AI's Impact on Knowledge Work Now 'Very Visible'
The impact of AI on knowledge work is becoming "very visible," according to former Infosys CEO Vishal Sikka. He argues AI is now augmenting and even replacing higher-level cognitive tasks in fields like law and finance, and says the winners will be those who prioritize upskilling to work with AI, not against it.
Recent studies quantify the productivity boom, with professionals using AI saving an average of 7.5 hours per week. Some businesses have seen generative AI boost user productivity by an average of 66%, automating routine tasks and cutting time spent on them by up to 40%. The demand for AI-related skills has grown sevenfold in just two years, and expertise in AI is now the most sought-after specialist skill by tech employers. This demand is reflected in compensation, with an analysis of nearly a billion job ads showing workers with AI skills commanded a 56% wage premium in 2024. While fears of job replacement are common, job numbers are actually growing in most AI-exposed occupations. Research from Goldman Sachs suggests that while AI could displace 6-7% of the U.S. workforce, this impact is expected to be temporary as new roles emerge. Vanguard's research suggests AI will positively impact about 80% of all jobs in the next decade, primarily by enhancing job functions rather than eliminating them. In the legal field, AI is now used to review contracts, conduct legal research, and even predict case outcomes. One top-tier law firm reported cutting its M&A due diligence time from six weeks to just 10 days by using AI for document review. The finance sector has seen similar disruption, with AI algorithms being deployed for automated transaction monitoring, fraud detection, and regulatory compliance checks. At the fintech firm Klarna, 87% of employees now use generative AI for daily tasks in areas ranging from compliance to legal operations. A significant upskilling challenge has emerged alongside these changes. The World Economic Forum estimates that nearly six out of ten workers will require retraining before 2030, yet 68% of employees report receiving no AI training in the past year. In response, major companies like IKEA and JPMorgan Chase are rolling out firm-wide AI literacy programs. Vishal Sikka, founder of Vianai Systems, stresses that AI is not a substitute for critical thinking and that the most valuable human skills will be creativity and imagination. He also notes that AI development is highly concentrated, with only about 5,000 people globally building foundation models.
