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Meg Bear's avatar

when you are in traffic - you ARE traffic. We have more agency than we realize but we have to see it, thanks Jess for helping people recognize what is happening. I would add one more point at the leadership lens of this topic and that is value creation vs. value extraction. Similar to the question of augmentation on purpose (when/where/why) we should ALSO be looking for value creation opportunities that grow new opportunities for both the business AND AI augmentation.

John Hinojos's avatar

Jess,

Thanks again for the analysis. Great job.

One of my major concerns with executives who look at staff reduction is that they look at areas AI can replace, but they are not considering their customers.

Due to a medical issue, I have to have supplies sent to me. I usually have to order every 3 to 4 months. They have been rolling out AI recently. I called to place an order. The order was delivered. The order was wrong and was not the product my doctor had authorized. I used to be able to talk to someone at customer service almost immediately. Now it took over 2 hours, and they had to call me back. The first call back never happened and I had to call a second time.

I do not know if my shipment got sent to someone else (they do not seem to have the technology to track that). I do not know if my personal information, which is on the order packing slip, was sent to someone else. This would be a violation of HIPAA. They seem to have the technology to make me wait to get to a person, but not to track things not been done correctly. I have filed a complaint to my medical provider about their lack of service.

Executives are forgetting that all the cost savings could come at their own reputation. I have watched countless numbers of companies go out of business when they look entirely at staff cost and not what that cost provides to the customer.

I live near the ocean, and I view AI implementation like the waves of the ocean. Those AI implementations done correctly and with staff and customers in mind are like the gentle movement of the waves. Coming onto the shore and providing nourishment. Those done without a big picture or research on customer impact are like a tsunami after an earthquake. It rushes in covering everything and then swoops back out to sea taking good and bad with it. What is left is destruction.

After reading your article, I decided to research Block and see their customer satisfaction online. Before their staff reduction was done the overall view was mixed but tended toward the positive. After they reduced their numbers, customer support appears to have been impacted negatively. People say the product is not as good, difficult to use, and poor customer service. Yes, their stock prices are up and they showed a profit for the first quarter after their RIF; however, long-term impacts do not show up in a quarter. Many people are on contracts which may only renew annually. The true impact of their move will not be known for 9 more months.

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