How to hire for the AI Economy

In his essay, "How the Ivy League Admissions Broke America", David Brooks argues that AI is already good at regurgitating information from a lecture. AI is already good at standardized tests. AI can already write papers that would get A’s at Harvard. If you’re hiring the students who are good at those things, you’re hiring people whose talents might soon be obsolete.

What we can count is not what counts

There is a hierarchy that takes something seriously only when it can be measured and counted. We have found ways to measure intelligence. We have test scores that govern everything from admission to college and even jobs. This emphasis leads to a narrow definition of merit, overlooking essential qualities like creativity, social intelligence, and ethical behavior. Focusing on easily measurable metrics like grades and test scores creates a system that disproportionately benefits the wealthy and privileged, who can afford better educational resources and preparation.  Wealthy parents spend money on coaching their children to create a resume that is valued by the elite colleges. The constant pressure to succeed based on external markers like grades can lead to a focus on extrinsic rewards, causing existential fragility and a lack of intrinsic motivation among high-achievers.  

Metrics like test scores or sales figures may be easy to count but might not truly reflect deeper qualities like creativity, emotional intelligence, or customer satisfaction. When something cannot be reduced to a numerical value, businesses find it easy to ignore it. We must remember that Classical Economics was deeply flawed because it rested on the assumption that people know what they want and will always maximize value. Mathematical models of decision making do not get used when we make some of the most important decisions in our life - getting married or even deciding whether we wish to have children.

Why high grades in school do not predict success in life

The skills required for academic success, such as compliance and persistence, are not the same as those needed for success in life. Success comes from several factors - most of which involve social situations. Academic excellence comes from focusing on one’s own success. In the workplace success comes from collaboration with others. That also implies that others must be willing to contribute to our success.

1. Emotional Intelligence: Navigating social situations, understanding others' emotions, and managing your own are crucial for building relationships and leading effectively. Being able to build trust is one of the strongest capabilities we need to succeed at work.
2. Communication: Success in life often depends on how well you can communicate your ideas and needs.
3. Risk-Taking and Initiative: Career progress often means starting changing careers, moving to a new place or learning new skills. The desire to try something new can open doors.
4. Resilience: Life's setbacks can be more unpredictable and personal than academic challenges. Building resilience helps you bounce back from failures and continue moving forward.
5. Dealing with ambiguity: In life, there isn't always a clear path or external motivation. Being able to set your own goals and stay motivated is crucial.

None of these skills can be measured. They are labeled as soft skills but in reality they are hard to build and take a long time.

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What to look for while hiring

AI is already much better than humans at all the things we have been stressing about. Parents are dragging their toddlers to coding classes. They have not heard that the CEO of Nvidia mention that humans will not need to code in the near future. Schools and colleges are increasingly teaching to the test. If it is not going to be tested it is a “waste of time to know” - is the prevailing mindset. There is no time to explore, have a conversation in the corridor and just lie down to gaze at the stars. The result is a skewed world where only the people who pursue STEM subjects get the nod of approval from parents. Those who pursue liberal arts are greeted with raised eyebrows.

As AI reshapes the skills employers value, it begs the question: how can we best prepare ourselves and future generations for this new reality? Perhaps the answer lies not in chasing the next AI trend, but in rediscovering the timeless power of human connection and collaboration

Email me: abhijitbhaduri@live.com