Lattice Scraps AI Worker Integration Plan Amid Backlash

Human resource software company Lattice, valued at $3 billion in 2022 and founded by Jack Altman, brother to Sam Altman, has decided to abandon its initiative to integrate AI “workers” into its organizational structure following significant online backlash. The company initially announced that it had made history by giving AI entities employee records and including them in organizational charts, allowing human employees to see the roles of AI in their workplace.

Initial Announcement and Backlash

The announcement was intended to showcase Lattice’s effort to integrate AI responsibly, treating AI like human employees by training, onboarding, and assigning them managers. However, after just three days, the company reversed its decision due to the intense negative reaction.

“This innovation sparked a lot of conversation and questions that have no clear answers yet,” CEO Sarah Franklin said in a statement to Fortune. “We look forward to continuing to work with our customers on the responsible use of AI but will not further pursue digital workers in the product."

Response from the Community

Lattice’s initiative to treat AI as employees was part of a broader strategy to incorporate AI into the workplace responsibly. However, the reaction from Lattice’s community, particularly on LinkedIn, was overwhelmingly critical. Sawyer Middeleer, chief of staff at AI sales platform Aomni, commented, “Treating AI agents as employees disrespects the humanity of your real employees. Worse, it implies that you view humans simply as ‘resources’ to be optimized and measured against machines.”

Concerns About AI in the Workplace

The backlash against Lattice’s plan highlights the growing anxiety around AI’s role in the workplace. A report by Goldman Sachs in March 2023 suggested that AI could replace or degrade up to 300 million jobs in the U.S. and Europe. Similarly, venture capitalist Kai-Fu Lee predicted that 50% of human workers could be replaced by AI by 2027. A 2022 survey by consulting firm PWC found that one-third of employees feared their jobs would be replaced by technology.

Lattice’s announcement came just a year after the company laid off 15% of its staff, further fueling concerns about job security. The company’s attempt to responsibly integrate AI employees was seen as tone-deaf in light of these layoffs.

AI and the Future of Work

The tension surrounding AI in the workplace is evident, but tech leaders are not universally convinced that AI will lead to massive job losses. Ronnie Sheth, CEO of advisory firm Senen Group, told Fortune, “I talk to a lot of CEOs, and I’ve learned very quickly that they are not thinking of AI replacing us—I can say that with full authority.”

While some jobs, particularly those involving administrative and analytical tasks, may be at risk, responsibilities related to branding and management are not yet threatened. Sheth emphasized the importance of balancing the reskilling of the labor force with policies that ensure AI is used for human good and does not take away livelihoods.