Human intelligence and the talent pyramid in the age of AI

<p><b>Embracing AI’s potential without hollowing out the talent base will require a balanced, proactive approach.</b></p>

<p>An acquaintance who’s a partner in a law firm was telling me recently about a professional meeting. “It was amazing to see the kind of results junior legal analysts, fresh out of school, were able to prepare,” he said. But he was far less impressed after an in-person meeting; when he sat across the table from the young analysts, “their understanding of their own document was limiting.”</p> <p>Naturally, they had prepared the document using AI. My acquaintance shook his head. “Is the machine more intelligent now?” He was joining an incendiary debate about talent sustainability, which is central to long-term economic progress. His candid insights expose a critical challenge confronting organizations as they embrace artificial intelligence.</p> <p>For business leaders, the allure of AI is undeniable; it promises significant cost reduction, enhanced efficiency and improved effectiveness. It’s highly attractive to automate or even eliminate certain foundational layers of the organizational pyramid.</p> <p>Yet in doing so, are we inadvertently robbing our junior talent of crucial learning curve opportunities, preventing them from maturing into seasoned professionals? Furthermore, if organizational structures become diamond-shaped—heavy in the middle but hollowed out at the base—they often bloat costs over time, potentially eroding, some if not all, the very financial advantages AI was expected to deliver.</p> <h4>The brain drain: Insights from the MIT Media Lab</h4> <p>The risk of stunting the learning curve is just one facet of this complex issue. Another was highlighted recently by&nbsp;<a href="https://www.media.mit.edu/articles/a-i-s-effects-on-the-brain/" target="_blank" rel="noopener noreferrer">research</a>&nbsp;on the detrimental effects of excessive AI reliance on human cognition, creativity and learning. In a 2025 MIT Media Lab study, participants who relied solely on AI to write essays showed&nbsp;significantly lower brain activity and memory recall&nbsp;than those who used search engines or wrote without any tools.</p> <p>Moreover, when participants using AI stopped doing so, their&nbsp;neural connectivity remained weaker&nbsp;than those who had consistently written without assistance—and the reverse was true as well.</p> <p>Finally, researchers found that participants who used AI throughout the writing process were less likely to feel a sense of ownership—that the work was truly theirs.</p> <h4>The empathy gap</h4> <p>Yet another significant concern is the potential for organizations to become disconnected from their customers if frontline staff, such as customer service agents, are replaced by AI.</p> <p>In early 2024,&nbsp;<a href="https://www.klarna.com/us/" target="_blank" rel="noopener noreferrer">Klarna</a>, a Swedish fintech, announced the deployment of an AI assistant, built in partnership with OpenAI, that could handle the equivalent workload of 700 human agents. While initially lauded for its efficiency, the system soon produced a backlash. CEO Sebastian Siemiatkowski admitted that while the AI achieved impressive metrics, it led to a “loss of empathy” and a reduction in the “human touch” that is vital for genuine customer connection. The fiasco forced Klarna to delay its planned IPO and double down on its human workforce to restore service quality.</p> <p>The loss of empathy isn’t merely a touchy-feely concern; it has profound strategic implications. If organizations are driven further away from their customers, does that also diminish their collective ability to foster innovative thinking on how to better serve their clientele? True customer understanding, often gleaned from the nuanced interactions of frontline staff, is a wellspring of innovation.</p> <p>Could the short-term gains promised by AI incur a hidden long-term debt for enterprises? If organizations foster an environment in which critical and creative thinking are diminished due to over-reliance on AI, it will inevitably lead to reduced competitiveness. Can we truly afford to make people less intelligent, less empathetic and less capable of independent thought? These are not mere academic questions; they are pressing concerns that will profoundly shape the future of talent, organizations and indeed society at large.</p> <h4>Getting out in front of a potential problem</h4> <p>While I am a firm believer in the transformative potential of AI for both businesses and humanity, the concerns we’ve raised require proactive solutions. As we design for AI-driven change, it’s crucial to put these issues front and center. The law firm we discussed earlier, for example, is currently debating a policy to restrict AI use for its most junior staff. The reasoning is that young legal analysts need two or three years to develop their skills “using only their brains.”</p> <p>While policy decisions like this are understandable, not all companies can afford to enforce them. Such restrictions could hinder or delay an organization’s ability to compete in an increasingly AI-driven landscape. Fortunately there are proactive strategies, presented below, that allow companies to harness AI’s power while ensuring continuous employee development. These solutions, ironically, use AI to solve a problem created by AI itself.</p> <ul> <li><b>AI-powered accelerated and simulated training.</b>&nbsp;The learning and development industry is being revolutionized by AI. Hyper-personalized, multimodal training paths can leverage AI to create realistic simulations of real-world experiences. Even if AI agents handle business operations in the real world, these simulations allow employees to experience and accelerate their learning curve in a controlled environment, ensuring that vital skills are still developed.<br> <br> </li> <li><b>AI tools with learning and study modes.</b>&nbsp;Many AI tools are now designed with specific “learning” or “study” modes. In these modes, the AI doesn’t fully automate tasks but rather facilitates the process, guiding users and ensuring active learning. Recent announcements from platforms like ChatGPT and Claude highlight this trend, offering features specifically tailored for the learning and training industry. These modes can enable employees to engage with AI as a learning partner, fostering skill development rather than dependence.<br> <br> </li> <li><b>Regular auditing and adjustment of AI deployments.</b>&nbsp;To ensure that AI deployments are positively impacting employee development, customer experience and organizational culture, regular audits are crucial. Organizations should establish cross-functional review teams to assess these impacts. This proactive monitoring can help identify and address unintended consequences, such as the loss of empathy observed at Klarna, allowing for timely adjustments to AI integration strategies.</li> </ul> <h4>Looking ahead</h4> <p>Embracing AI’s potential while mitigating its risks requires a balanced and proactive approach. By strategically blending policy decisions with AI-powered approaches recommended above, organizations can empower their talent, accelerate learning and foster a competitive edge in the age of AI. The question is not whether to integrate AI, but how to do so in a way that cultivates growth and prepares the workforce for the future.</p> <p>&nbsp;</p>