In Stanley Kubrick’s 1968 critically acclaimed film 2001: A Space Odyssey, Dr. Dave Bowman and Dr. Frank Poole’s artificially intelligent space travel companion, HAL, turns murderous once it discovers their plot to disconnect it. Some say this sinister turn of events is the track humanity is currently on with AI, but others have a more positive outlook of the future: Humans embracing AI to create a better world. Would partnering with HAL have saved Bowman and Poole from their grisly fate? This is the basis for the concept of Industry 5.0.
What is Industry 5.0?
Industry 5.0, first coined by the European Union in 2022, is the next evolutionary step in the industrial landscape (The Samtec Blog). Industry 4.0, a concept that refers to the integration of advanced technologies in manufacturing, has been discussed for many years, but widespread success has been elusive. Recent advancements in technology, including artificial intelligence (AI), have created an environment where technology enablement is much more achievable. Industry 5.0, the next iteration, shifts focus to managing the partnership between humans and machines, aiming to create a more personalized and human-centric approach to manufacturing and production. It is defined by three primary concepts:
- Purpose-driven technology: Unlike previous industrial revolutions, which were primarily driven by profit and efficiency, Industry 5.0 is powered by a purpose that goes beyond economic value. It seeks to make technology work for the good of humanity and society.
- Sustainability and resilience: Industry 5.0 aims to create a circular economy where waste is minimized, resources are used more efficiently, and there is resilience in production processes.
- Human-centric focus: Industry 5.0 emphasizes the collaboration between humans and smart systems. This includes AI-powered robots working alongside humans to enhance workplace processes, with a strong emphasis on employee wellbeing.
What does this mean for organizations?
Industry 5.0 encourages the adoption of AI to create future-focused practices that are better for the environment and society and challenges business models that prioritize profit over environmental and social sustainability. Organizations have already begun to expect this, with 90% of investors considering environmental, societal, and governance (ESG) factors in their investment decisions because organizations with higher ESG scores are less risky (WorldMetrics; EY). In fact, companies with strong environmental and societal practices have a 25% higher stock value compared to their peers (WorldMetrics).
So, where does HR fit in this new industrial revolution?
Purpose-driven technology: No department, save for HR, has the knowledge of existing and needed skills across the organization and the learning and development best practices to be able to lead the organization toward their desired future. It will be up to HR to ensure the organization creates an environment where employees are empowered by advanced technologies to improve work processes ultimately enhancing productivity and efficiency (Communications in Computer and Information Science). This will require fostering a high level of psychological safety, so employees feel comfortable challenging the status quo and trying out new ideas without fear. Industry 5.0 also necessitates close collaboration between HR and IT to leverage their unique expertise to uncover issues impacting employees and develop creative solutions for people-related problems, for example exploring how technological advancements can benefit employees by making tasks less demanding (Journal of Human Resource Management).
Sustainability and resilience: HR has an important role in aiding and leading the organization’s sustainability efforts through their position of creating, owning, and training employees on the organization’s environmentally friendly policies and guidelines. As AI and new technologies become embedded throughout the organization, HR needs to be involved to ensure the organization upholds their corporate social responsibility commitments and assess the impacts of these technologies on the communities they serve and the natural world.
Human-centric focus: Industry 5.0’s connection to employee wellbeing is where HR can really bring their skills to the strategic forefront and shine a bright light on the value they add. In previous industrial revolutions, the organization was the main beneficiary of technological advances; however, Industry 5.0 puts the employee and their wellbeing at the forefront. In this context, HR plays a crucial role in leveraging their employee wellbeing expertise to maximize benefits for both employees and the organization. For example, with AI automating tasks, employees will gain more free time, and instead of filling that time with additional workload, the expectation will be for organizations to return this time to employees, for example by implementing a four-day work week. HR can step in to advocate and share their expertise on how to put employee wellbeing first and why it should matter to organizations.
What does HR need do to lead the way in Industry 5.0?
HR needs to embrace the one area they normally shy away from: technology. This doesn’t mean the expectation is for every HR employee to become a technology expert – there’s the IT department for that. However, HR needs to upskill themselves enough to be able to understand the organization’s technology strategy and identify the emerging skills needed in Industry 5.0 (both technical skills and durable skills). HR also needs to expand their mindset beyond the risks of technology, where they’re normally more comfortable, and understand the benefits of emerging technologies. In fact, if HR proves they’re not able or willing to embrace AI and participate in Industry 5.0, they risk being left behind. But if HR does step up to participate to their full potential in Industry 5.0, they will cement their place as a strategic leader across the organization.
Works Cited:
Chaabi, Meryem. “Roadmap to Implement Industry 5.0 and the Impact of This Approach on TQM.” Smart Applications and Data Analysis, edited by Mohamed Hamlich, Ladjel Bellatreche, Ali Siadat, and Sebastián Ventura, vol. 1677, Springer, 2022, pp. 287-293. Communications in Computer and Information Science.
“ESG Statistics: Major Financial Gains for Companies Embracing Sustainability.” WorldMetrics, 23 July 2024. Accessed 31 Oct. 2024.
Maulana, Boby Akhbar, et al. “Strategic Integration of Information Technology in Human Resource Management: A Pathway to Industry 4.0 and Society 5.0 Synergy.” Journal of Human Resource Management, vol. 46, 2024, pp. 1-10. Universitas Islam Kalimantan Muhammad Aryad Al-Banjari. Accessed 31 Oct. 2024.
Pike, David. “Industry 5.0.” The Samtec Blog, 1 Sept. 2024,blog.samtec.com/post/industry-5point0/.
“Why ESG Performance Is Growing in Importance for Investors.” EY, 11 July 2024.