AI in Middle East Workplaces:Tech leader Lars Gehrmann’s insights

In the midst of the AI revolution reshaping the business landscape, it has become crucial to upskill talent to succeed. While organisations in the Middle East embrace this shift, they also need to identify the current talent needs, challenges, and opportunities to maximise gains. In an exclusive interaction with People Matters, Lars Gehrmann, Chief Digital Officer at Qatar Insurance Group, delves into how companies are responding to the evolving relationship with AI, how organisations in the insurance industry are embracing this change, and why continuous learning and skilling employees are crucial to thrive in today’s workplaces.

Here are the edited excerpts from the interview:

Tech transformation in the Middle East, and how QIC is embracing this shift.. 

In my three years of experience in the region, I have observed a notable shift – both in how various countries operate and in how individuals are drawn to be a part of it. There are subtle differences in execution across these countries. For instance, the UAE has a strong history in collaborating with experts and attracting talent to foster the development of new companies. Similarly, countries such as Qatar and Saudi Arabia are also witnessing an influx of fresh and captivating talent building new companies and increasing the regional talent pool.   

We are witnessing significant changes, which are particularly intriguing given the historical norms in the region that have traditionally shaped how companies operate. However, attracting and retaining international talent necessitates adaptation to international standards. UAE, Qatar, Saudi Arabia, Oman, and Kuwait, there remains a fascinating blend of Arabic roots and practices observed outside our region. This diversity adds to the intrigue, and professionals have ample opportunities to immerse themselves in the culture, making it an exciting melting pot to be a part of.

Additionally, the region's reputation for financial strength offers opportunities to finance or pre-finance numerous ventures and startups, adding to the allure. On the insurance front, similar opportunities abound. At QIC, for instance, we embarked on a journey several years ago to support the growth of insurtechs. This includes mentoring and showcasing them at the QIC Group MENA InsurTech Summit, competitions, providing exposure to insurance companies across the region. as well as facilitating pilots. 

With so much unfolding, it's truly an exhilarating time to be here. The upcoming MENA InsurTech Summit 2024, 12^th and 13^th of May in Doha, Qatar will host 75 international speakers, the best in class InsurTech VCs and all relevant regional Insurance companies. The overall theme beyond InsurTech will be the ‘AI Impact on the Insurance Value Chain’. 

Navigating the AI revolution and its impact talent skilling needs in the evolving workplaces..

Everybody has a good feeling that AI and Gen AI will change the way people operate in the future. Interestingly, most of the people have actually been testing applications like ChatGPT on their own. So, it's clear that the organisation needs to work on this. But, how do you work on this? Experience is the key, something everyone has garnered from digital transformation projects, giving us approaches and methodologies on how this works. The approach we take depends on the level of conviction we have regarding the potential productivity gains with Gen AI. We strongly believe that we will achieve significant gains as we have a strong commitment to it. For this, we reskilled our teams not only through traditional training but also through on-the-job training and continuous learning journeys. We are fostering cross-collaborations among our employees to facilitate equal upskilling and encourage learning different ways of doing things. This isn't a topic where, twenty years ago, you started implementing ERP systems because somebody thought it for you and put it in place. What we're experiencing now is different. Everyone has a unique approach, and it's not a blueprint you can simply copy. The blueprint is a work-in-progress, which makes it exciting and presents numerous opportunities to work on. A commitment to upskill is necessary; otherwise, you're just engaging in training and hoping for positive outcomes. I believe the potential here goes beyond mere hope, and we truly need to commit to these endeavours. 

In addition to this, we also believe that this shift will have an impact on the way people think and work. There is always this fear - will AI replace me? And I believe it won't. Because technology never truly replaces people; it merely finds different ways for people to be employed. I think AI will follow the same trajectory. What we envision is that we will enable our people to have a bit more time to work on different things. We primarily focus on two areas: 

1. Allocating time for employees to upskill themselves, recognizing that change is inevitable and we need to empower them to adapt; and,
2. Utilising the additional time gained from enhanced productivity to engage in more AI-driven projects, as the future lies in AI.

We believe this approach will benefit us in several ways. For instance, it will enable us to be closer to our clients, especially in situations where a customer must wait for assistance from an agent. Instead of waiting, the customer can interact with an AI programmed to converse naturally before being transferred to a human representative. This approach not only fosters closer relationships with our clients but also has the potential to increase revenues. By implementing more streamlined processes, we can introduce tailored products to the market more quickly, leveraging the resources of our existing employees. Additionally, it should enhance our internal processes, making them faster, more efficient, and automated, ultimately leading to improvements in the bottom line.

How to evaluate productivity changes resulting from upskilling employees in digital skills or utilising AI?

When it comes to upskilling, it often goes hand in hand with increased productivity. Typically, this surge in productivity would be measured by monitoring activity on employees' laptops or computers. However, we've chosen not to take this approach, and we're still in the early stages of our journey, where we want our team members to reflect on their work. During training sessions, we lay out our expectations and encourage them to consider their current processes and explore potential improvements, challenging them to demonstrate their proposed changes within a few weeks. 

As a result, we evaluate productivity through a softer lens, abstaining from rigid, automated metrics - a decision that fosters trust building. We empower our employees, enabling them to recognise their own limitations and determine the best course of action. Hence, we entrust them with the responsibility of assessing their progress.

We also encourage them to present their business cases, facilitating mutual learning and growth, and there are divergent approaches to this endeavour. Some companies employ more mechanical means, such as installing tracking software on computers to monitor application usage and detect behavioural shifts, and using  technology to even analyse email engagement. Depending on the organisational culture, you may opt for one method over the other. At the moment, we're pursuing an alternate path, albeit temporarily, and automated measurement may be considered in our future but is not our current focus.

Tech and HR: Collaboration for effective decision-making on investment strategy

Over the past year, as the Chief Digital Officer, along with the HR department, I have initiated several projects aimed at driving change. These initiatives encompass various aspects, such as refining our direct communication channels with employees and enhancing their ability to engage with the external world. For instance, leveraging platforms like LinkedIn, and collaborating on identifying and utilising tools that streamline the process of mining received profiles, thereby facilitating better decision-making. In essence, my role involves observing external trends and innovations, while the HR department autonomously implements strategies tailored to our organisation's needs. We rely on Anoud Technologies, the IT subsidiary of QIC Group as a dedicated tech provider within our company to handle such matters. This collaborative approach underscores our emphasis on fostering dialogue, learning from others, and continuously adapting to our unique QIC culture.

This paradigm is reflective of broader trends in the region, where HR remains a significant focus area, offering opportunities to attract new talent. However, there's a distinct challenge in retaining key personnel versus non-key individuals, with the latter often being more transient. While newcomers may initially find satisfaction in their roles, ensuring the long-term retention of influential employees poses a greater challenge. This necessitates an HR policy that is agile and responsive to these evolving needs.

How CHROs can take effective decisions for technology investment

I firmly believe that the AI revolution is transforming every aspect of our operations. At its core are people - our employees. As a result, the landscape in HR is undergoing a profound shift. While we have amassed sufficient knowledge and experience in organisational transformation and empowering individuals, we must now adapt our approach.

With AI assuming a larger role in performing tasks, we must empower our employees to focus on higher-order thinking and value-added activities, moving beyond mundane administrative duties. This paradigm shift necessitates a re-evaluation of our practices in hiring, retaining, reskilling, and collaborating with our workforce. However, it's imperative that we heed this advice and evolve accordingly. Our environment is constantly evolving, presenting new challenges and opportunities. As such, we must reorganise our teams within the organisation to align with these shifts.

While some areas may see increased productivity resulting in a reduced need for personnel, we will reallocate resources to departments where individuals can engage in more meaningful tasks. This strategic realignment ensures that we leverage AI to its fullest potential while maximising the value our human capital brings to the organisation.

Sourcing inspiration for disruptive and progressive leadership..

I draw inspiration by observing trends, networking with industry peers, attending conferences, and discovering emerging companies. Keeping abreast of the latest developments in insurtech and monitoring the evolution of new industry players are paramount. Moreover, regular interactions with prominent tech entities and absorbing their insights are indispensable aspects of my role. This ongoing commitment to staying informed, fostering learning, engaging with stakeholders, and embracing innovative concepts is central to my responsibilities. I am consistently in pursuit of fresh opportunities and avenues for future exploration. It's this forward-thinking approach that propels me, fueled by the excitement of envisioning potential outcomes and exercising a touch of creativity along the journey.

Inspiration to Action: Effective ways to execute ideas for business transformation and goals..

Over the course of my life, I've acquired a toolkit and learned valuable lessons in transformation that can be tailored to fit specific needs. Nowadays, I approach Gen AI projects with a different mindset compared to simply implementing new technologies or ideas within an organisation.

However, delving deeper, it's evident that storytelling plays a crucial role. A compelling narrative is essential—it serves as the guiding mission that unites and motivates individuals. To introduce something new, you must persuade others of its value and evoke a genuine sense of belief in its potential. Additionally, achieving swift results is paramount with agile methodology enabling us to deliver rapid, incremental progress.

Innovation demands experimentation and iteration, and small increments in testing and iterating allow us to steadily progress towards our overarching goals. It is crucial to maintain a long-term perspective, avoiding the trap of solely focusing on short-term objectives. Instead, we should strive for exponential growth, aiming for a 10x mindset, encouraging bold thinking and ambitious goals. By thinking big, we position ourselves to achieve significant advancements, surpassing mere incremental progress.

Strategies for inorganic business growth with digital talent integration..

The approach varies depending on the specific cases at hand. I have seen investments made in smaller companies, allowing them to operate relatively independently while providing guidance and support. This setup differs from a traditional startup model; instead, these companies focus on solving specific problems, and the insights gained from these endeavours accelerate our own learning and progress.

Regarding larger M&A activities within a company, success hinges on the alignment of visions between the two entities involved. People are at the core of any merger's success; it's not merely about acquiring assets but about integrating talented individuals into the larger organisation. Without a shared vision, employees from the acquired company may opt to leave, which is counterproductive to the merger's goals.

This principle holds true regardless of geographical location, although it's perhaps less relevant in the Middle East, where mergers are less common. However, I anticipate this changing in the future as more companies in the region explore such opportunities. Establishing a compelling narrative surrounding the merger facilitates smoother execution and integration.