Staggering stats illustrate the impact of AI.
With the first half of 2024 nearly over, the implementation of Artificial Intelligence (AI) technologies seems to still bring more questions than answers. As the direct selling channel continues to find ways to use AI platforms to enhance strategies, an eye must be kept on the overall impact this rapidly evolving technology is having on the job market, which will affect both corporate employees and independent distributors.
AI is projected to inject a staggering $25.6 trillion into the global economy. It’s imperative to not only recognize the potential impact but also proactively harness AI technologies to drive innovation and sustainable growth.
Insights from a report by McKinsey Digital underscore AI’s potential to automate tasks currently absorbing 60 to 70 percent of workers’ time. This revelation isn’t merely about job substitution but rather signals an opportunity to reimagine workforce dynamics. By embracing AI technologies, companies can augment their workforce; enhance operational efficiency; and unlock new levels of productivity.
The AI market is poised for exponential growth, with Statista projecting it to surpass $1 trillion by 2028. With over 25 percent of American startup investments directed toward AI-related ventures in 2023, the direct selling channel can gain a competitive edge.
Reskilling for the Future
As AI adoption accelerates, direct selling companies are navigating how to implement different applications throughout the business. According to Statista, AI adoption could necessitate the reskilling of at least 20 percent of enterprise employees, highlighting the critical importance of ongoing learning and development programs. By investing in reskilling initiatives, companies can empower their employees with the skills needed to thrive in an AI-enabled environment, fostering a culture of continuous learning and innovation.
The integration of AI extends beyond operational efficiencies into marketing strategies, as evidenced by McKinsey’s findings that 14 percent of business leaders regularly use generative AI in marketing and sales. For direct selling, AI-powered marketing automation presents a unique opportunity to enhance customer acquisition and retention strategies. By leveraging AI-driven insights, companies can personalize marketing campaigns; optimize customer engagement; and drive measurable business results. Additionally, AI technologies enable direct selling companies to harness the power of predictive analytics, allowing for more informed decision-making and targeted marketing initiatives.
Navigating Ethical and Job Loss Concerns
Ethical AI usage emerges as a major concern, with only 39 percent of US adults trusting current AI technology’s safety and security, according to Mitre. Prioritizing ethical AI practices builds trust and transparency with employees, distributors and customers. By adhering to robust ethical guidelines and ensuring data privacy and security, companies can mitigate potential risks and foster a culture of trust and accountability.
According to Forbes, 77 percent of people surveyed are concerned that AI will cause job loss in the next year, illustrating widespread concern across the entire job market. It’s a valid concern, considering the McKinsey report estimated that AI could displace 400 million workers worldwide, and that by 2030, AI-related advancements could affect close to 15 percent of the global workforce. However, research coming out of the World Economic Forum projects that AI technologies will also create around 97 million new jobs.
From the May 2024 issue of Direct Selling News magazine.
