3 days ago
Leveraging Gen Z For Mindful Innovation
Deepa Nagraj is the SVP - Global Head of Communications & Sparkle Innovation Ecosystem, at Mphasis.
Generation Z, projected to comprise over 25% of the global workforce by 2025, is reshaping workplace dynamics with its distinct values and priorities. Unlike previous generations, Gen Z affirms diversity, sustainability and ethical innovation, expecting employers to reflect these principles in their operations and strategies.
At the intersection of this generational shift is the progressive impact of artificial intelligence (AI) on business and society. The rise of tools based on advanced tech like AI tackle critical global issues, from driving sustainability efforts to reforming industries. However, these breakthroughs come with complex environmental, social and governance (ESG) implications that cannot be overlooked.
As AI accelerates, its alignment with environmental, social and governance (ESG) goals becomes a business imperative. For forward-thinking companies, the challenge isn't just adopting AI but ensuring that its ESG implications resonate with Gen Z's socially conscious ethos. As Gen Z, a generation deeply rooted in values of sustainability, diversity and ethics, enters the workforce, they are not just employees but catalysts for change. Engaging Gen Zs in the workforce effectively requires strategic foresight.
For businesses, the challenge lies in engaging this socially conscious cohort to understand and champion the ESG impact of AI. Doing so requires companies to embrace not just the technology but also the ideals of a generation poised to shape the future, ensuring innovation aligns with purpose and progress.
As organizations reimagine corporate engagement, the focus must shift to addressing AI's ESG impact while aligning with Gen Z's values to cultivate a workforce committed to building a sustainable and equitable future.
Framing AI Growth In ESG Frameworks
According to recent reports, the AI market is projected to reach a phenomenal USD407 billion by 2027. The technology is expected to see an annual growth rate of a staggering 36.3% from 2022 to 2027. A significant percentage of businesses—up to 64%—think artificial intelligence will help increase their overall productivity.
Be that as it may, senior leadership across industries is increasingly posed with questions and concerns about the technology's impact on environmental, social and governance (ESG) factors. Companies worldwide are increasingly recognizing that incorporating ESG principles into their operations is crucial for long-term profitability, relevance and resilience.
Let's take a look at a few examples of companies that have effectively adopted ESG practices and how these initiatives are poised to positively impact employee and business performance.
Environmental: The Foundation Of Sustainable AI
The 'E' in ESG stands for environmental factors and is used to gauge how companies conduct themselves while being mindful of their impact on the natural environment. Several companies are, for example, leveraging innovative technologies to reduce their carbon footprint to drive impactful environmental change.
Consider global tech company Lenovo's cooling computer technology, a transformative method, that enhances energy efficiency in IT infrastructure. The company has committed to achieving net-zero emissions by 2050 and is collaborating with the Science Based Targets initiative (SBTi) to ensure its climate goals align with global standards.
Similarly, American software company Salesforce demonstrates a strong commitment to environmental sustainability through its AI-powered Net Zero Cloud. The software enables businesses to track and reduce carbon footprints with the help of advanced reporting tools, which help align organizations with their environmental goals.
Social: Strengthening People And Communities
The 'S' in ESG represents the social dimension or the relationships that a company has with its workforce, local communities, clients and the public at large. One of the ways companies can ensure compliance with supporting social interests is by having robust diversity and inclusion practices in place. To this end, some businesses are using AI-driven tools to help monitor workplace diversity and implement unbiased hiring practices. Further, software giants like Microsoft have special strategies like its AI for Good initiative that addresses pressing social challenges, such as public safety, health and education, by deploying AI-backed tools and solutions to enhance operations, access and reach.
Governance: Who Governs The Governance?
The 'G' in ESG concerns governance factors and includes frameworks that companies conduct their business by, including as a result of the composition of their board, their code of conduct and their perspective on shareholders' rights. In several ways, governance encompasses the systems and processes that define and ensure transparency, fairness and compliance within organizations.
As can be seen with AI's rapid advancements, governance struggles to keep pace with innovation. Firstly, multinational companies that would prefer having one uniform rule across regions and countries have to deal with varying regulations in different geographies, which often hinders quick and iterative AI deployment. Secondly, there isn't yet widespread agreement on what should be considered standard and mandatory in terms of AI regulation and what should be decided on a case-by-case basis. This leads to confusion, delays and slow execution. Finally, continuous testing and monitoring of AI tools is critical as more companies across verticals rapidly scale their AI systems. Although companies are aware of this, not all are able to keep pace. However, it is important that the rules around the technology's governance keep pace with its evolution and expansion.
As policymakers highlighted recently during the COP24, there is a need to establish frameworks that anticipate tech's impact while companies self-regulate through robust policies. Bridging the gap between advocacy and innovation is going to be vital to ensure governance safeguards both progress and public trust.
The paradox of advanced technology lies in its potential for both meaningful progress and unintended consequences. This duality mirrors the very human intelligence AI aspires to emulate. As a species, we thrive in reconciling contradictions—a trait we must now extend to AI.
To fully harness AI as a catalyst for ESG, companies must align their capabilities with human values, those which Gen Z holds dear, ensuring its deployment is thoughtful, ethical and impactful. This means embracing its nuances, fostering mindful innovation and prioritizing its long-term societal and environmental consequences. By doing so, we can drive sustainable growth while mitigating risks, building a future where AI enhances—not undermines—shared goals for a better world.
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