Trained A-Eye
Dear classmates, welcome to class! We explored how AI supports individuals, strengthens organizations, and shapes culture. Now let’s talk about the most powerful influence by far: the workforce itself. this week’s business strategy classwe step into the boardroom and explore how generative AI is reshaping careers, skill sets, and the future of work. Change is here, and while it may feel uncertain, it’s also very exciting. The question is: How do we transform ourselves with AI?
This week’s lesson is once again inspired by my brilliant teaching friends Chris Snyder and Christopher Porter, innovation professors who founded the AI Summer School. A series highlighting how AI adoption impacts both individuals and systems. Innovation professors brought to my attention a recent study from Stanford University on the AI workforce. The study titled Canary in the coal mine? 6 facts about artificial intelligence’s recent employment impactexamines how AI adoption is impacting entry-level workers, particularly those aged 22 to 25. The result?Employment of early-career professionals in roles most exposed to automation fell by 13%. Yes, it’s plain, but not hopeless. For leaders, educators, and employers, we are building a strategic roadmap on how to respond.
Automation vs. Augmentation: Two Paths, Two Outcomes
A Stanford University study highlights the essential difference between automation and scaling. Simply put, it will be replaced by automation. Augmentation strengthens. Jobs that rely on repetitive processes and predictable workflows found in the workers’ compensation industry, such as data entry, transcription, and entry-level coding, are the most vulnerable to automation. Roles that rely on communication, creativity, and critical thinking remain stable. Yay, workers’ compensation! Indeed, job growth remains strong in environments where AI is used to augment, rather than replace, human work.
Hello? Are you with me? This is how you can enhance your workers’ compensation experience, including adjusters, human resources, and risk management. AI tools can automate claims summaries, generate initial reports, and analyze data trends. What can’t they do? Replicate empathy, advocacy, or relationship building that demonstrates social acumen and integrity. Think reliability. That’s why the future of our field lies in enhancing talent, not replacing it. The smartest organizations deploy AI to eliminate administrative friction and empower experts to listen, guide, and connect by focusing on the human heart of the case. Automation handles the process. Purpose of capacity building.
Codified knowledge and tacit knowledge
Another powerful insight from the Stanford research lies in the difference between codified and tacit knowledge. Coded knowledge is what you can learn from textbooks, manuals, and courses, such as “what” and “how.” Tacit knowledge is something you learn by doing, and is an implicit intuition built through experience, relationships, and repetition. AI is good at absorbing systemized knowledge. Summarize laws, interpret trends, and create technical explanations instantly. However, tacit knowledge, a “feel” for conversations, instincts for timing, and judgment in complex cases remain uniquely human. This explains why entry-level workers (who have primarily codified knowledge) are more affected by automation than experienced professionals. Over time, as people develop tacit understandings, their work becomes harder to replace.
This insight is valuable for workers’ compensation. We need to build programs that help employees move quickly from knowledge-based to wisdom-based work. This is where the human element and emotional intelligence become more important. how? By creating pipelines of mentorship, experiential learning opportunities, and reflective practices that foster judgment. We need to focus on training these skills, as well as empathy and adaptability, which currently cannot be replicated by AI. We’ve had to become more human for a long time, and now we have to do it or let AI do it. And frankly, maybe this is the change we need to ground ourselves in the reality of what it really means to be human and care about people.
Human advantages: experience, empathy, adaptability.
AI has the potential to disrupt entry-level roles, but at the same time enhance the value of higher-level human capabilities. The most sought-after professionals are those who can think critically, communicate clearly, and adapt quickly. In other words, soft skills have become strategic skills. For the workers’ compensation ecosystem, this means adjusters who can interpret both data and emotion, human resources professionals who can balance compliance and compassion, and safety leaders who can translate analysis into cultural action. These are skills we’ve been talking about for decades. Just as AI handles technical tasks, humans need to handle relational tasks. The claims process of the future will be more personal, guided by experts who understand how to use technology. andHow to talk to humans. The ultimate human advantage lies in rethinking how to overcome it.
How can leaders respond strategically?
The Stanford University study focuses on workforce disruption and also provides a blueprint for leaders looking to build resilience in their organizations. Here are some strategic moves to consider.
1. Redesign entry-level roles as learning labs.
Early career positions emphasize guided learning rather than rote execution. Pair employees with mentors, assign them to AI-backed projects, and rotate them across departments to create a balanced, cross-functional experience.
2. Invest in experiential learning.
Encourage internships, simulation-based training, and shadowing programs that expose employees to real-world decisions. The more experience you gain early on, the faster the transition from codified knowledge to tacit knowledge.
3. Reframe AI as a collaborator, not a competitor.
Train your team to use AI tools as co-pilot to brainstorm, organize, and validate ideas instead of a silent judge. This change in mindset transforms anxiety into action.
4. Audit your job ladder.
Rethink career progression paths to ensure employees have opportunities to grow into roles that rely on strategic, people-centered skills. Build bridges upwards, not barriers.
Impact on workers’ compensation
In our industry, the future of AI-driven transformation lies in the evolution of jobs rather than the loss of jobs. Yes, repetitive administrative roles may shrink, but new roles will emerge, such as data translators, compliance technicians, and empathy-driven communicators who bridge the gap between system and soul. We need experts who can interpret the output of AI and contextualize it through the lens of humanity.
Employers and carriers can start by reshaping their workforce development strategies around three principles:Re-skill, re-imagine and sustain. reskill Empower your employees to use AI responsibly and creatively.reconsider How roles will evolve as automation increases.retention We develop great people by providing purpose-driven work that engages both the heart and the intellect. Think of AI as an ally of workforce renewal rather than reduction, opening the door to a more balanced, innovative, and fulfilling future.
The big picture: From destruction to design
With every technological leap throughout history, the working environment has changed forever. This is unique in that it is cognitive. It challenges how we think, learn and work. Researchers at Stanford University call young workers “canaries in the coal mine,” and I think of them this way:frontier pioneer . Their experiences reveal what we all must prepare for: a future where value lies in how we interpret, connect, and create. AI will continue to change the nature of entry-level work, requiring leaders to design better systems for learning and growth. Your future workforce will thrive because you’ve built an organization where people feel ready to evolve accordingly.
Class take-out
AI is the evolution of work. The Stanford University study reminds us that the key to resilience leans toward scaling by helping people grow in ways that machines cannot. In workers’ compensation, that means fostering communication, empathy, and critical thinking along with technology. Successful organizations are those that get AI right.Capability creation toolsTo make our employees shine. We still have a long way to go before we can remove redundant automated processes and become human-centric first..
Your homework:Look at entry-level roles in your organization. Think about how you can make each one a starting point for learning, rather than a checklist of tasks. Identify where exposure to AI can turn into empowerment through mentorship, reflection, and human development. The future is here and we’re hiring!
The class has been dismissed.
next week:Philosophy Class – Path to AGI
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