g-f(2)2428 Navigating the AI-Driven Labor Shift: Europe and the U.S. Race to Upskill

 

genioux Fact post by Fernando Machuca and Perplexity

Introduction

The McKinsey Global Institute's report "A new future of work: The race to deploy AI and raise skills in Europe and beyond" delves into the profound shifts in labor demand driven by the accelerating adoption of artificial intelligence (AI) and automation technologies, as well as other transformative trends. This analysis sheds light on the urgent need for businesses, workers, and policymakers to prioritize skills development and occupational transitions to keep pace with the rapidly changing workforce landscape.

genioux GK Nugget

"The deployment of AI and automation technologies, coupled with other trends like the net-zero transition and aging populations, is reshaping labor demand, necessitating up to 12 million occupational transitions in Europe and the United States by 2030 to bridge emerging skills gaps." — Fernando Machuca and Perplexity, May 25, 2024

genioux Foundational Fact

The article highlights that by 2030, under a midpoint adoption scenario, up to 30% of current work hours could be automated, driven by the accelerated capabilities of generative AI. This shift in labor demand will require significant skills upgrades, with rising demand for technological skills as well as social and emotional skills like critical thinking and creativity, which are currently in short supply across many industries and regions.

The 10 Most Relevant genioux Facts

1. Demand for occupations like health professionals and STEM-related roles could grow by 17-30% between 2022-2030, while demand declines for office workers, production workers, and customer service representatives.
2. Lower-wage occupations face bigger challenges, as demand reweights toward higher-wage roles, risking further labor market polarization without reskilling efforts.
3. Companies plan to prioritize retraining over hiring or subcontracting to meet new skill needs, underscoring the importance of upskilling existing workforces.
4. The net-zero transition, aging populations, e-commerce growth, and infrastructure spending are among the other trends reshaping labor demand alongside AI and automation.
5. Europe may require up to 12 million occupational transitions by 2030, double the pre-pandemic pace, to align with changing workforce needs.
6. The United States could see almost 12 million occupational transitions by 2030 due to the impact of AI, automation, and other labor trends.
7. Generative AI capabilities are accelerating the pace of automation, with potential to automate up to 30% of current work hours by 2030 in a midpoint adoption scenario.
8. There is a major need for skills upgrades, with rising demand for technological skills as well as social/emotional skills like critical thinking and creativity that are currently in short supply.
9. Lower-wage occupations face bigger challenges in the transition, as demand reweights toward higher-wage roles requiring more advanced skills.
10. Businesses and workers will need to prioritize skills development and occupational transitions to keep pace with the changing demands of the future workforce.

Conclusion

The McKinsey Global Institute's analysis underscores the urgency of addressing the seismic shifts in labor demand driven by the deployment of AI, automation, and other transformative trends. With up to 12 million occupational transitions projected in Europe and the United States by 2030, businesses, workers, and policymakers must prioritize skills development and reskilling initiatives to bridge emerging gaps and align workforces with the evolving needs of the future. Failure to do so risks further labor market polarization and a widening divide between those equipped with the necessary skills and those left behind. Embracing this challenge presents an opportunity to harness the potential of AI and automation while fostering a more resilient, adaptable, and equitable workforce for the digital age.

REFERENCES

The g-f GK Context

Eric Hazan, Anu Madgavkar, Michael Chui, Sven Smit, Dana Maor, Gurneet Singh Dandona, and Roland Huyghues-Despointes, A new future of work: The race to deploy AI and raise skills in Europe and beyond, The McKinsey Global Institute, May 21, 2024.

ABOUT THE AUTHOR(S)

Eric Hazan is a McKinsey senior partner based in Paris; Anu Madgavkar and Michael Chui are McKinsey Global Institute partners based in New Jersey and San Francisco, respectively; Sven Smit is chair of the McKinsey Global Institute and a McKinsey senior partner based in Amsterdam; Dana Maor is a McKinsey senior partner based in Tel Aviv; Gurneet Singh Dandona is an associate partner and a senior expert based in New York; and Roland Huyghues-Despointes is a consultant based in Paris.

Classical Summary

Here is a summary of the McKinsey Global Institute article "A new future of work: The race to deploy AI and raise skills in Europe and beyond":

The article examines how Europe and the United States face significant shifts in labor demand driven by the adoption of AI and automation technologies, as well as other trends like the net-zero transition, aging populations, e-commerce growth, and infrastructure spending. 

Key findings include:

• Demand for occupations like health professionals and STEM-related roles could grow by 17-30% between 2022-2030, while demand declines for office workers, production workers, and customer service representatives.
• Up to 30% of current work hours could be automated by 2030 in a midpoint adoption scenario, accelerated by generative AI capabilities.
• Europe may require up to 12 million occupational transitions by 2030, double the pre-pandemic pace. The U.S. could see almost 12 million transitions.
• There will be a major need for skills upgrades, with rising demand for technological skills as well as social/emotional skills like critical thinking and creativity that are currently in short supply.
• Lower-wage occupations face bigger challenges, as demand reweights toward higher-wage roles. This risks further labor market polarization without reskilling.
• Companies plan to prioritize retraining over hiring/subcontracting to meet new skill needs.

The analysis highlights how AI and automation, along with other labor trends, are rapidly reshaping workforce needs. Businesses and workers will need to prioritize skills development to keep pace with changing demands.

Citations:

[1] https://blog.geniouxfacts.com/2024/05/g-f22427-bridging-knowledge-chasms.html

[2] https://www.mckinsey.com/mgi/overview

[3] https://www.mckinsey.com/featured-insights

[4] https://www.mckinsey.com/mgi/our-research/a-new-future-of-work-the-race-to-deploy-ai-and-raise-skills-in-europe-and-beyond

[5] https://www.mckinsey.com/featured-insights/future-of-work

Eric Hazan

Here is a biography of Eric Hazan, a senior partner at McKinsey & Company based in Paris:

Eric Hazan is a Senior Partner at McKinsey & Company's Paris office. At the European level, he is among the leaders of the firm's Growth, Marketing & Sales and Digital & Analytics practices.[2]

He primarily advises European companies in the retail, consumer goods, and technology sectors on their most critical business issues, particularly in marketing and strategy. Hazan leverages the latest tools, especially digital ones, to help his clients achieve sustainable growth. He also serves investment funds and advises governments on their digital challenges.[2]

As a member of the steering committee of the McKinsey Global Institute (MGI), McKinsey's economic think tank, Hazan has contributed to numerous research programs. In this capacity, he has led several studies on artificial intelligence and generative AI, the metaverse, the future of work, and using technology for the greater good (Tech for Good). He is a co-author of several reports on the impact of the internet and ICT on the economy.[2]

Prior to joining McKinsey, Hazan was a Senior Partner at Arthur D. Little (ADL), where he led the global TIME (telecommunications, internet, media, and entertainment) practice as well as the Retail/Consumer practice.[2][4] 

Hazan began his career in marketing and sales of consumer goods at Kraft Jacobs Suchard and Danone.[2]

He holds a degree from HEC Paris, where he is a professor of business strategy. He also teaches digital strategy at Sciences Po.[2]

Hazan is the Global co-leader of McKinsey's Strategy & Corporate Finance practice.[3][5] He is based in Paris and serves on the Centre for Economic Policy Research (CEPR) council.[4]

Citations:

[1] https://blog.geniouxfacts.com/2024/05/g-f22427-bridging-knowledge-chasms.html

[2] https://www.mckinsey.com/our-people/eric-hazan/fr-FR

[3] https://www.linkedin.com/in/hazaneric/

[4] https://cepr.org/about/people/eric-hazan

[5] https://fr.linkedin.com/in/hazaneric/fr

Anu Madgavkar

Here is a biography of Anu Madgavkar, a McKinsey Global Institute Partner based in New Jersey:

Anu Madgavkar is a Partner at the McKinsey Global Institute (MGI), the business and economics research arm of McKinsey & Company. Based in New Jersey, she leads global research focused on several key areas including labor markets and human capital, technology's economic impact, gender economics, digital and financial inclusion, and inclusive growth.[2][4]

An alumna of the Indian Institute of Management Ahmedabad, Madgavkar began her career in banking before joining McKinsey.[3] At MGI, she has played an influential role in shaping how global leaders think about important economic and societal issues.

Madgavkar's work on quantifying the economic value of advancing gender parity is widely credited with changing the global dialogue around this topic.[2] Leaders like Shinzo Abe, Hillary Clinton, and Melinda Gates have drawn from MGI's research in framing gender equality goals.

More recently, Madgavkar has been at the forefront of MGI's efforts to set bolder economic empowerment aspirations for nations, rather than just poverty reduction targets.[2] Her perspectives have helped shape discussions at major forums like the B20 Summit in Indonesia.

Throughout her tenure at MGI, Madgavkar has consistently worked to integrate economic and societal considerations, believing the two are inextricably linked for achieving broad-based progress.[2]

Beyond her research leadership, Madgavkar is also a strong advocate for proactively seeking out and embracing sponsorship from leaders, having benefited from such support during her own career journey.[2]

She has been recognized as a prominent woman leader and serves as a Counsellor to global business and policy leaders on key issues at the intersection of economies and societies worldwide.[5]

Citations:

[1] https://blog.geniouxfacts.com/2024/05/g-f22427-bridging-knowledge-chasms.html

[2] https://www.mckinsey.com/featured-insights/themes/anu-madgavkar

[3] http://www.playtopotential.com/speaker/anu-madgavkar

[4] https://www.conference-board.org/bio/anu-madgavkar

[5] https://www.linkedin.com/in/anu-madgavkar

Michael Chui

Here is a biography of Michael Chui, a Partner at the McKinsey Global Institute based in the Bay Area:

Michael Chui is a Partner at the McKinsey Global Institute (MGI), McKinsey & Company's influential business and economics research arm. Based in the San Francisco Bay Area, he leads research on the impact of disruptive technologies and innovation on businesses, economies, and societies worldwide.[2][3][4]

Chui has directed pioneering MGI studies examining the economic and societal implications of major technological forces like big data, artificial intelligence, the Internet of Things, automation, and other emerging innovations. His research has shaped global conversations and strategies around harnessing these technologies for economic progress.[2][4]

Some key areas of focus for Chui include data & analytics, social & collaboration technologies, robotics & automation, and biological technologies. His work explores how organizations can leverage these advances to drive growth, productivity, and competitiveness in an era of rapid technological disruption.[2][4]

Prior to joining MGI, Chui had a diverse background spanning technology, public service, and entrepreneurship. He served as the first Chief Information Officer for the City of Bloomington, Indiana, where he modernized the municipal IT infrastructure. He also co-founded HoosierNet, an early internet service provider cooperative.[3][5]

Chui is a sought-after speaker at major conferences globally, and his research has been widely cited in leading publications. His PhD dissertation at Indiana University examined user behaviors and interfaces for web search engines.[2][3][4]

Beyond his research leadership, Chui is actively involved in diversity and inclusion efforts at McKinsey. He is a global co-sponsor of the firm's Asians at McKinsey affinity network and serves on the advisory council for the McKinsey Institute for Black Economic Mobility.[2]

Chui also holds advisory and board member roles with organizations like the James Irvine Foundation, Asia Society of Northern California, and the Council on Foreign Relations.[2][4]

Citations:

[1] https://blog.geniouxfacts.com/2024/05/g-f22427-bridging-knowledge-chasms.html

[2] https://www.mckinsey.com/our-people/michael-chui

[3] https://www.cxotalk.com/bio/dr-michael-chui-partner-mckinsey-company

[4] https://www.greenbiz.com/michael-chui

[5] https://www.linkedin.com/in/chuimichael

Sven Smit

Here is a biography of Sven Smit, Chair of the McKinsey Global Institute and Senior Partner at McKinsey & Company, based in Amsterdam:

Sven Smit is a Senior Partner at McKinsey & Company and the Chair of the McKinsey Global Institute (MGI), the firm's influential business and economics research arm. Based in Amsterdam, he leads MGI's cutting-edge research on global economic trends, productivity, innovation, technology, labor markets, and more.[2][3][4][5]

As MGI Chair, Smit has authored numerous high-impact reports examining topics like the future of work, urbanization, emerging markets, Europe's economic outlook, and strategies for driving enduring company performance. His research has shaped thinking among global leaders on core issues like economic volatility, inflation, and uncertainty.[3]

Beyond research leadership, Smit is a current member of McKinsey's global leadership team and its Shareholders' Council, which oversees the firm's knowledge development. He also chairs McKinsey's insights and ecosystems work worldwide.[3]

Smit advises leading companies across industries on growth strategies, analyzing success factors, examining how megatrends influence growth, and defining lessons for diversified business expansion. He is the co-author of books like "Strategy Beyond the Hockey Stick" and "The Granularity of Growth."[3]

Prior to his current roles, Smit led McKinsey's work in Western Europe and the firm's global Strategy & Corporate Finance Practice. He began his career as an engineer and researcher in measurement and control.[3]

Smit holds a degree in mechanical engineering and an MBA. He is deeply involved in societal initiatives, contributing to NL2025, committed to a better future for the Netherlands.[3]

His influential perspectives have made him a sought-after speaker at major global conferences and forums on economic issues.[2][4][5]

Citations:

[1] https://blog.geniouxfacts.com/2024/05/g-f22427-bridging-knowledge-chasms.html

[2] https://www.linkedin.com/posts/sven-smit-52ab0675_reaix2021-activity-6951067832751165440-CRpQ

[3] https://www.mckinsey.com/our-people/sven-smit

[4] https://www.financialexecutives.org/Events/Event_Speaker_Bio.aspx?Event=2e0a2f38-9049-463f-a976-ec2c5fe470a9&Speaker=3F562E59-E8D9-48CA-A9A6-1FB55317483C

[5] https://www.lesrencontreseconomiques.fr/2021/en/speakers/swen-smit/

Dana Maor

Here is a biography of Dana Maor, Senior Partner at McKinsey & Company based in Tel Aviv:

Dana Maor is a Senior Partner at McKinsey & Company's Tel Aviv office. She serves as the global co-head and European leader of the firm's People & Organizational Performance Practice.[2][4]

Maor first joined McKinsey in New York in 1998. After spending a decade in the United States, she transferred to the Israel office in 2008, where she was the Office Managing Partner from 2011 to 2021.[2]

From 2015 to 2017, Maor led McKinsey's work on transformational change initiatives across Africa, Europe, and the Middle East. More recently, she spearheaded the firm's global work on talent management strategies.[2]

Passionate about talent development and leadership, Maor has guided numerous organizations through establishing leadership development platforms for top executives. She has also helped architect capability-building programs to reskill employees and align workforces with changing business needs.[2][4]

Across sectors like aerospace, financial services, pharmaceuticals, and telecommunications, Maor has assisted clients in pursuing successful large-scale operational and organizational transformations, as well as mergers and acquisitions integrations.[2]

Maor has been actively involved in knowledge creation and publishing at McKinsey. She played a major role in the research that went into the firm's 2018 book "Talent Wins," which builds an effective understanding of talent management practices.[2]

In her current leadership role, Maor is focused on driving holistic impact for McKinsey's clients. This includes helping leaders define organizational purpose, design agile operating models, implement talent strategies for current and future skills needs, shape healthy cultures, shift mindsets, and inspire new behaviors to sustain transformation success.[2][4]

Maor holds a bachelor's degree from Tel Aviv University and an MBA from the University of Pennsylvania's Wharton School.[3][5]

Citations:

[1] https://blog.geniouxfacts.com/2024/05/g-f22427-bridging-knowledge-chasms.html

[2] https://www.mckinsey.com/our-people/dana-maor

[3] https://il.linkedin.com/in/dana-maor-046455212

[4] https://www.mckinsey.com/featured-insights/themes/meet-the-partners-behind-our-most-popular-summer-insights

[5] https://www.zoominfo.com/p/Dana-Maor/981788043

Gurneet Singh Dandona

Here is a biography of Gurneet Singh Dandona from McKinsey:

Gurneet Singh Dandona is an Associate Partner and Senior Expert at McKinsey & Company. He has over 12 years of experience with the firm across multiple regions and practice areas.[2]

Based out of Delhi, Dandona has worked extensively on topics related to the future of work, automation, and the impact of disruptive technologies like artificial intelligence (AI) and generative AI on labor markets, skills, and economies worldwide.[3]

As part of the McKinsey Global Institute (MGI) research team, Dandona has authored several high-profile reports examining these forces. This includes the recent MGI report "Generative AI and the future of work in America" published in July 2023, which analyzes the potential impact of generative AI on occupations and skills requirements across the U.S. workforce.[5]

Prior to MGI, Dandona spent several years with McKinsey's Operations Practice, advising clients across sectors like automotive, consumer goods, pharmaceuticals and advanced industries on operations strategy, supply chain transformations, lean manufacturing and productivity improvement programs.[2]

Dandona has also been involved in capability building efforts, designing and launching the McKinsey Health Institute to help upskill the firm's consultants and experts on healthcare topics and trends.[3]

Over his tenure at McKinsey, Dandona has worked with over 30 clients across geographies like India, Southeast Asia, Australia, Croatia and other European countries on a range of strategic and operational issues.[3]

Dandona holds a bachelor's degree from Delhi University.[2] His insights and perspectives have been featured in various McKinsey publications and knowledge forums focused on the future of work and technology's impact on labor markets and skills.

Citations:

[1] https://blog.geniouxfacts.com/2024/05/g-f22427-bridging-knowledge-chasms.html

[2] https://www.linkedin.com/in/gurneet-singh-dandona-a4992969

[3] https://www.linkedin.com/posts/gurneet-singh-dandona-a4992969_futureofwork-automation-croatia-activity-6864198662935871488-Tzcy

[4] https://www.mckinsey.com/featured-insights/themes/meet-the-partners-behind-our-most-popular-summer-insights

[5] https://www.mckinsey.com/~/media/mckinsey/mckinsey%20global%20institute/our%20research/generative%20ai%20and%20the%20future%20of%20work%20in%20america/generative-ai-and-the-future-of-work-in-america-vf1.pdf

Roland Huyghues-Despointes

Based on the provided search results, here is a biography of Roland Huyghues-Despointes, a consultant at McKinsey & Company based in Paris:

Roland Huyghues-Despointes is an Engagement Manager at McKinsey & Company's Paris office. He has been with the firm for several years, working across various industries and practice areas.

Huyghues-Despointes holds a degree from The London School of Economics and Political Science (LSE). During his studies, he received the "Best Paper" award for his bachelor's thesis titled "Understanding the Mechanisms that led to Islamic Finance's Social Failure: An Empirical Research", scoring 81%.[2]

In April 2024, Huyghues-Despointes shared on LinkedIn that he was "thrilled to attend the RAISE Summit" in Paris, indicating his involvement with the firm's recruiting efforts for top talent.[3]

While the search results do not provide many specifics about his client work or areas of expertise at McKinsey, Huyghues-Despointes appears to be an actively engaged consultant. His LinkedIn profile mentions his current role as an Engagement Manager in Paris.[2][3]

McKinsey's website lists bios for senior partners and leadership, but does not have detailed profiles for more junior consultants like Huyghues-Despointes.[4] The other results are not directly relevant to his background.[1][5]

In summary, Roland Huyghues-Despointes is a consultant working as an Engagement Manager in McKinsey's Paris office. He holds a degree from LSE, received recognition for his bachelor's thesis, and seems involved in the firm's recruiting activities based on his social media presence. However, limited public information is available about his specific client responsibilities or areas of focus within the consulting firm.

Citations:

[1] https://blog.geniouxfacts.com/2024/05/g-f22427-bridging-knowledge-chasms.html

[2] https://fr.linkedin.com/in/rolandhuyghuesdespointes

[3] https://www.linkedin.com/posts/rolandhuyghuesdespointes_thrilled-to-attend-the-raise-summit-on-monday-activity-7182298904829292544-FUa1

[4] https://www.mckinsey.com/capabilities/transformation/our-people

[5] https://en.wikipedia.org/wiki/Roland_Berger_%28company%29

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REFERENCES

“genioux facts”: The online program on "MASTERING THE BIG PICTURE OF THE DIGITAL AGE”, g-f(2)2428, Fernando Machuca and Perplexity, May 25, 2024, Genioux.com Corporation.

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