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Want to Get The Most Out of AI? Start Treating AI Like Your Human Employees

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Want to Get The Most Out of AI? Start Treating AI Like Your Human Employees

Opinions expressed by Entrepreneur contributors are their own.

Our new AI tools and copilots have made some royal blunders. They’ve doled out bad advice with supreme confidence, they’ve gotten talked into shady deals, they’ve made things weird and turned incredibly rude. Slip-ups are rare, of course, but when they happen the internet goes to town. We love to dismiss a wayward AI.

But that’s a huge mistake.

The impulse is, in part, a result of being threatened by AI. But I think it also exposes a profound misunderstanding: We still think of AI agents as machines that aren’t capable of real growth and improvement the way that human employees are. So, we mock their mistakes — and point out their faults as though they were Roombas trapped in a corner.

In truth, however, we’ve reached a major inflection point. Today’s AI agents aren’t static. They can grow and learn if we take the time to coach them. What’s more, every company already has the power to coach AI agents themselves.

You don’t need a PhD in machine learning. In fact, I’ve met hundreds of AI agent managers who’ve never written a line of code. What they do know is how people work and how humans are managed best. And they understand that those principles now apply to AI agents, too.

Related: Entrepreneurs Are Rushing to Use AI. Here Are 8 Questions You Should Ask First.

The golden rule of managing people (and AI)

The best managers know that human error is a constant, necessary part of human learning. For an employee to truly realize their potential, they need to be given the freedom to push boundaries, experiment and even fail. Expecting a new employee to never falter isn’t simply unrealistic — it’s also unproductive. Great managers know that messing up and growth go hand in hand.

Meanwhile, exceptional managers know that it isn’t always the employee who needs to be corrected, either. It’s often the manager’s method of onboarding, training or providing feedback that needs adjustment. Large companies lose tens of millions of dollars because employees misunderstand policies or processes. However, high-performing managers don’t automatically point the finger; instead, they use those errors as a jumping-off point for introspection and improvement.

The same principles now apply when working with AI agents. They don’t arrive as finished products. Rather (just like humans), they need onboarding and a chance to learn about their new jobs. They need feedback. They need mentoring. In short, managers are discovering that AI agents need the same kind of grace that is already given to human employees.

Seizing on AI’s “teachable moments”

Say you work at a bank and you’re onboarding an AI customer service agent. You’ve uploaded to the agent every document that your human employees use to learn about company policy and procedures (those were read and digested in moments.) Company blogs and changing product details can all be tapped into the AI, too, by simply providing relevant URLs.

Then, once the AI agent is ready to start working with customers, it finally has a chance to make its first mistake. And you have a chance to make it better.

An explanation about how to open a new checking account, for instance, might be too long-winded for customers looking for a quick answer. This isn’t a fatal flaw. It’s a teachable moment. Giving direct feedback — “shorter responses, please” — translates to instant, visible improvement.

Every reaction from the agent can be shaped and crafted, with benefits that add up quickly over time. I’ve seen managers who invest time in coaching their AI employees turn an eager “intern” into a seasoned pro in a matter of months.

The real perspective shift here comes down to recognizing these agents for what they are: Fallible but eager employees, raring to learn if we give them a chance.

What’s gained by coaching AI past its mistakes

The benefits of this mind shift are manifold. In customer service, the enormous amount of time and money spent training human agents typically leads to limited returns. Industry-wide, we lose nearly half of those hires every year. It’s a sieve, with company resources flowing down the drain.

By contrast, AI agents aren’t going anywhere. Every ounce of effort poured into an AI agent’s training goes on producing returns in perpetuity. What’s more, those returns rapidly scale — a VP at Wealthsimple, a leading online investment platform, recently estimated that her AI Agent delivered the productivity of ten full-time human agents. That, by the way, allows those humans to focus on concierge experiences that are more complex and still require the human touch.

We already know that the quality management of humans is directly correlated to a higher market cap. Quality management of AI agents promises an even more positive effect. AI agents never forget and never leave, allowing management efforts to be scaled and shared.

But the upside extends beyond capable AI agents. Because AI needs human management and feedback in order to succeed, it doesn’t end up just taking jobs — but creating new, and often better, ones. I’ve seen how frontline customer service workers have taken on roles managing AI, giving them a renewed sense of ownership in the company.

Indeed, managers who learn to coach AI agents are making themselves indispensable. They’ve learned to use a tool that can boost productivity in every other department in their company.

Related: You Can Fear It and Still Use It — Why Are So Many American Workers Shy About AI?

A future where we’re all managers

Nor is this change limited to a select few roles. From here on out, just about everybody is going to be an AI manager. We’ll all have AI agents working for us, upping our productivity. And that means this mind-shift I’m describing — thinking about AI agents as teachable, ever-evolving co-workers — will be discussed far beyond the C-suite.

As a new paradigm sets in, agents will become precisely as intelligent as we, collectively, bother to make them.

It starts by extending to AI agents the same courtesy that we extend to humans — understanding that everybody (and every bot) makes mistakes. Then, we do what great managers have always done: coach, train and remove obstacles. They are learning machines, after all, just waiting for the next lesson that lets them leap forward again. And that’s where we come in.

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Salesforce CEO: AI Agents Could Replace Hiring Gig Workers

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Salesforce CEO: AI Agents Could Replace Hiring Gig Workers

For $2 a conversation, a new AI agent from Salesforce can answer questions from customers and schedule meetings — without a human being needed for oversight.

The AI agent technology, which Salesforce announced earlier this week at its annual Dreamforce event, has the potential to disrupt jobs currently held by human workers. Nearly three million people were employed as customer service representatives in 2022, with the majority (66%) being women, according to Data USA.

Related: Worried About AI Stealing Your Job? A New Report Calls These 10 Careers ‘AI-Proof’

Salesforce knows that its new technology carries the power to replace what could have been human hires. Salesforce CEO Marc Benioff said on Tuesday that the new AI agents allow companies to forgo hiring new employees or “gig workers” in more hectic periods of time, per Bloomberg.

“We want to get a billion agents with our customers in the next 12 months,” Benioff said.

Salesforce CEO Marc Benioff. Photo by Justin Sullivan/Getty Images

Adopting a hiring freeze, and then tasking AI with filling in the gaps, is a strategy being used by other companies like “buy now, pay later” payments firm Klarna.

One year ago, Klarna simply decided not to hire — not even replacements for people who left. Departing employees and an AI-induced hiring freeze have cut Klarna down from the 5,000-person workforce it was last year to the 3,800 people it had as of late August, without any layoffs.

Related: AI Is Impacting Jobs. Here Are the Gigs Affected the Most, According to an Analysis of 5 Million Upwork Postings

In late August, Klarna CEO Sebastian Siemiatkowski told The Financial Times that the company wants to get its workforce down to 2,000 employees within the next few years with this approach.

“Not only can we do more with less, but we can do much more with less,” he told the Financial Times.

Klarna isn’t the only company using AI to automate tasks that humans once did. Within the next year, three in five large companies in the U.S. intend to use AI for everything from financial reporting to marketing campaigns, according to a June study from Duke University.

Goldman Sachs estimates that AI could replace or impact 300 million jobs by 2030, affecting writing, translation, and customer service gigs.

Related: JPMorgan Says Its AI Cash Flow Software Cut Human Work By Almost 90%

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Craigslist’s Founder Pledges $100 Million for Cybersecurity

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Craigslist's Founder Pledges $100 Million for Cybersecurity

Craig Newmark, the 71-year-old retired founder of Craigslist, has four focus areas for philanthropy: military families and vets, cybersecurity, journalism, and pigeon rescue.

On Wednesday, he pledged $100 million to support U.S. cybersecurity, bringing his total giving and pledges to $400 million since 2015.

Craig Newmark. Photo by John Lamparski/Getty Images

According to the Wall Street Journal, Newmark has already committed over 20% of the $100 million pledge to organizations and projects around cybersecurity. Common Sense Media, for example, received $2 million to support efforts like a cybersecurity awareness campaign for parents and teachers.

Related: Melinda French Gates Reveals Her Next Move After Leaving Gates Foundation: ‘Set Your Own Agenda or Someone Else Will Set It For You’

Newmark was worth $1.3 billion in 2020 and pledged to give away almost all his wealth to charitable causes in December 2022. He told the Journal that his giving was inspired by the Judaic concept of tikkun olam, Hebrew for “repairing the world.

Newmark’s approach is to find the right people, give them the resources they need, “and then get outta their way,” according to his philanthropy’s website. He doesn’t give organizations who receive grants requirements to hit certain targets.

Newmark has yet to commit $88 million of his latest $100 million pledge. Applications are open through his foundation’s website where he personally vets the proposals.

Related: Warren Buffett Just Changed Up His Will and Locked Out the Bill & Melinda Gates Foundation

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23andMe Board Resigns: ‘Differences’ With CEO Anne Wojcicki

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23andMe Board Resigns: 'Differences' With CEO Anne Wojcicki

Days after proposing to settle a data breach lawsuit for $30 million, 18-year-old genetic testing company 23andMe now faces another public hurdle: Seven independent directors of its board resigned on Tuesday through a pointed letter addressed to CEO Anne Wojcicki, who is now the only remaining member of the board.

The resigning directors, among whom were YouTube CEO Neal Mohan and Sequoia VC Roelof Botha, called out Wojcicki for not submitting a “fully financed, fully diligenced, actionable proposal” to take the company private over the past five months. They wrote that their strategic direction for 23andMe was different from Wojcicki’s.

“Because of that difference and because of your concentrated voting power, we believe that it is in the best interests of the Company’s shareholders that we resign from the Board rather than have a protracted and distracting difference of view with you as to the direction of the Company,” they stated.

Related: 23andMe DNA Technology Helps Family Find Kidnapped Daughter After 51 Years

Wojcicki, who co-founded the company in 2006, controls 49% of 23andMe votes. In July, she submitted a proposal to buy all the shares she didn’t already own at $0.40 per share and take the company private. A special committee created by the company rejected her proposal, stating that it wasn’t in the best interests of shareholders.

Anne Wojcicki. Credit: Kyle Grillot/Bloomberg via Getty Images

Wojcicki told employees in a memo on Tuesday that she was “surprised and disappointed” by the resignations and would immediately begin finding replacement directors. She stated that “taking 23andMe private will be the best opportunity for long-term success.”

23andMe, which was valued at $6 billion in 2021 shortly after going public, is now a penny stock worth 34 cents per share at the time of writing. The company has until November 4 to bring its stock price up to at least $1 per share or risk being delisted.

23andMe has faced a number of public setbacks, including a data breach in October that impacted nearly 7 million accounts and appeared to target people with Chinese or Ashkenazi Jewish ancestry. Customers filed a class action lawsuit in January and 23andMe proposed a $30 million settlement earlier this month.

23andMe’s core product is a $99 ancestry kit that requires a customer to submit their spit in exchange for genetic insights. A $199 kit advertises health predisposition reports. The company is also developing drugs in-house and testing them.

Related: 23andMe Hackers Selling Stolen User Data, Including DNA Profiles of ‘Celebrities,’ on Dark Web

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