Key Takeaways
- AI job displacement isn't a future problem; it's a real-time event. Glenn Fogel, CEO of Booking Holdings, saw it firsthand when machine translation entirely replaced human translators at Booking.com.
- The core danger isn't just job loss, but the speed mismatch: new jobs aren't created fast enough, and older workers like truck drivers face immense retraining challenges.
- Fogel argues that companies have a clear obligation to proactively upskill their existing workforce, making them "AI literate" to use new tools.
- Ignoring widespread job disruption could lead to a societal rejection of technology out of fear, which would ultimately harm everyone, especially in a globally competitive world.
- Founders can apply Glenn Fogel's 'Company Upskilling Strategy for AI Job Displacement' to prepare their teams and mitigate the risks of technological change.
The Glenn Fogel's 'Company Upskilling Strategy for AI Job Displacement'
This framework offers a strategic approach for businesses facing the reality of AI-driven job changes.
Prioritize Upskilling: Actively invest in training programs to prepare employees for the future and new tools. 'I am I'd say every day I'm talking with my head of state my state head of head of how can we do the best training? How can we get people so, you know, ready for the future?'
Develop AI Literacy: Focus on making employees 'AI literate' and capable of using AI tools effectively in their roles. 'How do we get them so they are becoming AI literate.'
Recognize Obligation: Understand that even if direct job replacement isn't possible within the company, upskilling helps employees for their careers elsewhere. 'At least they are better skilled for a job somewhere else. And I feel real obligation for that.'
Long-term ROI Mindset: View upskilling as an investment with positive ROI, improving productivity and benefiting the company in the long run, rather than just a short-term cost. 'It's a positive on our life for somebody to be able to use new tools in a better way that are more productive.'
When This Works (and When It Doesn't)
Fogel's strategy applies directly to companies operating in environments undergoing quick technological shifts, especially with AI. It aims to lessen the downsides of job changes, keep talent, and ensure the workforce stays competitive and productive, which helps people see technology in a positive light. This approach makes sense for most mid-sized to large companies that have the resources to invest in training infrastructure and can redeploy workers.
However, for early-stage startups with very tight budgets or highly specialized roles where skills are not easily transferable, implementing all components might be a stretch. A small startup might not have the budget to retrain every displaced employee for an external career, even with the best intentions. In such cases, the 'Recognize Obligation' component might shift from extensive training to providing career coaching or networking support. The core mindset of preparing your team for future tools remains vital, even if the execution scales down.
What to Do With This
Imagine you run a 30-person SaaS startup with a customer support team of five agents. Generative AI tools are now handling 60% of common customer queries. Instead of letting your support team go, use Fogel's framework this week. First, Prioritize Upskilling by immediately enrolling your support agents in courses on advanced prompt engineering and data analysis using AI tools. Second, Develop AI Literacy by making it mandatory for agents to use AI models to draft complex responses and identify customer sentiment trends. Third, Recognize Obligation: even if the AI automates more of their current tasks, train them for more complex roles like 'customer success specialist' or 'product feedback analyst' within your company. If that's not possible, help them update their resumes with AI skills and connect them with hiring managers at companies looking for AI-savvy support talent. Finally, adopt a Long-term ROI Mindset, seeing these training costs not as a burden, but as an investment in a more skilled, efficient, and future-proof customer-facing team that gives your company an edge.