August 20, 2025 Culture is Key to Overcoming Labor Shortages in AI Era

AI can ease labor shortages, but only if companies build trust, train workers, and align culture with technology.

By Gord Mawhinney, President of Americas, Avanade

The labor shortage in manufacturing feels like it’s becoming a tale as old as time, where aging workforces and high turnover continue to threaten industry stability. This frustrating challenge means it can be a constant battle to keep day-to-day operation running smoothly. To adjust, technology continues to be an important tool in the proverbial toolbelt, as manufacturers seek ways to boost productivity and bridge gaps. AI has quickly entered as an exciting enabler. While the potential is undoubtedly there, organizations must be careful not to treat AI as a fix-all. The notion that technology alone can solve the labor crisis is overly simplistic.

Instead of the pace at which AI can be adopted, success will hinge on the ability of organizations to build cultural readiness and trust among the people who keep manufacturing running. Recent research underscores a dangerous disconnect, despite most organizations planning to make AI a top priority for 2025, 44% are stuck in proof-of-concept and 48% are still crafting the business case. If not handled correctly, the gap between ROI expectation and the realities of AI will only grow into a deeper divide.

The real workforce problem is more than just a skills gap

Behind a lack of headcount on the shop floor lies a larger challenge, the structural realities shaping today’s manufacturing workforce. An aging employee base is edging closer to retirement, while attracting younger talent to physically demanding, shift-based jobs remains a constant uphill climb. In manufacturing alone, roles can sit vacant for weeks or even months, with the National Association of Manufacturers and Deloitte projecting the industry will need 3.8 million additional workers by 2033 and as many as 1.9 million of these jobs could go unfilled if workforce challenges are not addressed. High turnover rates compound day-to-day challenges by making production schedules difficult to plan and forecast.

AI is on the table, headcount isn’t the goal

Much like automation, AI should not be viewed as a blunt instrument for cutting costs. Instead, it should be approached as an augmentation to existing staff. This shift in mindset is already underway, 84% of business leaders say their AI investments are aimed at improving efficiency, yet only 9% measure success by reducing headcount. AI should be a co-pilot for the workforce rather than a pink slip generator. For many organizations, the real promise of AI lies in reducing the grind; eliminating repetitive, low-value tasks so employees can focus on higher-impact work.

Even amid a promising shift, many companies are hitting a wall. Too often, AI efforts remain siloed in proof-of-concept mode, unable to scale beyond isolated pilots. The problem rarely sits within the technology, instead surfacing in governance gaps, uneven communication, and lack of training that leave employees guessing how AI will impact their jobs. Uncertainty breeds skepticism, particularly on the front lines, where workers often have little visibility into how AI-driven decisions are made. Without transparency and trust, even the most advanced tools risk becoming shelfware.

A blueprint for culturally-aligned AI deployment

If AI is going to deliver on its promise, companies must overcome a cultural disconnect that can become the single biggest barrier to realizing AI’s potential. The organizations that make this work don’t approach AI as a big-bang rollout. They start small, involve employees early, and keep the process transparent. When workers have a voice in shaping use cases, they’re more likely to embrace the change because they understand what the technology is doing and why it matters. That sense of ownership can transform initial skepticism into advocacy.

Training is another critical piece. Too often, companies spend millions on systems but little on equipping the people expected to use them. Change agents inside the business—those who can bridge technical teams and frontline staff—play an essential role in accelerating adoption. Equity matters too. AI’s benefits can’t be reserved for office-based roles alone. Plant-floor technicians, and field operators deserve the same level of access and support if these tools are going to truly transform work.

Some of the most successful programs rely on iterative deployment, worker co-design, and steady feedback loops to adapt technology in real time. Tech innovation doesn’t transform work—people do.

Trust and retention: the real AI ROI

Building trust through collaboration is the blueprint for turning AI from an abstract promise into tangible, everyday value. That said, concerns linger. Fears of surveillance, job security, and lack of training often cloud perception, particularly in non-desk roles. Companies that treat cultural alignment as an afterthought risk eroding the very trust they need to succeed. AI can bridge the labor gap, but only if employees see it as a tool for empowerment, not control. The winners in this space won’t be the organizations racing to deploy the fastest, they’ll be the ones moving the most thoughtfully, aligning every algorithm with a clear, human-centered purpose.

About the Author:
As President, The Americas, Gord Mawhinney leads Avanade’s largest business unit, overseeing strategy, sales, delivery and operations across the Americas. Working closely with leadership teams in the United States, Canada and Brazil in support of our 5000 Americas employees, Gord ensures delivery of consistent, high-quality outcomes for Avanade’s clients.

Read more from the author:

The U.S. AI Dilemma: Impatient for ROI; Stuck in POC | RTInsights, February 7, 2025

From Vision to Value: Avanade’s AI Playbook | Techcouver, July 15, 2025

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