Former Nestle chairman and CEO Peter Brabeck-Letmathe batted for the upskilling of workers saying it is the most important thing in the new technology revolution, which is driven by artificial intelligence (AI), but he also equally stressed the need to implement stronger regulations to govern AI.    

In a keynote speech at the opening of the two-day Asian Forum on Enterprise for Society (AFES) on Tuesday, Sept. 26, organized by The Asian Institute of Management – Ramon V. Del Rosario Sr. Center for Corporate Responsibility, Brabeck-Letmathe made this point as he discussed the responsibility of “creating shared value” not just to company shareholders but to the society. 

Brabeck-Letmathe, who served as Nestle chairman and CEO from 1997 to 2008, joined an impressive roster of global business luminaries, thought leaders, and influential policy shapers for insightful discussions, dialogues and networking opportunities at this year's AFES on the theme, "Boosting Innovation and Inclusion Together." 

When asked by the media on the issue of technology, particularly the impact of AI on workers, Brabeck-Letmathe pointed out that any technological revolution has an effect on the labor market. For instance, he cited the steam engine, which replaced not only the role of humans, but also of animals. Same thing with electricity, added Brabeck-Lethmathe, who is now Nestle chairman emeritus. 

He admitted that AI is going to replace a few jobs, but it will create new opportunities for new and better jobs. 

The problem is, he said, is not the jobs that disappeared but that employers have to reskill the workers to be able to take on the new jobs otherwise they will become victims of technological revolutions. “So, the most important thing is for government to reskill the population for the new jobs,” he said. 

As part of creating shared value, he said, companies have to also continuously help train and educate the workforce. 

He noted that when digitalization was first introduced 20 years ago for a particular company, there was fear that developing countries would lose jobs, but because people were trained further, “not one person lost his job but everybody had a job that was more fulfilling than he had before.” 

Meantime, Brabeck-Letmathe said that even as AI is a very good thing, he also equally stressed the need for stronger government regulations. 

“AI is very good as long as we can control it and guide it,” he said. To control it, Brabeck-Letmathe proposed “We have to have stronger regulations on what AI can do and what it should not be doing.” 

If there are no strong regulations on AI, he warned that this new technology might just be making decisions that humans are supposed to do. 

Brabeck-Letmathe is passionate about expanding networks through multiculturalism and championing diversity in the workplace. Likewise, his advocacy for “shared value” paved the way for holistic business strategies to focus on sustainable practices in value creation to help enterprises achieve innovative and inclusive business goals.