What HR needs to know about Biden’s AI executive order

In the roughly one year since OpenAI introduced its generative AI tool to the masses, there’s been fervor over what the rapid development of artificial intelligence means for workers’: Will AI replace them and take jobs away, will it create new jobs, or simply change the way people work?

Finding answers to these questions has fallen mainly to HR teams, who are grappling with how to upskill employees, what skills will be most relevant, and pertinent AI use cases for their business.

In an attempt to set up guardrails for how the technology will affect the workforce, President Joe Biden this week signed a sprawling executive order that, in part, calls on companies to “develop principles and best practices to mitigate the harms and maximize the benefits of AI for workers.”

The order calls on companies to address potential job displacement caused by AI and lessen the dangers of increased workplace surveillance and bias. The order also urges companies to support workers’ ability to bargain collectively and invest in the training and development needed to ensure professionals are prepared for the future workplace. Finally, the order mandates a report on AI’s potential labor-market impact and pledges to identify ways to strengthen federal support for workers facing labor disruptions from AI.

Biden’s executive order, which requires top AI developers to report on risks to national security, is part of an ongoing strategy to govern and build on the U.S.’s market leader position in AI. It’s also a good first step, says Peter Cappelli, director of the Center for Human Resources at the Wharton School of Business.

The biggest challenge for HR departments, he says, will likely be staying up-to-date on new AI innovations as the technology rapidly evolves and disrupts the workforce.

AI’s workplace impact is already apparent; companies have cited AI as the driver for nearly 4,000 job cuts this year, according to a report from Challenger, Gray & Christmas. IBM chief human resources officer Nickle LaMoreaux told Fortune in June that the company froze hiring as it figured out just how implementing AI into its HR operations would transform people’s jobs. The tech company said at the time that it had saved 12,000 hours over 18 months by automating systems requiring back-and-forth exchanges between managers and employees. 

“The real piece that we’ve got to get ahead of now is the 80% or 90% of jobs that aren’t going away, but that we all need to reskill on,” LaMoreaux said. “How can you provide skills and programs well ahead of time? Do you have a view 18 months from now? What portions of the job are going to change? Do people have access to training? That’s the pivot we need to make.”

Trey Williams
@trey3williams
trey.williams@fortune.com

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The hotbed for AI talent is where one would expect: Silicon Valley. But outside the Bay Area, cities like Boston and Seattle are emerging as secondary hubs. Across the pond, London is also staking a claim as an AI hotspot for talent, according to real estate services company JLL.

Around the Table

A round-up of the most important HR headlines.

- Most workers at Toyota’s U.S. factories will see a 9% pay bump following the UAW deals and reach max pay in a shorter time frame, the automaker announced on Wednesday. Wall Street Journal

- Men who work full time in the U.K. now make 7.7% more than their female counterparts, a slight increase from last year. Bloomberg

- Indian IT consultancy Infosys, whose founder thinks young people should work 70-hour weeks, asked some entry and mid-level employees to return to the office 10 days a month. Reuters

- The Portland Association of Teachers went on strike Wednesday over better pay, more lesson-planning time, and a cap on class sizes. The strike leaves roughly 45,000 students without school until an agreement is reached. New York Times

Watercooler

Everything you need to know from Fortune.

We’re hiring. The job market remained strong in September, with 9.6 million job openings, a slight increase from the previous month. Layoffs fell from 1.7 to 1.5 million. —Paul Wiseman, AP

Out of app. The number of young people starting apprenticeships in the U.K. has dropped by nearly one-third since 2016. Small businesses saw apprenticeship enrollment drop by almost half during that time. —Orianna Rosa Royle

Assets dropped. Texas-based financial services provider Charles Schwab laid off around 2,200 employees as part of a cost-cutting effort. —Paige Smith, Bloomberg