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The gambling industry's sly new way to suck money from desperate Americans

By: Rob Price
6 January 2025 at 01:06
AI robot hand guiding human hand to roll the dice

Getty Images; iStock; Natalie Ammari/BI

Narrativa is among a crop of startups seizing on the artificial intelligence boom to enthusiastically automate writing tasks that would once have fallen to humans. From penning regulatory documentation for Pfizer to zhuzhing up marketing copy for insurance and e-commerce firms and helping generate breaking news articles for The Wall Street Journal, the Los Angeles-based Narrativa boasts roughly 50 clients in various industries. But one of its core focus areas, comprising a quarter of its business, is a little more polarizing than the rest: gambling.

Working with major industry players like 888 and Betway, Narrativa uses large language models to pump out everything from automated summaries of sports games to SEO-friendly reviews of online casino games and promotional social media posts. With no humans required, the 20-person company's AI tools produce 10 million words a month for gambling clients β€” the effective output of 170-odd full-time writers producing a grueling 3,000 words a day. It's all in service of enticing gamblers to place more bets.

"You want to create a community, you want people coming back for more," Matthew Rector, Narrativa's vice president of content, says. "You want to foster that environment, and our content helps facilitate that."

Sam Altman, Elon Musk, Satya Nadella, and the tech industry's other top impresarios talk a big game about how AI may one day attain sentience, solve the climate crisis, and lead society to a post-scarcity economy. Today, though, the technology is being embraced by traditional industries for more prosaic β€” and mercenary β€” aims. Key among them is the gambling industry, which is rapidly adopting AI for everything from writing alluring online marketing copy to identifying and helping problem gamblers to tracking people and perfecting the physical layout of casinos.

The ultimate goal: to harvest ever more money from gamblers, by profiling them, feeding them content and games personalized to their whims, and cajoling them to stay longer and make bigger bets.


The gambling industry, much like AI, is in the middle of an unprecedented gold rush. In 2018, a US Supreme Court ruling allowed states to legalize sports betting; nearly 40 states since did exactly that. Major investments have since flooded in, with some gambling stocks hitting record highs and private-equity firms jumping into multibillion-dollar deals with gambling and casino companies.

No longer bottlenecked by the limits of human sportsbook odds calculators, every moment of a sports game can be turned into a wager.

Meanwhile, consumers' wallets have been emptying: Americans bet a record $120 billion in 2023, according to the American Gaming Association. A study by California researchers released in 2024 estimated that legalized gambling across America may result in as many as 30,000 bankruptcies and an additional $8 billion in debt collections each year. Another paper out of Kansas found that average household investments in the stock market dropped in states where gambling was legalized by roughly $50 per quarter. (In Brazil, which legalized online gambling in 2018, as much as one-fifth of welfare money is now spent directly on gambling, the AP reported in November.)

Under the hood, artificial intelligence is helping power this surge.

Several online betting platforms, for example, offer "micro bets," which allow gamblers to bet in real time throughout the game β€” who gets the next touchdown or makes the next tackle, whether the next play will be a run or a pass. AI companies like SimpleBet (recently acquired by DraftKings for $195 million) have automated processes that allow the maximum number of possible micro bets to increase by an order of magnitude. No longer bottlenecked by the capabilities of human sportsbook odds calculators, every moment of a sports game can be turned into a wager. Won your bet that Lamar Jackson would throw on 2nd and 10? Why not bet again that he'll scramble for the first down on 3rd and 3?

Physical casinos are also looking to harness AI for efficiency gains. nQube, a Canadian startup run by a physics professor, uses machine learning to optimize the placement of slot machines on casino floors, profiling players and the performance of one-armed bandits individually and collectively β€” replacing an older generation of floor-manager intuition and basic analysis. Some of nQube's findings have been counterintuitive: It turns out that removing the total number of slot machines can often increase the casino's "win," if the machines are arranged in a way that redirects players to games where they'll make larger bets.

Jason Feige, a cofounder of nQube, had been working on computational astrophysics when his partner, Stasi Baran, found a scientific paper about the problem of optimal casino floor planning. Though neither had any gaming experience, they both realized their work could be a fit. "I like math and I like hard problems, and she brought me just a monster of a problem and I just fell in love with it," Feige says. "I have never seen data as clean and as comprehensive as what you see in this industry, largely because it is so heavily regulated. But that combined with the kind of powerful AI systems that I've been building, it was just such a natural fit. I just absolutely fell in love with the industry."

The prospect of deeper AI integration is definitely in the air. At one of the gambling industry's biggest events, G2E, a glitzy conference held in Las Vegas in September, there were packed panels on AI in sports betting, women in AI, AI-powered behavioral analytics and "responsible gambling," and AI for customer relationships.


One of the most enticing, and controversial, uses of AI in gambling is customizing casinos β€” virtual and on the floor β€” to each gambler.

Just as Netflix uses machine learning and data science to tailor each user's feed to what they're most likely to binge, the startup Future Anthem uses similar tools to keep users hooked on casino websites. The UK-based software provider builds a personalized, dynamic homepage, presenting the exact right game β€” bingo, slots, poker β€” to cater to a player's desires at the exact right moment, offering bonuses if the player is getting dejected and keeping them betting for longer.

"We have machine-learning models that are understanding and humanizing that player, that player data," says Ian Tibot, Future Anthem's chief commercial officer. "We see every single spin of a slot, we see every single bet, and we actually understand the experience that the player is having by creating the concept of a session out of that data, and that allows us to understand changes in patterns of behavior."

Brick-and-mortar casinos are also digitally profiling their users. Some locations have RFID chips embedded in every gambling chip, tracking how each gambler is playing and building a profile that automatically directs human workers to intervene as needed β€” an extra free drink here, a bonus spin there. "Before it used to be like a pit boss maybe having their eyes on 40 players across five tables" to monitor bet sizes and manually assign perks and freebies, says Kasra Ghaharian, a researcher at the University of Nevada, Las Vegas, International Gaming Institute. "It wasn't very accurate," he says. AI allows casinos to "be much more precise in how you're tracking that activity."

Beyond using AI for efficiency gains and user profiling, the industry's ultimate vision for employing the technology is much more ambitious β€” and unsettling.

In a research paper published last May, the consultancy giant Deloitte's Global Lottery and Gambling Centre of Excellence predicted a future where every game could be personalized in real time to appeal to individual gamblers. Generative AI, the authors wrote, could "allow the games themselves to generate content based on the explicit or even implicit actions of players, from instantly generated new items and playing levels to in-game characters that can have lifelike discussions."

What if you had a casino that was very similar to the new generation of self-service Amazon stores where you don't need cash and you don't need people? Christina Thakor-Rankin

The technology, they continued, could create "individually themed online slot games that can respond to a player's voice and even generate novel content in response to a player's behavior and game history." Generative AI chatbots the players could talk to, games with themes automatically tailored to their preference β€” the ultimate filter bubble. Social media's endlessly personalized carousel of content is already notoriously addictive, and the damaging parasocial relationships that can be formed with AI chatbots are currently under a microscope following reports of suicide and self-harm linked to a popular provider. Adding these elements to the famously powerful money-extraction machine that is online gambling is a potent combination.

Gambling is historically a human-centric business β€” gamblers try their luck against the house, for better or worse. But Christina Thakor-Rankin, a veteran industry consultant based in the United Kingdom, dreams of an automatically managed brick-and-mortar casino in the years and decades ahead, akin to Amazon's automated Go convenience stores, with unnecessary human staff costs eating into the casino's margins.

"Look at the amount of operating expenditure required in terms of serving customers, monitoring customers, keeping them safe, people who work in the cage or the cashier pit bosses. What if you had a casino that was very similar to the new generation of self-service Amazon stores where you don't need cash and you don't need people?" she asked. "How would that kind of technology transform a world of sportsbooks, but also land-based casinos?"

At least one casino workers union, the Culinary Workers Union, has raised concerns about the risk of blue-collar jobs in Las Vegas being automated. In 2019, The Nevada Independent reported that between 38% and 65% of casino jobs (depending on the study cited) in the south of the state could be automated over the next decade and a half, calling the city "one of the most vulnerable to automation in the entire country."

But for many gamblers, a trip to Vegas isn't just a transaction β€” it's an experience, punctuated by banter with dealers, table service, shows, and the seedy glamour of the strip. It remains to be seen if they will accept a robot substitute.


Artificial intelligence may be a moneymaker for gambling companies, but the companies say it's also something else: a remedy for problem gambling.

Playtech, a European gambling software provider, is one of several firms using AI to try to suss out when a gambler is demonstrating signs of addiction or problematic play and intervene. Part of this is recognizing a player's patterns β€” larger-than-usual bets, or declined deposits, or playing at unexpected times β€” and interjecting with prompts suggesting they take a break. (Future Anthem says its systems can also detect aberrant behavior and automatically check in with target gamblers.)

"Online gambling companies have lots, tons of data about their players because every single bet or every spin on a slot, every single deposit, the time you spend online, there's lots of information," says Francesco Rodano, Playech's chief policy officer. "So we train an AI model to analyze this behavior and recognize possible harmful patterns."

Playtech and other gambling companies are also developing chatbots that gamblers can talk to about addiction β€” the logic being that because gambling addiction is stigmatized, addicts may actually be more comfortable talking to a nonhuman.

Rodano acknowledges that the same technology that could help problem gamblers could also be used to exacerbate their addictions. "If you use a tool like ours to identify vulnerable players, in theory, you could use that information to target them β€” which is the opposite of what the tool is intended for, which is totally unethical," he says. "If you operate in a regulated market, it's very unlikely to happen because the regulator would notice that and clamp down."

Amid frothy valuations and wild hype, there's a risk of overstating the technology's near-term promise β€” particularly the more giddy ideas, such as Thakor-Rankin's predictions of a Caesar's Palace augmented with robotic, voice-activated "Centurions." And some industry insiders say that what's now called AI might be considered statistics or big data, just rebranded.

"I like to say that we've been doing AI since before it was cool and this new age of AI hype β€” it's been very interesting to navigate because on the one hand, everyone wants to talk about AI, which is great for us," says Stasi Baran, nQube's cofounder.

"On the other hand, there's so much noise to sift through for our customers and for us as well to determine, everyone says that they've got an AI product, but what's actually real and what actually brings real value? I mean, that's difficult to determine. I think there's a lot of overnight AI experts out there, and that concerns us."

This AI frothiness isn't unique to the gambling industry, and the space has long had a nose for innovations that boost its bottom line β€” from the development of electromechanical slot machines in the 1960s to the creation of loyalty programs for high rollers in the '80s. As ever, the house always wins.


Rob Price is a senior correspondent for Business Insider and writes features and investigations about the technology industry. His Signal number is +1 650-636-6268, and his email is [email protected].

Read the original article on Business Insider

A timeline of OpenAI's rocky 2024

23 December 2024 at 13:43
Image of Sam Altman
OpenAI lost executives, achieved a historic valuation, and started the transition to a for-profit company in 2024.

Justin Sullivan/Getty Images

  • OpenAI reached new funding and valuation heights in 2024.
  • The ChatGPT maker also saw longtime employees depart and a legal fight with Elon Musk.
  • Here are the biggest moments from OpenAI's roller-coaster year.

OpenAI cemented its place as the most valuable name in artificial intelligence in 2024 β€” and set itself up for more growth. The path wasn't entirely smooth.

After starting as a nonprofit almost a decade ago, OpenAI officially started moving toward converting to a for-profit company this year. It also wrapped up a historic funding round. All that came as CEO Sam Altman emerged with his role at the company intact after his temporary ouster last year.

But legal challenges remain for OpenAI, including court battles with Elon Musk, who co-founded the startup, as well as some of the nation's largest newspapers. The company also lost several high-profile employees, including some who were there at its start in 2015.

Here are the highlights of OpenAI's rocky year.

At the start of 2024, OpenAI was still reeling from the attempt to oust CEO Sam Altman.
Sam Altman
Sam Altman

Getty Images

OpenAI's board of directors removed Altman as CEO in November 2023, saying it didn't have "confidence in his ability to continue leading OpenAI."

A few days later, though, Altman was back as the startup's chief executive, and there was a new board, too. OpenAI employees reportedly refer to the period as "The Blip."

Details about the drama, such as exactly who had pushed for Altman's ouster, tricked out over the following weeks and months.

In December, Altman told Time that the ordeal was tough for him but that OpenAI emerged more unified than before. "I wouldn't wish it on an enemy. But it did have an extremely positive effect on the company," he said at the time.

Elon Musk's xAI raised billions to take on OpenAI
Elon Musk in a meeting
Elon Musk

Allison Robbert/Getty Images

The Financial Times reported in January that xAI was seeking to raise as much as $6 billion at a valuation of $20 billion. Founder Elon Musk has framed the company as a challenger to OpenAI, which he co-founded with Altman. Musk left OpenAI's board in 2018.

OpenAI reached an $80 billion valuation in February
Sam Altman presenting onstage with the OpenAI logo behind him.
OpenAI CEO Sam Altman

Jason Redmond/AFP/Getty Images

A deal valued OpenAI at $80 billion, about triple its last valuation, The New York Times first reported in February. Company employees could cash out their shares as part of the tender offer.

Elon Musk sued Sam Altman and OpenAI in February
Tesla CEO Elon Musk (left) and OpenAI CEO Sam Altman (right).
Tesla CEO Elon Musk (left) and OpenAI CEO Sam Altman (right).

Beata Zawrzel/NurPhoto via Getty Images; Andrew Caballero-Reynolds/AFP via Getty Images

Musk sued Altman and OpenAI in February, saying that the company "has been transformed into a closed-source de facto subsidiary" of Microsoft. That meant that OpenAI was now generating profit in violation of its nonprofit mission, Musk said in the lawsuit.

Altman and other OpenAI executives responded in a blog post in March. The post said that Musk himself had talked to the company about making OpenAI a for-profit entity, including potentially merging it with Tesla.

Musk withdrew his lawsuit in June, though the issue would resurface in the fall.

An SEC investigation into OpenAI came to light in February
SEC
The SEC logo

Jonathan Ernst/Reuters

The SEC investigation was focused on whether OpenAI misled investors, The Wall Street Journal reported.

Unnamed sources told the Journal that the investigation was a response to the former OpenAI board's statement in November that Altman was not "consistently candid in his communications" before he was temporarily ousted from the company.

Sam Altman won a return to OpenAI's board in March
Sam ALtman
Sam Altman

Riddhi Kanetkar / Business Insider

OpenAI's board "unanimously concluded" that Altman and President Greg Brockman were "the right leaders for OpenAI," Chair Bret Taylor said in March.

Altman rejoined the board as three new members, all women, also took seats.

OpenAI cofounder Ilya Sutskever announced in May that he was leaving OpenAI
Ilya Sutskever
Ilya Sutskever

Jack Guez/Getty

Sutskever, also chief scientist at OpenAI, was one of the group that attempted to push Altman out of the company in November. He later said that he regretted being part of the movement to oust Altman.

In a farewell post on X, formerly known as Twitter, Sutskever said he was confident that OpenAI would create artificial general intelligence that would be "both safe and beneficial."

OpenAI swiftly stopped using ChatGPT's "Sky" voice in May after claims it sounded like Scarlett Johansson
Scarlett Johansson in a tan suit
Scarlett Johansson was not pleased by OpenAI's voice chat.

NBC

OpenAI pulled the voice from ChatGPT amid a public furor, adding that it wasn't an imitation of the movie star but belonged to another actor.

Some users had compared Sky to the voice of an automated assistant in the 2013 movie "Her," which Johansson voiced.

Johansson said that Altman had asked her to voice ChatGPT but that she declined. When OpenAI went ahead with a voice that sounded like hers, Johansson said she was "shocked" and hired legal representation.

OpenAI faced fresh criticism over safety as summer began
Sora video with OpenAI above
OpenAI just launched its AI video generator Sora to the public.

CFOTO/Future Publishing via Getty Images

In addition to the "Sky" voice incident, a New York Times report in early June added to OpenAI's image problems. It featured concerns from current and former OpenAI employees that the company wasn't doing enough to prevent its artificial intelligence from harming or destroying humanity.

An OpenAI spokesperson at the time reiterated to Business Insider the company's commitment to safety, highlighting an "anonymous integrity hotline" for employees to voice their concerns and the company's safety and security committee.

A Vox report also said that OpenAI pushed restrictive NDAs on departing employees and put their vested equity at risk if they didn't agree to them. The company told BI it would make " important updates to our departure process."

All of that created a public relations challenge for Altman.

Apple said it would integrate ChatGPT into its software in June
ChatGPT logo on screen with OpenAI logo behind
ChatGPT

NurPhoto/Getty

During its annual Worldwide Developer Conference in June, Apple said it would offer ChatGPT within its software, such as through Siri.

The partnership gives OpenAI potentially vast reach, with ChatGPT now within easier reach of millions of iPhone users.

Musk filed a new lawsuit against OpenAI in August; in November, he amended it to include Microsoft as a defendant
OpenAI x Microsoft Microsoft Build
Sam Altman, left, speaks with Microsoft's Kevin Scott.

Microsoft

In August, Musk filed another lawsuit in which his lawyers argued that OpenAI executives "deceived" Musk into cofounding the company by playing on his concerns about the existential risks AI poses.

In November, Musk added Microsoft as well as one of its board members, Reid Hoffman, who also used to sit on OpenAI's board, as a defendant in the suit. It alleged that Microsoft was working with OpenAI to create a monopoly in the artificial intelligence world and extend "lavish compensation" to employees.

Musk also named Shivon Zilis, a former OpenAI board member and mother of three of Musk's children, as a plaintiff.

In September, OpenAI announced that it would become a for-profit company
ChatGPT search option
A ChatGPT search bar.

OpenAI

OpenAI was founded as a nonprofit in 2015, but the company said that it would change that status over the next two years.

The process will involve multiple steps, such as giving OpenAI's investors equity stakes in the new entity and earning government approvals, Business Insider previously reported.

The plan has drawn pushback, including from Musk and Meta CEO Mark Zuckerberg.

CTO Mira Murati said in September that she would leave OpenAI
Mira Murati
Mira Murati

Bloomberg/ Getty Images

Chief Technology Officer Murati said she was leaving OpenAI "to create the time and space to do my own exploration."

Murati reportedly played an important role in the attempted ousting of Altman from OpenAI. She served as CEO temporarily before Altman was reinstated.

President Gregg Brockman also said in August that he would take an extended leave of absence; he returned in November.

Other OpenAI executives and employees left the company throughout 2024
Andrej Karpathy wearing a black sweater
Andrej Karpathy left OpenAI in 2017 to join Tesla but returned in 2023.

San Francisco Chronicle/Hearst Newspapers via Getty Images

Including Sutskever, at least nine notable OpenAI employees have left the company in 2024, Business Insider found. Among them were OpenAI co-founders Andrej Karpathy and John Schulman.

OpenAI raised a $6.6 billion funding round in October β€” the biggest in Silicon Valley's history
OpenAI CEO Sam Altman addresses the Station F in Paris
OpenAI CEO Sam Altman

JOEL SAGET/AFP via Getty Images

The funding round valued OpenAI at $157 billion, putting it on a similar footing with Uber and AT&T.

Thrive Capital led the round. Other major investors in OpenAI's round included SoftBank, Tiger Global, Microsoft, and Nvidia.

In November, xAI told investors it had raised $5 billion at a $50 billion valuation, The Journal reported.

In November, OpenAI allegedly deleted legal data in its legal fight with The New York Times and other newspapers
new york times building
The New York Times' headquarters

Avalon/Universal Images Group via Getty Images

Lawyers for the newspapers were reviewing OpenAI's training data as part of the lawsuit.

In November, they learned that "OpenAI's engineers erased all of the News Plaintiffs' programs and search result data," according to a filing in the case. OpenAI did not respond to a request for comment at the time.

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6 ways DEI programs are evolving as companies reorganize, home in on employee skills, and leverage the power of AI

26 November 2024 at 13:00
Workforce Innovation Series template with vertical, colorful stripes on the left and bottom sides. A blue-tinted photo of a diverse group of business people in a convention center

Getty Images; Andrius Banelis for BI

This article is part of "Workforce Innovation," a series exploring the forces shaping enterprise transformation.

Diversity, equity, and inclusion programs have become the subject of a heated, politicized debate over the past few years.

Several major corporations, including John Deere, Microsoft, and Molson Coors, have made headlines recently for rolling back their DEI initiatives.

Meanwhile, Walmart, the world's largest retailer, announced it would no longer use the acronym in its communications and would not extend its Center for Racial Equity, a nonprofit established in 2020 with a five-year, $100 million commitment to address racial disparities.

Even so, as we've reported in this series, many companies remain committed to the values of DEI β€” but are shifting their strategies for a new era. Whatever the motivation of the companies, it's clear that DEI is undergoing a period of change.

Business Insider asked its Workforce Innovation board to participate in a roundtable to discuss how DEI programs are evolving. We wanted to find out what structural changes are happening, how companies can continue to build trust with employees, and what role artificial intelligence is poised to play.

The consensus around the virtual table was that the focus of the DEI story is shifting to business outcomes and the skills needed to achieve them. "We can't do it the old way," Purvi Tailor, the vice president of human resources at Ferring Pharmaceuticals, said. "We have to have the conversation in a new way. It becomes much more about inclusion and changing mindsets and creating awareness about your own biases."

Skills-based hiring is one way companies are working to identify diverse candidates organically. "Let's focus on the skills that are required for the future of work and what we are looking for from leaders in our company," Maggie Hulce, the chief revenue officer at Indeed, said. "And then be more consistent in the application of holding that bar."

By homing in on the skills organizations need to succeed and how to use AI tools to help surface in-house talent, companies could move the DEI story away from conflicts and focus on its benefits.

"It dismisses this notion that you have to lower the bar if you want diversity in your organization," said Spring Lacy, the global head of talent acquisition and DEI at Verizon. "We've got lots of super smart, super skilled people of color, women, people with disabilities, LGBTQI community, who just aren't seen for all of the biases that you talked about. You don't have to lower the bar."

Roundtable participants included:

  • Anant Adya, executive vice president, service offering head, and head of Americas Delivery, Infosys
  • Lucrecia Borgonovo, chief talent and organizational effectiveness officer, Mastercard
  • Chris Deri, president, Weber Shandwick Collective
  • Maggie Hulce, chief revenue officer, Indeed
  • Spring Lacy, vice president, chief talent acquisition and diversity officer, Verizon
  • Purvi Tailor, vice president of human resources, Ferring Pharmaceuticals USA

Here are six key takeaways from the discussion.


Skills-based hiring, supercharged with AI tools, helps companies find 'hidden figures'

Skills-based hiring is a strategy that some companies are using to identify candidates and reduce bias in the hiring process. The approach focuses on the skills needed to fulfill the role, minimizing qualifications like college degrees or previous job titles.

With artificial intelligence, talent leaders can accelerate the hiring process and uncover strong candidates within their companies that they might have missed before.

Lacy, who was previously an HR leader at Prudential, said AI is empowering existing employees to showcase their abilities more effectively.

"When went to recruit internally, and we pulled people based on the skills profile and not based on proximity bias or any other bias, our slates were inherently more diverse," Lacy said.

The critical piece for companies is to figure out the best way to capture an accurate and comprehensive view of employees' skills.

Verizon uses the Workday HR platform and is piloting a program with its partner company, Censia, that uses an AI tool to help employees craft their profiles.

Lacy has seen how difficult it can be for employees to isolate their skills in ways that might help them be identified for new opportunities. "When we said to employees, 'Go build a skills profile,' the page was blank," she said. "It was really hard for people to get started." AI tools can pull information from a range of sources and serve up a framework that guides employees through the process.

Mastercard has launched an employee-skills initiative with the software company Gloat. "It has been a really great way to democratize access to opportunities for employees," said Lucrecia Borgonova, Mastercard's chief talent and organizational effectiveness officer.

The outcome for companies can be a more diverse talent pool from inside the house.

Lacy said Verizon is conscious of the potential for bias in the AI programs, but early indicators suggest that more individuals are being considered for roles than in the past.

"We are uncovering hidden figures in this organization because there are people who we don't know, because they are not well networked, they don't have sponsors," Lacy said. "If not for this technology, we wouldn't have known that they were there, to be able to lift them and perhaps provide them with other opportunities."


Leaning into the 'I' of DEI β€” inclusion

DEI programs have many aspects, including employer branding and attracting a diverse talent pool, screening and hiring, and compensation.

Inclusion relates to a person's workplace experience and their sense of belonging at an organization, which research suggests makes people want to join and stay at a company. Benefits are an essential part of that employee experience, and companies may want to think about how these packages reflect their values to staffers and prospects alike.

Ferring Pharmaceuticals introduced a program in 2022 that includes unlimited financial support for creating a family β€” through IVF, adoption, surrogacy, or birth β€” for all employees, regardless of gender or sexual orientation.

Ferring's Tailor said it is one way that the company emphasizes its approach to its entire workforce.

"We talk about more of the 'I' than we do about the 'D' and the 'E,'" Tailor said. "We do it to show the kind of culture and working environment that we want to have. It's all about inclusion and bringing your whole self to the workplace."


Linking AI tools with culture and leadership

As companies develop new hiring strategies, culture does not stand still.

"Inclusion and belonging are essential parts of the culture, the value proposition, and key to driving the outcomes of our business," said Mastercard's Borgonovo. "It's really important that we drive shared accountability across our 34,000 employees around the role that each of us has to collectively play in creating this culture of inclusion where everybody feels that they can belong."

Borgonovo said that Mastercard is exploring ways to leverage AI to help business leaders across the organization improve efficiency and be more intentional about DEI and other workforce goals.

"How do we enable people, leaders, from an automation or efficiency standpoint? How do we help them be more proactive?" she said. "How do we help them create more bandwidth by automating certain processes so then they have more time to coach and develop their teams."

She said the company is exploring how AI can be used to coach leaders to role-play and get feedback on how they engage with their teams. "AI can be your coach, your copilot, and help augment your leadership," she said.


Ditching the DEI silo

Indeed's Hulce said a lot of time goes into optimizing the company's structure. "How do you make it the norm that equity needs to be built into processes, period," she said.

It's not just about interviewing and hiring diverse candidates, but about leading teams through every opportunity and decision, including promotions, performance bonuses, and assignments.

"How do you measure that? How do have regular conversations with managers at different levels in the organization about the expectation that we will be looking at equity in all of these steps," Hulce said.

Indeed once had a DEI team that worked parallel to the HR function. But when the previous HR leader left the company, they decided to reorganize and embed the DEI discipline across the business, elevating the previous head of DEI to chief people officer.

Hulce said realigning DEI was essential to scaling goals, standards, and accountability across the company. "It's almost an impossible task to ask a separate group to influence everybody else unless it's built into core processes somehow," she said.

Infosys is also considering its optimal DEI structure. "We are slightly decentralized," Anant Adya, an executive vice president, said. The global company has a centralized corporate DEI team, with DEI councils at the individual industry units. Adya said the company will leverage AI tools to help measure effectiveness.

Hulce emphasized the need to regularly and consistently review management decisions. "It can't be just once a year," she said. "You evaluate, you check, and if there's a correction to be made, you say, 'OK, guys, something looks amiss.' The expectation is we will be following equitable processes."


Using AI to scrutinize hiring, while retaining the human touch

Adya said Infosys is using AI to analyze patterns in its hiring data.

"It is very important to look at and analyze the data based on how hiring patterns are being used and if there is any bias in the hiring process itself," he said.

AI will grow increasingly important in analyzing the efficacy of various recruitment sources. "A lot of times we see that employee referrals actually work the best," he said. "But that might not be true when it comes to specific DEI initiatives."

By enlisting AI tools to analyze online sources, university partnerships, and other talent alliances and platforms the company is using, Adya said it should be able to optimize its approach around specific goals.

But all the AI analysis in the world does not negate the need for the human touch. Adya said that sometimes there's a perception at the company that hiring is being done only to hit certain DEI benchmarks and that the process is too onerous.

Adya said that hosting a "clear dialogue" about the company's decision-making process around recruitment methodology has helped employees understand the company's rationale.

"It's always better to sit down and explain why this is critical for the unit and why it is important," he said. "Sometimes open dialogues, going back to the old school, not using AI or gen AI, but just sitting and talking and removing that uncertainty and lack of transparency helps a lot."


Leveraging AI-powered insights to change the DEI story

Proponents of DEI maintain that a diverse, inclusive workplace yields better business results, and there are studies that also support that view.

Opponents of DEI, said Chris Deri, the president of Weber Shandwick's corporate advisory business, tend to focus on the methodology of achieving workplace diversity, such as companies actively seeking women for leadership positions, seemingly at the expense of male candidates.

"That's what DEI opponents are focused on," Deri said. "Like, how do you pull together a candidate pool, like having women candidates somehow be seen to be at the front of the line."

Deri said that companies should work to shift the perspective to DEI outcomes and tangible business benefits β€” and should leverage artificial intelligence to surface insights that might not be obvious.

"AI can do that in a way that human knowledge management and analysis is not going to be able to do," Deri said. "We can use the power of AI to look across our enterprises' data and knowledge and start to collect the outputs and outcomes of the principles of applying DEI. "

Deri said that if a large language model can be trained on the outcomes, such as attracting new customers, creating new products, and building community trust, "that might be something that uses technology to help the storytelling about DEI. We really need to change the entire story now."

Read the original article on Business Insider

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