Welcome to the Fearing Greed Business Interview. I'm sure, Alma, there's a severe disconnect between employers and employees on AI and the role that artificial intelligence will play in the workforce. This is a global trend, but the disconnect is even wider in Australia. Microsoft's latest Work Trend Index survey in thirty one thousand workers across thirty one countries gauging attitudes to AI and just how will leaders are preparing their workforce for working with it. Stephen Warrell is the Managing Directorate at Microsoft Australia and New Zealand. He joins me in the studio. Stephen, Welcome to Fear and Greed.

Welcome to the Fearing Greed Business Interview. I'm sure, Alma, there's a severe disconnect between employers and employees on AI and the role that artificial intelligence will play in the workforce. This is a global trend, but the disconnect is even wider in Australia. Microsoft's latest Work Trend Index survey in thirty one thousand workers across thirty one countries gauging attitudes to AI and just how will leaders are preparing their workforce for working with it. Stephen Warrell is the Managing Directorate at Microsoft Australia and New Zealand. He joins me in the studio. Stephen, Welcome to Fear and Greed.

Great to be here with you.

Great to be here with you.

First up question which took me a while to work out once I was reading the survey, what's an AI agent? Because it's kind of a new concept.

First up question which took me a while to work out once I was reading the survey, what's an AI agent? Because it's kind of a new concept.

It is a new concept, and I suppose generative AI in this whole world of AI itself is still new and so there's a lot that's emerging and as we apply the technology, we're starting to see different ways of putting it to use. But GENERALVAI November thirty, twenty twenty two, Chat GPT was the sort of official launch of that on our consciousness, and over the last two and a half years we've started to see that technology being applied in different ways and now today as agents, which simply put different aspects of general Vai applied to processes inside an organization that you might put to use to lower cost, to improve the service delivery in a call center, for argument's sake, in a bank, in a telco.

It is a new concept, and I suppose generative AI in this whole world of AI itself is still new and so there's a lot that's emerging and as we apply the technology, we're starting to see different ways of putting it to use. But GENERALVAI November thirty, twenty twenty two, Chat GPT was the sort of official launch of that on our consciousness, and over the last two and a half years we've started to see that technology being applied in different ways and now today as agents, which simply put different aspects of general Vai applied to processes inside an organization that you might put to use to lower cost, to improve the service delivery in a call center, for argument's sake, in a bank, in a telco.

So it's like a digital employee almost.

So it's like a digital employee almost.

Very much like that. And so that's what we saw through the survey was the real value in this wave. What we're seeing at the moment is using general Vai as a personal assistant, a chatbot if you will, which is a fantastic way for the technology to be used. But the real value in taking cost out of businesses and indeed changing the way in which we interact with technology is in looking at automating processes and that's what magenticai is all about.

Very much like that. And so that's what we saw through the survey was the real value in this wave. What we're seeing at the moment is using general Vai as a personal assistant, a chatbot if you will, which is a fantastic way for the technology to be used. But the real value in taking cost out of businesses and indeed changing the way in which we interact with technology is in looking at automating processes and that's what magenticai is all about.

Yeah, I must say, once I read that, I just sort of thought, in our business fear and greed, think of it as another person to do the work as opposed to something to help me do the work. It actually does make you think about it differently, well, that's the case. Indeed, why is there such a disconnect then between employers and employees around AI.

Yeah, I must say, once I read that, I just sort of thought, in our business fear and greed, think of it as another person to do the work as opposed to something to help me do the work. It actually does make you think about it differently, well, that's the case. Indeed, why is there such a disconnect then between employers and employees around AI.

I think because we are at such an early stage in the use of the technology, and if you go back over history, you'll see when new technology waves emerged, there's always concerns about what does this mean for me for my industry? Do I have a job in future? These are questions that have been asked in other industrial revolutions and other stages when we've seen general purpose technologies evolve and emerge on the scene, So it's not unusual that these conversations would come up. And I think what we're seeing are the logical questions that arise both from a worker's point of view but also from a leadership and a managerial perspective in terms of how best do we put this technology to work in a safe and responsible way so that we can tap into the benefits that we know exist.

I think because we are at such an early stage in the use of the technology, and if you go back over history, you'll see when new technology waves emerged, there's always concerns about what does this mean for me for my industry? Do I have a job in future? These are questions that have been asked in other industrial revolutions and other stages when we've seen general purpose technologies evolve and emerge on the scene, So it's not unusual that these conversations would come up. And I think what we're seeing are the logical questions that arise both from a worker's point of view but also from a leadership and a managerial perspective in terms of how best do we put this technology to work in a safe and responsible way so that we can tap into the benefits that we know exist.

So what's the answer to that, How is the best way? And particularly around organizational structure, because what the survey says about organizational structure is really interesting.

So what's the answer to that, How is the best way? And particularly around organizational structure, because what the survey says about organizational structure is really interesting.

It is well, if I just addressed that for a moment, from an organizational point of view, you can imagine a world in future where you'll have lots of agents performing all sorts of functions inside an organization, and the human interaction will then come in terms of let's understand at a particular point in the process what has been produced by that agent to make sure that we're still on track, and then of course we can continue. So human interaction and human engagement obviously is still very much part of that of that way of working. But of course what needs to happen is a conversation between everyone in the community in terms of again, how do we want to use this technology safely and responsibly? And I think that involves unions, that involves organizations, It involves a government of course, and that's why you see that debate so clearly on the agenda at the moment leading into the Productivity Summit that we will see here later in August.

It is well, if I just addressed that for a moment, from an organizational point of view, you can imagine a world in future where you'll have lots of agents performing all sorts of functions inside an organization, and the human interaction will then come in terms of let's understand at a particular point in the process what has been produced by that agent to make sure that we're still on track, and then of course we can continue. So human interaction and human engagement obviously is still very much part of that of that way of working. But of course what needs to happen is a conversation between everyone in the community in terms of again, how do we want to use this technology safely and responsibly? And I think that involves unions, that involves organizations, It involves a government of course, and that's why you see that debate so clearly on the agenda at the moment leading into the Productivity Summit that we will see here later in August.

What about workplace structures, the idea that we don't so much work in functions, as I mean, it's very sort of agile, very tech style approach. We work on projects rather than functions.

What about workplace structures, the idea that we don't so much work in functions, as I mean, it's very sort of agile, very tech style approach. We work on projects rather than functions.

Well, I think organizations have evolved from the last industrial revolution, and so in a sense, the many assumptions we make today about how organizations are organized and how we perform worker based on the technologies of our previous industrial revolutions. And so this is why it becomes such an interesting and difficult conversation, I suppose, because we're at the very early stages and a lot of things are becoming clear as we move ahead, as we understand just exactly how to use the technology. Of course, organizational structures will evolve as well as we start to appreciate how we might implement a gendic AI and the sorts of processes that lend themselves to the use of technology, Because there'll be other places where the technology won't be as relevant or as applicable.

Well, I think organizations have evolved from the last industrial revolution, and so in a sense, the many assumptions we make today about how organizations are organized and how we perform worker based on the technologies of our previous industrial revolutions. And so this is why it becomes such an interesting and difficult conversation, I suppose, because we're at the very early stages and a lot of things are becoming clear as we move ahead, as we understand just exactly how to use the technology. Of course, organizational structures will evolve as well as we start to appreciate how we might implement a gendic AI and the sorts of processes that lend themselves to the use of technology, Because there'll be other places where the technology won't be as relevant or as applicable.

It sounds to me that it's going to be a real challenge for management to actually work out how to use AI in a way that actually means the resources are being used more efficiently or efficiently, and let alone more efficiently within the organization.

It sounds to me that it's going to be a real challenge for management to actually work out how to use AI in a way that actually means the resources are being used more efficiently or efficiently, and let alone more efficiently within the organization.

I think it's a challenge today already shorn in terms of productivity as a nation, we're at decade low levels at an economic level for Australia, and obviously we're not alone. There are many countries that are struggling as well, and every organization, our economy is trying to find ways to be more efficient and effective. The survey that you started with also tells us that eighty percent of respondents report a capacity gap, that is, they don't have enough time or energy to do the things they need to do today. And so it doesn't they too long to look around any organization to see that many many ways in which things could be better, and we think cogenetic AI and this new wave of technology presents many of the answers, not all, but many of the answers to those questions. And so yes, it's a challenge, but it's also a massive opportunity for us as leaders, as organizations, and I would say as a country to think about how do we use this moment to make the most of it.

I think it's a challenge today already shorn in terms of productivity as a nation, we're at decade low levels at an economic level for Australia, and obviously we're not alone. There are many countries that are struggling as well, and every organization, our economy is trying to find ways to be more efficient and effective. The survey that you started with also tells us that eighty percent of respondents report a capacity gap, that is, they don't have enough time or energy to do the things they need to do today. And so it doesn't they too long to look around any organization to see that many many ways in which things could be better, and we think cogenetic AI and this new wave of technology presents many of the answers, not all, but many of the answers to those questions. And so yes, it's a challenge, but it's also a massive opportunity for us as leaders, as organizations, and I would say as a country to think about how do we use this moment to make the most of it.

Stay with me, Stephen, we'll be back in a minute. My guest this morning is Stephen Warrell, Managing director at Microsoft Australia and New Zealand. Just before the break, you talked about how we as a country can use it. That survey thirty one thousand respondents, thirty one countries. Where does Australia sit in the AI evolution?

Stay with me, Stephen, we'll be back in a minute. My guest this morning is Stephen Warrell, Managing director at Microsoft Australia and New Zealand. Just before the break, you talked about how we as a country can use it. That survey thirty one thousand respondents, thirty one countries. Where does Australia sit in the AI evolution?

We're more skeptical when there are other surveys that confirm the same conclusion that we saw that there's still many questions being asked here that other countries aren't asking. And so you see different economies approaching this moment in a different way. Many economies and countries looking at this as their opportunity to leap frog, perhaps those that haven't participated in some of the technology evolutions of the last couple of changes that we've seen. And so I think again that's a natural consequence of who we are as a community and where our economy has evolved from and where we're headed to. But I'm also confid and with conversation and getting the right people at the table to talk through the potential applications of the technology again managing the risk and making sure we do it in a safe and responsible way, that this can be an awesome opportunity for us as a country to continue to progress and develop.

We're more skeptical when there are other surveys that confirm the same conclusion that we saw that there's still many questions being asked here that other countries aren't asking. And so you see different economies approaching this moment in a different way. Many economies and countries looking at this as their opportunity to leap frog, perhaps those that haven't participated in some of the technology evolutions of the last couple of changes that we've seen. And so I think again that's a natural consequence of who we are as a community and where our economy has evolved from and where we're headed to. But I'm also confid and with conversation and getting the right people at the table to talk through the potential applications of the technology again managing the risk and making sure we do it in a safe and responsible way, that this can be an awesome opportunity for us as a country to continue to progress and develop.

The survey talks about frontier firms.

The survey talks about frontier firms.

Explain there, Yeah, frontier firm is one essentially that it's understanding the opportunity and then taking the steps necessary to leverage the technology. They're also the organizations that are very clear on urgentic AI, and so they talk very clearly about establishing human leadership for agents in their processes, to drive efficiencies, to front better ways of delivering service, and to drive cost out of their business, but to do it in a way that meets community expectations and obviously manages the interests of the employees inside that organization.

Explain there, Yeah, frontier firm is one essentially that it's understanding the opportunity and then taking the steps necessary to leverage the technology. They're also the organizations that are very clear on urgentic AI, and so they talk very clearly about establishing human leadership for agents in their processes, to drive efficiencies, to front better ways of delivering service, and to drive cost out of their business, but to do it in a way that meets community expectations and obviously manages the interests of the employees inside that organization.

Today, STEM, I'm going to say, you've used the word agentic a few times, and this is one of those new words in it.

Today, STEM, I'm going to say, you've used the word agentic a few times, and this is one of those new words in it.

It is. Unfortunately my industry, we have a habit of comming up with new words and this is one that we may have to get used to think of it as a process. It's been automated by a new piece of technology and we call it an agent.

It is. Unfortunately my industry, we have a habit of comming up with new words and this is one that we may have to get used to think of it as a process. It's been automated by a new piece of technology and we call it an agent.

Yeah, okay, what's the cost if we don't if Australia doesn't keep up with it, or if individual firms don't keep up with it.

Yeah, okay, what's the cost if we don't if Australia doesn't keep up with it, or if individual firms don't keep up with it.

Look, I think it doesn't take a long look around the world to see countries stating clearly that they want to be leaders in the use of artificial intelligence, many in our region and many in Europe and of course the US. It's very obvious that many have identified this wave as the one that will help them to establish competitive advantage and obviously to help them as they continue to shift their economies. So I think there's a very clear signal to us as a nation to take the steps that are necessary. And maybe back to your last question, the thing that we really need to do is to have the conversations that I'm pointing to, but also to skill ourselves to understand how to use this technology. And I don't mean you know, one or two people inside the organization or the tech team I'm in. Every leader and every employee in any industry needs to think deeply about where will I impact the job or might it impact their job, so that they can form their own point of view, which then I think raises the quality of the discussion that we then have.

Look, I think it doesn't take a long look around the world to see countries stating clearly that they want to be leaders in the use of artificial intelligence, many in our region and many in Europe and of course the US. It's very obvious that many have identified this wave as the one that will help them to establish competitive advantage and obviously to help them as they continue to shift their economies. So I think there's a very clear signal to us as a nation to take the steps that are necessary. And maybe back to your last question, the thing that we really need to do is to have the conversations that I'm pointing to, but also to skill ourselves to understand how to use this technology. And I don't mean you know, one or two people inside the organization or the tech team I'm in. Every leader and every employee in any industry needs to think deeply about where will I impact the job or might it impact their job, so that they can form their own point of view, which then I think raises the quality of the discussion that we then have.

Okay, if I'm listening to this podcast this morning and I run a business, be that five people, fifty people, five hundred people, and I'm saying that we're using it, but that's probably just using copilot to be perfectly honest, right, right, what do I do? Like, what should I go out and do today? Right?

Okay, if I'm listening to this podcast this morning and I run a business, be that five people, fifty people, five hundred people, and I'm saying that we're using it, but that's probably just using copilot to be perfectly honest, right, right, what do I do? Like, what should I go out and do today? Right?

Well, this is one of the things that I give great credit to the New South Wales government for just as one example, other governments around the country are doing the same thing, but they're bringing education, to make it available for smaller medium businesses and to make it easy for anyone in the community to tap into the latest in relation to AI or cyber or machine learning for argument's sake. In fact, the New South Wales government has an investment out at Matobank, the Institute of Applied Technology, which runs a series of short courses. It could be a webcast for an hour all the way through to a couple of weeks or a couple of months, depending on your appetite. And it's those classes that we think are so vital to help small and medium businesses, mums and dads to understand what is this in called AI AGENTICAI and all the other buzzwords that might come out of the industry, and how could it impact on my business, how could it impact on my life? Acknowledging at the same time, Sean that people are using this technology already on their phones and so Australians have been great users of technology in the past and we will again. And I think it's through education and the skilling programs that I'm talking about where I hope we can raise the quality of the conversation so that we can then put it to use in the national interest.

Well, this is one of the things that I give great credit to the New South Wales government for just as one example, other governments around the country are doing the same thing, but they're bringing education, to make it available for smaller medium businesses and to make it easy for anyone in the community to tap into the latest in relation to AI or cyber or machine learning for argument's sake. In fact, the New South Wales government has an investment out at Matobank, the Institute of Applied Technology, which runs a series of short courses. It could be a webcast for an hour all the way through to a couple of weeks or a couple of months, depending on your appetite. And it's those classes that we think are so vital to help small and medium businesses, mums and dads to understand what is this in called AI AGENTICAI and all the other buzzwords that might come out of the industry, and how could it impact on my business, how could it impact on my life? Acknowledging at the same time, Sean that people are using this technology already on their phones and so Australians have been great users of technology in the past and we will again. And I think it's through education and the skilling programs that I'm talking about where I hope we can raise the quality of the conversation so that we can then put it to use in the national interest.

Stephen, thank you for talking to Fear and Greed.

Stephen, thank you for talking to Fear and Greed.

Thank you, Sean.

Thank you, Sean.

Now Stephen Warrel, Managing Director at Microsoft Australia and New Zealand, that this is the Fear and Greed Business Interview. Join us every morning for the full episode of Fear and Greed Business News you can use. I'm Sean elma Enjoy your day.

Now Stephen Warrel, Managing Director at Microsoft Australia and New Zealand, that this is the Fear and Greed Business Interview. Join us every morning for the full episode of Fear and Greed Business News you can use. I'm Sean elma Enjoy your day.