If I asked you when a step change in productivity occurred in our history, what would you say?

Chances are your mind might jump to the Model T assembly line of the 1900s, the rise of fast-food service in the 1950s, or, perhaps most likely, to the very item you are using to read this piece right now: the personal computer and smart phone revolutions of the 1990s and 2000s. While these are apt examples, what’s often overlooked is that behind all these innovations were likely to-do lists. Yes, that very list you scratch off or keep always running in the back of your mind.

From Benjamin Franklin to gen AI

In fact, if we go even further back to the 1790s, we’ll find the first iterations of to-do lists were in the visionary inventor Benjamin Franklin’s daily schedule of mundane tasks, estate planning items and his list of virtues and affirmations in his autobiography. While he may not have invented the to-do list, he is often regarded as an incredibly disciplined innovator who popularized this productivity tactic for self-improvement. This approach was later scaled and digitized with computers in the corporate world and likely served as a blueprint for pioneers like Henry Ford and Richard and Maurice McDonald to shape their businesses with growth, scale and productivity at the center.

The new definition of productivity

Years ago, when I talked to CEOs and other business leaders about how to create the financial capacity to drive growth, the conversation often centered on cost management. Questions included: Where can we increase efficiency? Is there a way to save costs in our facilities? Are we duplicating work or workers? Another frequently asked question was if a zero-based approach should be employed.

That strategy worked for a long time, but today’s conversations are shifting. Leaders now consider cost inputs as one part of a bigger equation. An increasingly important consideration is productivity growth, typically realized through a combination of cost efficiency (or cost per unit) and effectiveness (the ability to generate the output), and in today’s age of rapid technology-led disruption, multiplied by generative AI. In fact, tech, data and AI, especially gen AI, are driving a reinvention of work, a reskilling of the worker and a reimagination of the workforce. These changes are revamping ways of working, much like the to-do list helped unleash double-digit productivity gains for centuries, until the past two decades.

How gen AI can be the multiplier to productivity

One thing not on any to-do list, until recently, has been gen AI and its potential as a productivity multiplier. However, that all changed in the past two years. Now, nearly all (86%) leaders feel prepared to up their investment in gen AI this year, with almost a quarter (23%) planning to use that investment in Strategy and mergers and acquisitions.

Our analysis indicates that gen AI can impact more than 44% of working hours. Taking that a step further, we wanted to understand the two ways in which gen AI could impact tasks and quantify that in terms of financial performance. Our modeling identified two types of impact: time saved at 12.5%, and quality improvements in the task output at 8.5%. While the former is important, the latter is where gen AI can significantly drive productivity growth and ultimately competitiveness.

The to-do list for today’s leaders

Franklin opened his daily schedules with the question, “What good shall I do this day?” That is an important question for us to ask not just as individuals in our daily lives, but as business and industry leaders. Growing strategically and sustainably requires a plan. It needs a strategy, and it needs a focus.

While I may not fully agree with Franklin’s belief that the decision to make a plan matters more than the plan’s contents, I often think of his famous saying, “If you fail to plan, you are planning to fail!” when speaking with other leaders.

Conclusion

Put simply, companies can replicate their peers’ growth by investing for the future and using gen AI to amplify their efforts. We’re already seeing leading productivity companies that, while increasing costs by an average of 6%, are increasing revenues by 7%.

Frequently Asked Questions

Q: What is the key to leveraging gen AI to its fullest extent?

A: Putting people at the center is the key to leveraging gen AI. High-productivity companies are a third (33%) more likely to prioritize ongoing training and upskilling, recognizing that tasks with high-quality improvements require deeper human involvement.

Q: What is the importance of investing in gen AI?

A: Nearly all (86%) leaders feel prepared to up their investment in gen AI this year, with almost a quarter (23%) planning to use that investment in Strategy and mergers and acquisitions.

Q: What is the potential impact of gen AI on productivity?

A: Gen AI can impact more than 44% of working hours, with time saved at 12.5% and quality improvements in the task output at 8.5%.