to Adopt AI
More than 50% of organizations in
New Zealand have started on their AI journeys
Q: Which of the following statements best describes your organization’s view on AI?
New Zealand Business = N = 101
46%
17%
13%
12%
8%
Better Customer Engagements Higher Margins Higher Competitiveness Accelerated Innovation Better Business Intelligence
Q: What are your organization’s key drivers for adopting AI-related solutions? If your organization has not adopted AI-related
solutions, what do you think would be the key drivers that would influence your organization to adopt AI-related solutions?
New Zealand Business with AI = N=52
Top 5 Drivers to Adopt AI
Q: What are your organization’s key drivers for adopting AI-related solutions? For the top 3 areas above,
please indicate the level of improvement seen today and the expected increase in 3 years’ time
New Zealand Business with AI = N=52
Business Improvements from AI:
Today and in 3 years
2.2x 2.0x 1.9x 1.8x 1.7x
20% 21% 22%
26%
19%
43%
41% 41%
46%
33%
Accelerated Innovation Higher Competitiveness Better Business Intelligence Better Customer Engagements Higher Margins
Today 3 Years
Assessing AI Readiness in Asia Pacific and
New Zealand
0
1
2
3
4
AI Readiness Model
Investments
Strategy
Data
CultureInfrastructure
Capabilities
• 1: Does not consider AI as important,
mainly hype
• 4: Considers AI as a game changer, have
made AI core part of strategy
• 1: No investments or minimal spending on AI
initiatives
• 4: Invested to make AI an organization-wide
strategy, increasing every year
• 1: Risk averse, rigid siloes, and top-down
decision-making culture
• 4: Bottom-up innovative culture, empowered
employee for agile and fast decision making;
cross-unit collaboration
• 1: No internal capabilities, neither for AI model
development nor for solution deployment
• 4: Organization-wide data estate running on cloud or
hybrid with AI analytics such as robotic process
automation or natural language processing
• 1: Data is scattered across different
departments and systems with limited
access
• 4: Data is accessible to all business users
through an enterprise data estate with well
managed quality control, access and
governance services
• 1: Standalone data centers with
reliance on Excel as analytics tools
• 4: Data is accessible to all business
users through an enterprise data
estate with well-managed quality
control, access and governance
services
0
1
2
3
4
Asia Pacific’s AI Readiness
Investments
Strategy
2.35
Culture
Infrastructure
Capabilities
Asia Pacific needs to focus on
improving its AI strategy,
capabilities and infrastructure
Data
2.25
2.43
2.47
2.07
2.18
AI Readiness: Asia Pacific vs New Zealand
New Zealand is ahead of Asia
Pacific in terms of Investments,
Data and Infrastructure, but is
behind in Culture
Asia Pacific Businesses = N=1605
New Zealand Businesses = N = 101
3.68
2.40
2.94
2.462.49
2.21
Investments
Strategy
CultureInfrastructure
Capabilities
Data
0
1
2
3
4
Asia Pacific
New Zealand
AI Readiness: New Zealand vs Leaders in Asia Pacific
New Zealand is ahead of AI
Leaders in Investments, but are
behind in most areas with the
widest gap in Strategy and
Capabilities
New Zealand Businesses = N = 101
Leaders in Asia Pacific= N = 91
0
1
2
3
4
New Zealand
Leaders in Asia Pacific
3.1
3.7
3.2
2.93.1
3.0
Investments
Strategy
CultureInfrastructure
Capabilities
Data
Q: Which of the following statements best describes your organization’s view on AI?
Q: Please indicate the level of improvements seen today as a result of your AI deployment/solution.
Followers = N = 1,514 Leaders = N = 91
Who are the AI Leaders in Asia Pacific?
Leaders
6%
Followers
94%
• Incorporated AI into their core
strategy or started to experiment
with AI
• Have experienced higher
improvements of benefits from AI
• Have started to experiment with AI or have not started with AI
• Moderate to low improvements of benefits from AI, or no benefits
What Makes an AI Leader Different?
Followers = N = 1,514 Leaders = N = 91
5.4x
4.8x
3.7x
3.6x
3.4x
Leaders in Asia Pacific vs Followers
Leaders have a significant edge in all dimensions,
especially in Strategy, Infrastructure and Capabilities.
Q: What are your organization’s key drivers for adopting AI-related solutions? For the top 3 areas above, please indicate the level of improvement seen today and the expected increase in 3
years’ time
Followers = N = 1,514 Leaders = N = 91
0
1
2
3
4
Strategy
Investment
Culture
Capabilities
Infrastructure
Data
Leader Followers
29
16 15
49
32 33
Leader Followers ALL
Benefits experienced from AI (%)
Improvements seen today Improvements expected in 3 years
Today, leaders see 1.8x the benefits from adopting AI.
Understanding the Barriers
Q: What are the top 3 challenges your organization has faced or is facing in adopting AI-enabled solutions?
New Zealand Businesses = N = 101
Top AI Adoption Challenges in New Zealand:
Leadership, Skills and Knowledge
31%
15%
11%
Cultural traits required for AI adoption
are lacking in New Zealand
Q: Which of the following statements best describe your organization's culture and agility? (Choose from scale of 1 to 4, where 1 means that the trait is not seen at all within the
organization and 4 is where the trait is pervasive across the organization)
New Zealand Businesses = N = 101
New Zealand Workers = N = 100
44%
63%
Business Leaders Workers
56% 55%
Business Leaders Workers
45%
60%
Business Leaders Workers
50%
76%
Business Leaders Workers
EMPOWERMENT
Employees are not empowered to
take risks, make decisions
autonomously, and act with speed
and agility
INNOVATION
Leadership does not encourage
employees proactive innovation
GOING BEYOND
Employees do not take on tasks
beyond job description
COLLABORATION
Employees are not encouraged to
partner across vertical, horizontal
functions and roles
AI will augment, not displace jobs
Q: How do you think AI will impact the jobs in your organization in the next 3 years?
New Zealand Businesses = N = 101
New Zealand Workers = N = 100
AugmentJobs
Help employees
do their existing
jobs better
Reduce repetitive
routine tasks in
employee jobs
Create new
knowledge-based
jobs for employees
No impact on
employees’ jobs
Take over jobs and
replace employees
35%
32%
16%
5%
12%
36%
19%
7%
30%
8%
Business Leaders Workers
27%
34%
39%
54%
35%
51%
24%
38%
29%
46%
54%
35%
54%
21%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Basic data input and processing
Literacy, numeracy and communication
Creativity
Critical thinking and decision making
Project management
Quantitative, analytical and statistical skills
General equipment operation, mechanical skills
41%
40%
39%
31%
41%
60%
50%
37%
36%
52%
33%
36%
29%
30%
61%
57%
52%
55%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Adaptability and
continuous learning
Communication and negotiation skills
Entrepreneurship and initiative-taking
Intepersonal skills and empathy
Leadership and managing others
Digital skills
IT skills and programming
Scientific research and development
Technology design, engineering and
maintenance
Future Skills by Business Leaders Future Skills by Workers
Skills for an AI Future: New Zealand
Q: Which of these skillsets do you see most commonly available in the workforce today, and which do you think is most needed 3
years from now in the AI-enabled workplace?
New Zealand Businesses = N = 101 New Zealand Workers = N = 100
Numbers rounded up to the nearest %
Skillsets defined here borrowed from the descriptions in the McKinsey Global Institute discussion paper of May 2018 titled Skill Shift: Automation and the future of the workforce
Physical
and
Manual
Skills
Higher
Cognitive
Skills
Basic
Cognitive
Skills
Technological
Skills
Social and
Emotional
Skills
Top Skills Demanded by Business Leaders
27%
34%
39%
54%
35%
51%
24%
38%
29%
46%
54%
35%
54%
21%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Basic data input and processing
Literacy, numeracy and communication
Creativity
Critical thinking and decision making
Project management
Quantitative, analytical and statistical skills
General equipment operation, mechanical skills
41%
40%
39%
31%
41%
60%
50%
37%
36%
52%
33%
36%
29%
30%
61%
57%
52%
55%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Adaptability and
continuous learning
Communication and negotiation skills
Entrepreneurship and initiative-taking
Intepersonal skills and empathy
Leadership and managing others
Digital skills
IT skills and programming
Scientific research and development
Technology design, engineering and
maintenance
Future Skills by Business Leaders Future Skills by Workers
Skills for an AI Future: New Zealand
Q: Which of these skillsets do you see most commonly available in the workforce today, and which do you think is most needed
3 years from now in the AI-enabled workplace?
New Zealand Businesses = N = 101 New Zealand Workers = N = 100
Numbers rounded up to the nearest %
Skillsets defined here borrowed from the descriptions in the McKinsey Global Institute discussion paper of May 2018 titled Skill Shift: Automation and the future of the workforce
Physical
and
Manual
Skills
Higher
Cognitive
Skills
Basic
Cognitive
Skills
Technological
Skills
Social and
Emotional
Skills
Top Skills Demanded by Business LeadersBiggest Difference
41%
40%
39%
31%
41%
60%
50%
37%
36%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Adaptability and
continuous learning
Communication and negotiation skills
Entrepreneurship and initiative-taking
Intepersonal skills and empathy
Leadership and managing others
Digital skills
IT skills and programming
Scientific research and development
Technology design, engineering and
maintenance
Future Skills by Business Leaders
27%
34%
39%
54%
35%
51%
24%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Basic data input and processing
Literacy, numeracy and communication
Creativity
Critical thinking and decision making
Project management
Quantitative, analytical and statistical skills
General equipment operation, mechanical skills
Demand and Supply of Skills in New Zealand:
Today and in 3 years
Q: Which of these skillsets do you see most commonly available in the workforce today, and which do you think is most needed 3 years
from now in the AI-enabled workplace?
Numbers rounded up to the nearest %
New Zealand Businesses = N = 101 New Zealand Workers = N = 100
Skillsets defined here borrowed from the descriptions in the McKinsey Global Institute discussion paper of May 2018 titled Skill Shift: Automation and the future of the workforce
1
3
2
2
Physical
and
Manual
Skills
Higher
Cognitive
Skills
Basic
Cognitive
Skills
Technological
Skills
Social and
Emotional
Skills
Currently available
Supply > DemandDemand > Supply
1
3
13%
38%
49%
Invest more in AI
systems
Evenly on AI systems
& employee skills
Invest more in
employee skills
New Zealand
Good News: Companies are willing to invest in human capital
Bad News: They lack concrete plans
Q: Which area is your organization likely to focus its AI investments?
New Zealand Businesses = N = 101
Q: How is the organization taking steps to help employees acquire AI-
related skills?
28%
39%
25%
8%
No plans at this point
Some plans but not yet implemented
them
Started to implement some of the
plans
Developed and fully implemented a
comprehensive plan
Stage in developing an AI-ready workforce plan
New Zealand
Investment focus
Time and Lack of Understanding of Where to Start
are Key Challenges in Reskilling and Retraining
Q (Business): What are the challenges that your employees face in developing or acquiring the necessary skillsets for an AI-enabled workplace?
Q (Workers): What are the challenges that you face in developing or acquiring the necessary skillsets for an AI-enabled workplace?
New Zealand Businesses = N = 101
New Zealand Workers = N = 100
43%
32%
31%
28%
22%
18%
4%
I don’t know what courses to take
There are no suitable training programs
to take
I don’t have enough time
I do not wish to spend the money
I cannot afford the courses
I have no interest
It is too difficult for me to develop new
skills
WORKERS
New Zealand
45%
35%
34%
26%
26%
22%
20%
They don’t have enough time
There are no suitable training programs
for them to take
They do not want to spend the money
They don’t know what courses to take
They have no interest
They cannot afford the courses
It is too difficult for them to develop
new skills
BUSINESS
New Zealand
Business Leaders and Workers Have
Similar Views On Reskilling Responsibilities
Q: Who do you expect should help you acquire the skills for an AI-enabled workplace through retraining or upskilling?
New Zealand Businesses = N = 101
New Zealand Workers = N = 100
79%
64%
54%
53%
50%
My company
Educational Institutions
Myself
The industry/trade association
The government
WORKERS
New Zealand
85%
80%
60%
59%
5%
My organization
Educational Institutions
The industry/trade association
The government
Not answered
BUSINESS
New Zealand
AI Business School
Enabling an
“AI-ready” culture
Ethical
Implications of AI
in business
AI technology
101 for business
leaders
Defining an AI
strategy
AI Business School is an engaging master class series that will empower business leaders to be successful and
get results from AI:
• Gain specific, practical knowledge to define and implement your AI strategy
• Hear directly from industry experts on how to foster an “AI Ready” culture
• Learn how to use AI responsibly and with confidence
510 4 15 7
Case
studies
Academic
lectures
Practical
guides
Executive
insight videos
Technology
lectures
Thank You.

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IDC Study Commissioned by Microsoft Predicts Impact of Artificial Intelligence (AI) in NZ

  • 1. FUTURE-READY BUSINESS: ASSESSING NEW ZEALAND’S GROWTH POTENTIAL THROUGH AI
  • 2. Research Scope Workers Business leaders Sample Size for all up New Zealand 101 Business Leaders Respondents Profile 53% C & C-1 ; 47% C-2 level Organizations Sizes 46% small & mid-sized, 54% large sized C-level (i.e. CIO, COO, CEO), 26% C-1 level (i.e. VP or Director level executives), 21% C-2 level (i.e. Senior Manager), 53% <250 employees, 20% 250 – 999 employees , 34% >1,000 employees, 46% Sample Size for all up New Zealand 100 Workers Respondents Roles Verticals
  • 3. Section Title (tech adoption) ^ tech capabilities
  • 4. Section Title AI is a game changer
  • 6. Q: With the introduction of AI, what is the percentage of additional new innovative products and services your organization expect to produce today and in three years from now? Asia Pacific Business = N=1605 New Zealand Business = N = 101 22% 44% 0% 10% 20% 30% 40% 50% 60% 70% 80% Percentage of new, innovative products and services organizations produced today and in three years with the introduction of AI 2.0x AI will double the rate of innovation improvements in New Zealand Today 2021 Existing (BAU)
  • 7. AI will increase the rate of employee productivity gains in New Zealand Q: What are your organization’s key drivers for adopting AI-related solutions? Q: For the top 3 areas above, please indicate the level of improvement seen today and the expected increase in 3 years’ time Asia Pacific Business = N=1605 New Zealand Business = N = 101 26% 39% 0% 10% 20% 30% 40% 50% 60% 70% 80% Improved productivity gains among employees today and in 3 years 1.5x Today 2021 Existing (BAU)
  • 8. Q: How important is AI to your organization’s competitiveness next 3 years? New Zealand Business = N = 101 18% 30% 30% 22% Not important - Largely hype Somewhat important – Limited use cases in organizations and industries Important – Many use cases in organizations and industries Very important – Game changer for organizations and industries Importance of AI to organization’s competitiveness in next 3 years • 82% say that AI is instrumental to organization’s competitiveness in the next 3 years 21% 41% Higher competitiveness Today (2018) 3 Years (2021) • Organizations with AI in New Zealand expect it to increase their competitiveness by 2 times in 3 years 2x AI drives competitive advantages Q: What are your organization’s key drivers for adopting AI-related solutions? Q: For the top 3 areas above, please indicate the level of improvement seen today and the expected increase in 3 years’ time New Zealand Business with AI = N=52
  • 10. More than 50% of organizations in New Zealand have started on their AI journeys Q: Which of the following statements best describes your organization’s view on AI? New Zealand Business = N = 101
  • 11. 46% 17% 13% 12% 8% Better Customer Engagements Higher Margins Higher Competitiveness Accelerated Innovation Better Business Intelligence Q: What are your organization’s key drivers for adopting AI-related solutions? If your organization has not adopted AI-related solutions, what do you think would be the key drivers that would influence your organization to adopt AI-related solutions? New Zealand Business with AI = N=52 Top 5 Drivers to Adopt AI
  • 12. Q: What are your organization’s key drivers for adopting AI-related solutions? For the top 3 areas above, please indicate the level of improvement seen today and the expected increase in 3 years’ time New Zealand Business with AI = N=52 Business Improvements from AI: Today and in 3 years 2.2x 2.0x 1.9x 1.8x 1.7x 20% 21% 22% 26% 19% 43% 41% 41% 46% 33% Accelerated Innovation Higher Competitiveness Better Business Intelligence Better Customer Engagements Higher Margins Today 3 Years
  • 13. Assessing AI Readiness in Asia Pacific and New Zealand
  • 14. 0 1 2 3 4 AI Readiness Model Investments Strategy Data CultureInfrastructure Capabilities • 1: Does not consider AI as important, mainly hype • 4: Considers AI as a game changer, have made AI core part of strategy • 1: No investments or minimal spending on AI initiatives • 4: Invested to make AI an organization-wide strategy, increasing every year • 1: Risk averse, rigid siloes, and top-down decision-making culture • 4: Bottom-up innovative culture, empowered employee for agile and fast decision making; cross-unit collaboration • 1: No internal capabilities, neither for AI model development nor for solution deployment • 4: Organization-wide data estate running on cloud or hybrid with AI analytics such as robotic process automation or natural language processing • 1: Data is scattered across different departments and systems with limited access • 4: Data is accessible to all business users through an enterprise data estate with well managed quality control, access and governance services • 1: Standalone data centers with reliance on Excel as analytics tools • 4: Data is accessible to all business users through an enterprise data estate with well-managed quality control, access and governance services
  • 15. 0 1 2 3 4 Asia Pacific’s AI Readiness Investments Strategy 2.35 Culture Infrastructure Capabilities Asia Pacific needs to focus on improving its AI strategy, capabilities and infrastructure Data 2.25 2.43 2.47 2.07 2.18
  • 16. AI Readiness: Asia Pacific vs New Zealand New Zealand is ahead of Asia Pacific in terms of Investments, Data and Infrastructure, but is behind in Culture Asia Pacific Businesses = N=1605 New Zealand Businesses = N = 101 3.68 2.40 2.94 2.462.49 2.21 Investments Strategy CultureInfrastructure Capabilities Data 0 1 2 3 4 Asia Pacific New Zealand
  • 17. AI Readiness: New Zealand vs Leaders in Asia Pacific New Zealand is ahead of AI Leaders in Investments, but are behind in most areas with the widest gap in Strategy and Capabilities New Zealand Businesses = N = 101 Leaders in Asia Pacific= N = 91 0 1 2 3 4 New Zealand Leaders in Asia Pacific 3.1 3.7 3.2 2.93.1 3.0 Investments Strategy CultureInfrastructure Capabilities Data
  • 18. Q: Which of the following statements best describes your organization’s view on AI? Q: Please indicate the level of improvements seen today as a result of your AI deployment/solution. Followers = N = 1,514 Leaders = N = 91 Who are the AI Leaders in Asia Pacific? Leaders 6% Followers 94% • Incorporated AI into their core strategy or started to experiment with AI • Have experienced higher improvements of benefits from AI • Have started to experiment with AI or have not started with AI • Moderate to low improvements of benefits from AI, or no benefits
  • 19. What Makes an AI Leader Different? Followers = N = 1,514 Leaders = N = 91 5.4x 4.8x 3.7x 3.6x 3.4x
  • 20. Leaders in Asia Pacific vs Followers Leaders have a significant edge in all dimensions, especially in Strategy, Infrastructure and Capabilities. Q: What are your organization’s key drivers for adopting AI-related solutions? For the top 3 areas above, please indicate the level of improvement seen today and the expected increase in 3 years’ time Followers = N = 1,514 Leaders = N = 91 0 1 2 3 4 Strategy Investment Culture Capabilities Infrastructure Data Leader Followers 29 16 15 49 32 33 Leader Followers ALL Benefits experienced from AI (%) Improvements seen today Improvements expected in 3 years Today, leaders see 1.8x the benefits from adopting AI.
  • 22. Q: What are the top 3 challenges your organization has faced or is facing in adopting AI-enabled solutions? New Zealand Businesses = N = 101 Top AI Adoption Challenges in New Zealand: Leadership, Skills and Knowledge 31% 15% 11%
  • 23. Cultural traits required for AI adoption are lacking in New Zealand Q: Which of the following statements best describe your organization's culture and agility? (Choose from scale of 1 to 4, where 1 means that the trait is not seen at all within the organization and 4 is where the trait is pervasive across the organization) New Zealand Businesses = N = 101 New Zealand Workers = N = 100 44% 63% Business Leaders Workers 56% 55% Business Leaders Workers 45% 60% Business Leaders Workers 50% 76% Business Leaders Workers EMPOWERMENT Employees are not empowered to take risks, make decisions autonomously, and act with speed and agility INNOVATION Leadership does not encourage employees proactive innovation GOING BEYOND Employees do not take on tasks beyond job description COLLABORATION Employees are not encouraged to partner across vertical, horizontal functions and roles
  • 24. AI will augment, not displace jobs Q: How do you think AI will impact the jobs in your organization in the next 3 years? New Zealand Businesses = N = 101 New Zealand Workers = N = 100 AugmentJobs Help employees do their existing jobs better Reduce repetitive routine tasks in employee jobs Create new knowledge-based jobs for employees No impact on employees’ jobs Take over jobs and replace employees 35% 32% 16% 5% 12% 36% 19% 7% 30% 8% Business Leaders Workers
  • 25. 27% 34% 39% 54% 35% 51% 24% 38% 29% 46% 54% 35% 54% 21% 0% 10% 20% 30% 40% 50% 60% 70% 80% Basic data input and processing Literacy, numeracy and communication Creativity Critical thinking and decision making Project management Quantitative, analytical and statistical skills General equipment operation, mechanical skills 41% 40% 39% 31% 41% 60% 50% 37% 36% 52% 33% 36% 29% 30% 61% 57% 52% 55% 0% 10% 20% 30% 40% 50% 60% 70% 80% Adaptability and continuous learning Communication and negotiation skills Entrepreneurship and initiative-taking Intepersonal skills and empathy Leadership and managing others Digital skills IT skills and programming Scientific research and development Technology design, engineering and maintenance Future Skills by Business Leaders Future Skills by Workers Skills for an AI Future: New Zealand Q: Which of these skillsets do you see most commonly available in the workforce today, and which do you think is most needed 3 years from now in the AI-enabled workplace? New Zealand Businesses = N = 101 New Zealand Workers = N = 100 Numbers rounded up to the nearest % Skillsets defined here borrowed from the descriptions in the McKinsey Global Institute discussion paper of May 2018 titled Skill Shift: Automation and the future of the workforce Physical and Manual Skills Higher Cognitive Skills Basic Cognitive Skills Technological Skills Social and Emotional Skills Top Skills Demanded by Business Leaders
  • 26. 27% 34% 39% 54% 35% 51% 24% 38% 29% 46% 54% 35% 54% 21% 0% 10% 20% 30% 40% 50% 60% 70% 80% Basic data input and processing Literacy, numeracy and communication Creativity Critical thinking and decision making Project management Quantitative, analytical and statistical skills General equipment operation, mechanical skills 41% 40% 39% 31% 41% 60% 50% 37% 36% 52% 33% 36% 29% 30% 61% 57% 52% 55% 0% 10% 20% 30% 40% 50% 60% 70% 80% Adaptability and continuous learning Communication and negotiation skills Entrepreneurship and initiative-taking Intepersonal skills and empathy Leadership and managing others Digital skills IT skills and programming Scientific research and development Technology design, engineering and maintenance Future Skills by Business Leaders Future Skills by Workers Skills for an AI Future: New Zealand Q: Which of these skillsets do you see most commonly available in the workforce today, and which do you think is most needed 3 years from now in the AI-enabled workplace? New Zealand Businesses = N = 101 New Zealand Workers = N = 100 Numbers rounded up to the nearest % Skillsets defined here borrowed from the descriptions in the McKinsey Global Institute discussion paper of May 2018 titled Skill Shift: Automation and the future of the workforce Physical and Manual Skills Higher Cognitive Skills Basic Cognitive Skills Technological Skills Social and Emotional Skills Top Skills Demanded by Business LeadersBiggest Difference
  • 27. 41% 40% 39% 31% 41% 60% 50% 37% 36% 0% 10% 20% 30% 40% 50% 60% 70% 80% Adaptability and continuous learning Communication and negotiation skills Entrepreneurship and initiative-taking Intepersonal skills and empathy Leadership and managing others Digital skills IT skills and programming Scientific research and development Technology design, engineering and maintenance Future Skills by Business Leaders 27% 34% 39% 54% 35% 51% 24% 0% 10% 20% 30% 40% 50% 60% 70% 80% Basic data input and processing Literacy, numeracy and communication Creativity Critical thinking and decision making Project management Quantitative, analytical and statistical skills General equipment operation, mechanical skills Demand and Supply of Skills in New Zealand: Today and in 3 years Q: Which of these skillsets do you see most commonly available in the workforce today, and which do you think is most needed 3 years from now in the AI-enabled workplace? Numbers rounded up to the nearest % New Zealand Businesses = N = 101 New Zealand Workers = N = 100 Skillsets defined here borrowed from the descriptions in the McKinsey Global Institute discussion paper of May 2018 titled Skill Shift: Automation and the future of the workforce 1 3 2 2 Physical and Manual Skills Higher Cognitive Skills Basic Cognitive Skills Technological Skills Social and Emotional Skills Currently available Supply > DemandDemand > Supply 1 3
  • 28. 13% 38% 49% Invest more in AI systems Evenly on AI systems & employee skills Invest more in employee skills New Zealand Good News: Companies are willing to invest in human capital Bad News: They lack concrete plans Q: Which area is your organization likely to focus its AI investments? New Zealand Businesses = N = 101 Q: How is the organization taking steps to help employees acquire AI- related skills? 28% 39% 25% 8% No plans at this point Some plans but not yet implemented them Started to implement some of the plans Developed and fully implemented a comprehensive plan Stage in developing an AI-ready workforce plan New Zealand Investment focus
  • 29. Time and Lack of Understanding of Where to Start are Key Challenges in Reskilling and Retraining Q (Business): What are the challenges that your employees face in developing or acquiring the necessary skillsets for an AI-enabled workplace? Q (Workers): What are the challenges that you face in developing or acquiring the necessary skillsets for an AI-enabled workplace? New Zealand Businesses = N = 101 New Zealand Workers = N = 100 43% 32% 31% 28% 22% 18% 4% I don’t know what courses to take There are no suitable training programs to take I don’t have enough time I do not wish to spend the money I cannot afford the courses I have no interest It is too difficult for me to develop new skills WORKERS New Zealand 45% 35% 34% 26% 26% 22% 20% They don’t have enough time There are no suitable training programs for them to take They do not want to spend the money They don’t know what courses to take They have no interest They cannot afford the courses It is too difficult for them to develop new skills BUSINESS New Zealand
  • 30. Business Leaders and Workers Have Similar Views On Reskilling Responsibilities Q: Who do you expect should help you acquire the skills for an AI-enabled workplace through retraining or upskilling? New Zealand Businesses = N = 101 New Zealand Workers = N = 100 79% 64% 54% 53% 50% My company Educational Institutions Myself The industry/trade association The government WORKERS New Zealand 85% 80% 60% 59% 5% My organization Educational Institutions The industry/trade association The government Not answered BUSINESS New Zealand
  • 31. AI Business School Enabling an “AI-ready” culture Ethical Implications of AI in business AI technology 101 for business leaders Defining an AI strategy AI Business School is an engaging master class series that will empower business leaders to be successful and get results from AI: • Gain specific, practical knowledge to define and implement your AI strategy • Hear directly from industry experts on how to foster an “AI Ready” culture • Learn how to use AI responsibly and with confidence 510 4 15 7 Case studies Academic lectures Practical guides Executive insight videos Technology lectures

Editor's Notes

  1. Welcome
  2. Top 3 challenges include: Lack of thought leadership and leadership commitment to invest in AI.  It is important to remember that a change starts with the leadership at the top. And only then it propagates and really reaches the broad organization. Lack of skills, resources and continuous learning programs Lack of knowledge on how to deploy and monitor AI solutions
  3. Organizational culture is a challenge for businesses to move forward with their AI journeys. Approximately half of New Zealand’s organizations & more than half of their employees believe that the cultural traits and behaviors that contribute to AI adoption levels are not pervasive today Overall, workers are generally more skeptical than business leaders about the cultural readiness Business leaders need to address a cultural shift Leaders must now embrace a new culture, where innovation and continuous learning are core components of the organizational culture. It sets the stage for agility, adaptability and growth. Microsoft’s vision for AI is first and foremost about people. AI advancements mean that millions of people need to transform themselves into the skilled and talented learners that the future needs. AI technology cannot progress without them.  Business leaders need to be empathetic and understand that change can be unsettling. They need to lead with a vision that inspires people in every level of an organization and take responsibility for helping to re-train and reskill their teams, broadening the focus from those who had already got higher skills to encompass a much larger segment of people. Leaders have a key responsibility to provide a balanced view of AI while making sure that their leadership teams and workforce at large understand that AI is no longer a term from a Sci-Fi movie but rather a business reality. Good leaders must demystify the term for their workforce. Absolutely, they should acknowledge that AI will lead to some reduction in repetitive and transactional tasks, but at the same time help employees understand the multiple ways in which AI will augment their roles and make many jobs easier to carry out. This brings us to the very important discussion about AI impact on jobs
  4. There are some public concerns over AI’s impact on jobs. People questioned whether technology will destroy more jobs than it will create.  While of huge importance, these concerns were not shared universally around the world, especially here in Asia Pacific. For example, in nations like Japan and South Korea, where populations are starting to decline, there is better understanding that continuing economic prosperity will require productivity advances from technology to replace a declining supply of human workers. For countries like these, which will grow in number, AI offers a new solution to a societal problem. The study found that business leaders and workers in Asia Pacific believe that AI will augment jobs, not displace them: Augmentation [New Zealand] 67% of business leaders polled feel that AI will augment jobs (either help employees do their existing jobs better or reduce repetitive tasks). 55% of workers feel the same. New jobs vs replacement [New Zealand] 16% of business leaders believe that AI will create new jobs, whereas 12% of business leaders are expecting AI to replace jobs. [New Zealand] 7% of workers believe that AI will create new jobs, while 8% anticipate AI to create new ones, so net-net effect is neutral. Some workers still do not see impact of AI [New Zealand] 30% of workers actually do not see any impact of AI on their jobs in the next 3 years (which is 2 times higher than in Asia Pacific), signifying certain lack of awareness, or that they are not proactive in making a change. As AI systems evolve, we expect that AI advances will create new jobs that didn’t exist before, or that we didn’t even imagine could exist. For example, before the internet was around, no one could have predicted that there would be jobs such as cybersecurity analyst or social media manager These job market shifts are similar to the changes we’ve seen with other major technological advances, such as the invention of the telephone or the automobile. And like those changes, we expect this shift will require new ways of thinking about skills and training to ensure that workers are prepared for the future and that there is sufficient talent available for critical jobs. This leads to a conversation about skills needed for AI future
  5. The jobs of today will not be the jobs of tomorrow, and we have already seen demand for software engineering roles expand rapidly beyond just the tech sector. However, building an AI-ready workforce does not necessarily mean an acute need for technological skills. Top 3 most required skills in 3 years by business executives in New Zealand: digital skills, critical thinking and decision making, and quantitative, analytical and statistical skills. <NEXT SLIDE> +++ In Asia Pacific: The top 3 future skills business leaders are seeking out for are: Quantitative, analytical and statistical skills (51%) Digital skills (51%) Adaptability and continuous learning (49%) In addition, business leaders value social and emotional skills much more than workers expect. The biggest gaps in expectations were: Adaptability and continuous learning (7-pt diff) Leadership and managing others (7-pt diff) Communication and negotiation skills (6-pt diff) Entrepreneurship and initiative taking (6-pt diff) Interpersonal skills and empathy (5-pt diff) In fact, workers overestimate the need for programming, engineering, maintenance and R&D skills for an AI future.
  6. Soft skills vs pure technological skills: Overall, business executives believe they need more soft skills than pure technological skills, like, for example, technology design and engineering. Biggest gaps between Executives and Workers: Leadership and managing others, communication and negotiation skills, and literacy, numeracy and communication. <NEXT SLIDE>
  7. When we took a deeper look of the existing demand and supply of skills, we found that: Business leaders saw that existing supply of 1) General equipment operation, mechanical skills, 2) Literacy, numeracy and communication, and 3) Basic data input and processing, will outstrip demand in 3 years However, soft skills such as 1) Digital Skills, 2) IT skills and programming, and 3) Scientific research and development will be in shortage in the future <NEXT SLIDE>
  8. 87% of New Zealand’s businesses prioritize skilling and reskilling of workers in the future. They plan to invest in the human capital evenly or even more compared to investing in technology. However, 67% of them have yet to implement plans to train their workers This is especially worrying in New Zealand where 28% of businesses have no plans at the moment, and 39% have some plans that they haven't implemented yet.
  9. The lack of understanding, where to start and strategically allocating time for reskilling are key challenges in today’s retraining and reskilling initiatives. In New Zealand: 45% of business leaders feel that workers have no time to undergo training; and 31% of workers agree 35% of business leaders feel that there are no suitable training programs for workers to take; 32% of workers agree Business leaders were more pessimistic that workers were willing to retrain/reskill: business leaders felt that 26% had no interest, while 18% of workers had no interest
  10. In New Zealand, Majority of business leaders and workers agree that the organization/company and education institutions are responsible for helping reskills for AI More business leaders believe that education institutions should have a role in reskilling employees for AI
  11. Now let’s dive deeper into how markets and organizations can address the AI opportunity.
  12. We started off the briefing discussing about “tech intensity”. To be successful in this new world, organizations need to be a fast adopter of best in class technology; and secondly, they need to build their own unique digital capabilities
  13. Three recommendations to embrace tech intensity: Workforce trained to use technology in a productive manner: The jobs of today will not be the jobs of tomorrow, and already we have seen demand for software engineering roles expand rapidly beyond just the tech sector. Job openings for developers in non-tech industries are growing faster than in the tech industry itself. We must ensure today’s workforce and future generations have the digital skills they will increasingly need. The study showed that workers today are readier to reskill compared to what their business leaders think of them. (14% of workers think it’s too difficult, versus 20% of business leaders) Organizations have the responsibility and the urgent need to accelerate reskilling to realize the potential of Tech Intensity There is also an urgent need to close the skills gap, especially in soft skills development (i.e. adaptability and continuous learning; leadership and entrepreneurship and initiative taking.) Foster environment that encourages tech intensity: Tech companies must work in collaboration with the industry (including government entities) to ensure the technology that is adopted and built is always trusted. Broad access to connectivity to empower tools: Without connectivity, adoption of the latest state of the art technology is moot. Today connectivity is extremely variable across nations, and at current rates of adoption, universal Internet access in low-income nations won’t be achieved until 2042.
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