Business Model Red Flags 
Leadership, Governance, & Culture 
Tool for Indicator Design 
Quality of Relationships 
RED FLAG # 21
Rapid digitalization of processes and key functions such that planning or support for upskilling or redeployment of displaced employees is challenging to achieve.
For Example
Businesses that employ workers in routine physical roles that can be substituted with AI and robots, or in roles where AI and robots can work alongside people across sectors such as:
- Manufacturing
- Transport and logistics
- Agriculture
- Extractives
Businesses across multiple sectors where
Generative AI can perform key functions or where digitalization makes certain white-collar jobs redundant, thus replacing a significant part of the workforce, such as:
- Retail and e-commerce
- Marketing and advertising
- Entertainment and content creation
- Education and e-learning
- Healthcare
- Financial services
- Information Communication and Technology services
- Power generation and distribution
Higher-Risk Sectors
Digitalization is happening across more or less all industries, in different forms. The potential displacement of workers is currently most prevalent/expected in:
- Manufacturing: predominantly in the automotive, apparel and electronic industries, but increasingly in the manufacturing of fast-moving consumer goods and garments. Whilst already highly automated, AI is increasingly used to optimize production processes and improve quality control
- Transport and logistics: picking, stowing, moving stock in warehouses
- Agriculture: to replace repetitive tasks in operations that employ a steady year-round workforce, or to perform detailed tasks such as improving crop yields, monitoring soil conditions, and optimizing irrigation
- Extractives: to remove people from underground environments or using unmanned vehicles for transporting materials to reduce costs, achieve longer operating hours and improve health & safety
- Oil and gas: moves towards a more automated renewables sector and greater automation in oil and gas exploration, extraction and processing
- Energy: using AI for predictive maintenance, to enhance energy systems, establish smart grids etc.
- Professional and financial services: increased use of AI and blockchain that replaces routine legal and financial services
- Entertainment and content creation: AI is used to generate music, videos, and other creative content.
- Education and e-learning: AI is used to personalize learning experiences, provide automated tutoring, and generate educational content
- ICT services: AI is used for troubleshooting and maintenance, cyber security, solution optimization and efficiency etc.
