From pyramids to hourglasses: AI can transform Indian workplaces

The Hourglass Model

• AI is replacing the traditional pyramid model in Indian companies, focusing on coordination and decision-making.

• The middle level, once filled with managers, is reduced as AI handles schedules, tracks performance, and crunches data for decisions.

• AI systems team up with frontline workers, specialists, and AI systems to get the job done more efficiently.

• This model is expected to boost productivity by up to 25% when adopted by firms.

India’s Response

• Despite being a hub for AI innovation, India ranks 72nd on the International Monetary Fund’s AI Preparedness Index.

• The lag is due to uneven infrastructure and a cultural lean towards hierarchy.

• Indian firms are testing the hourglass with a hybrid approach, using AI to predict buying trends and streamline delivery kinks.

Benefits of AI Blending

• Efficiency: AI can forecast fabric demand, slash waste, and boost profits.

• Innovation: AI tools speed up coding for tech firms, freeing staff to come up with new solutions.

• Flexibility: AI can help pharmaceutical companies navigate supply chain chaos during the pandemic.

• Customer and Employee Experiences: 24/7 chatbots and payroll automation free up staff duties.

• New Roles: AI experts and data ethicists, with demand set to hit 1.25 million by 2027.

Challenges

• Jobs may be at risk, especially for middle managers and the less skilled.

• Ethics: AI can stumble with bad data and lack transparency.

• Infrastructure: AI’s reach is cramped due to 65% of Indians in rural areas and many offline.

• Culture: The love for hierarchy jars with the hourglass push.

Recommendations

• Start with reskilling, adopt a hybrid model, lay down ethical guidelines, and team up with Western firms.

• AI is a journey, not a fix; track cyber risks and regulatory shifts.