Navigating the Future of Work with Generative AI: Opportunities, Risks, and Strategies for Success

Generative AI is a powerful tool that is changing the way we work, from recruiting to performance management to professional growth. In a recent episode of the McKinsey Talks Talent podcast, talent leaders Bryan Hancock and Bill Schaninger discussed the promise and pitfalls of using generative AI in HR with McKinsey Technology Council chair Lareina Yee and global editorial director Lucia Rahilly.

Generative AI, such as ChatGPT, has seen rapid adoption since its release, with the ability to prompt the next best answer in a variety of tasks. This technology is accessible to everyone, regardless of age, education level, or country, and can be used in all types of jobs. It has the potential to reshape recruiting by helping managers write better job requirements and personalize candidate outreach. Additionally, it can accelerate the shift from credential-based recruiting to skills-based recruiting.

Generative AI also has the potential to aid in professional growth by helping individuals explore career paths, identify learning opportunities, and improve their skills. It can be particularly beneficial for new workers in getting them up to speed more quickly.

In the realm of performance reviews, generative AI can assist evaluators in synthesizing feedback and help employees map out their professional development. However, it is important to remember that human judgment is still essential in these processes.

While generative AI offers many benefits, there are also risks to consider, such as the amplification of biases and the potential for individuals to become less interesting or creative. Leaders must think about risk up front in the workflow design and ensure that the technology does not get in the way of the human element in HR processes.

To prepare for the changes that generative AI will bring, individuals can start by learning and playing with the technology. Leaders have a crucial role to play in modernizing talent capabilities within their organizations and ensuring that generative AI is used to enhance, not replace, human decision-making.

Overall, generative AI has the potential to revolutionize HR processes and improve access to opportunities for employees. By embracing this technology thoughtfully and strategically, organizations can unlock new possibilities for talent management and professional growth.