The Future Of Work Is Human-Led And AI-Powered

Introduction to the Future of Work

I keep hearing statements such as: AI is going to affect everyone’s job, and AI will be doing what most of us are doing now. And understandably, that’s making a lot of people anxious. So, what is the role of people in this new world we’re moving into? I have a different view. These widespread statements about millions of jobs being lost are, frankly, somewhat misleading.

Productivity and Standard of Living

First, we must remember that our standard of living, in any country, is directly linked to productivity. Historically, as agriculture and manufacturing were mechanized, we shifted to white-collar work. However, unlike earlier transformations, we’ve seen surprisingly little productivity gain in the white-collar workspace over the past few decades. What I believe AI – especially Agentic AI – now offers is the missing productivity breakthrough in white-collar domains. In this case, some people may lose or need to change jobs. That’s disruption. But we’ve seen this before. From a societal and economic standpoint, this kind of disruption leads to increased wealth and a higher standard of living.

Most economists agree that a 3% increase in productivity per year generates profound societal benefits. Yet recently, we’ve only averaged about 1–1.5%, and most of that growth hasn’t come from white-collar work. As more of our economy becomes white-collar driven, our ability to generate meaningful productivity gains has been constrained. AI offers a path to change that.

AI and the Future of Work

When we talk about job losses, what we’re really talking about is a dramatic increase in white-collar productivity. And that’s good news. Because ultimately, it raises our collective standard of living. We often hear the terms "AI in the loop" or "people in the loop." This means that individuals will increasingly use AI tools, such as ChatGPT and OpenAI products, or numerous others, to perform their work more effectively. When we become more productive, fewer people are needed to do the same tasks. However, here’s the part that often gets overlooked: historically, productivity gains have led to an expansion in the volume and scope of work, not a net reduction. This means that companies can take on more work, new kinds of jobs and tasks appear, and the overall volume and complexity of work grows.

From a tools perspective, we should welcome AI. And whether we welcome it or not, it’s coming. The key question is how we can use these tools in the most productive way. AI clearly promises a substantial step forward in productivity and effectiveness.

A Rising Tide for Labor

More productive people get paid more, always. It might take time for compensation to catch up, but history has shown that labor captures a significant share of productivity gains. That’s how we see rising standards of living outpace inflation over time. Inflation is the result of too much money chasing too few goods. AI increases the availability of goods, including services, which are the dominant part of our economy. That’s why AI-driven productivity is inflation-counteracting, not inflation-inducing.

There’s also the unsettling possibility of AI directly replacing human workers. In a previous blog, I talked about AI as a reinvention vehicle. In many areas, AI can drive the creation of Systems of Execution that replace a significant proportion of people in business functions, sometimes by as much as 40% to 80%. And yes, that sounds alarming. But here’s the part I think many miss: the real-world impact can be counterintuitive. For example, IBM recently reduced roles in areas where AI could automate repetitive tasks, but it also ramped up hiring in high-growth functions. Why? Because as AI drives productivity in one part of the business, it can unlock capacity to invest in others. That’s the point; this isn’t a zero-sum game. As the economy expands, more jobs are created.

The Rise of Integrative Work

But the question I think everyone is wondering is, what do those new jobs actually look like? There was an article written several years ago that described outsourcing as creating "human robots." The idea was that work, once offshored, was broken down into a set of standard operating procedures (SOPs), and people were expected to follow these rote steps without deviation. But no one really wants to be a human robot. This kind of work can be monotonous and unfulfilling. AI can now take over those human-robot tasks.

What will be left for people to do? We will be providing direction, offering human judgment. We’ll gather insight from Agentic AI systems, but we will guide what should happen next. This requires integrative skills, a deep understanding of context, and the ability to connect the dots. People will be given more agency and greater responsibility for end-to-end outcomes, not just individual tasks. In effect, AI won’t take away our agency; it will demand more of it.

This opens up important questions about how we prepare ourselves and our children for this future. We may need to shift focus from memorizing steps to building systems-level thinking. Less about formulas. More about meaning, decisions, and context.

Reimagining Functional Roles

Let’s consider applying this to a business function, such as procurement. Instead of focusing on how to buy something, we’ll spend more time considering what we should be buying and why. In HR, most executives would rather be helping people grow than dealing with payroll or benefits processing. AI will absorb many of these routine, administrative tasks, freeing up human capacity for more meaningful work, the very reason most people entered HR in the first place.

That’s where I believe we’re headed: more agency, more strategic, integrative thinking, and more say in the consequences of decisions. Less focus on mechanics. More focus on judgment.

A More Empowered Future of Work

The question isn’t whether AI will change the nature of work, it already is. The real question is how we will respond. There will be disruption. Those who are in procedural roles today may struggle. Some will need to reskill – a painful but necessary transition.

The best we can do is help as many people as possible transition into this new world. And those who run into the future have the potential to have far more interesting, meaningful work with far more opportunity, because people inevitably want more things and more services.

Everyone wants more agency. Everyone wants to be more in control. And in general, I believe this is exactly what AI promises to do for us.

Conclusion

In conclusion, the future of work is human-led and AI-powered. While AI may replace some jobs, it will also create new ones and increase productivity, leading to a higher standard of living. As AI takes over routine tasks, humans will be freed up to focus on more strategic and integrative work, requiring more agency and judgment. It’s essential to prepare ourselves and our children for this future by shifting focus from memorizing steps to building systems-level thinking.

FAQs

Q: Will AI replace human workers?
A: AI may replace some jobs, but it will also create new ones and increase productivity, leading to a higher standard of living.
Q: What kind of work will be left for humans to do?
A: Humans will be providing direction, offering human judgment, and guiding what should happen next, requiring integrative skills and a deep understanding of context.
Q: How can we prepare ourselves for this future?
A: We need to shift focus from memorizing steps to building systems-level thinking, and help as many people as possible transition into this new world.
Q: Will AI lead to inflation?
A: AI-driven productivity is inflation-counteracting, not inflation-inducing, as it increases the availability of goods and services.
Q: What is the role of AI in the future of work?
A: AI will absorb many routine, administrative tasks, freeing up human capacity for more meaningful work, and will demand more agency and judgment from humans.