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How CEOs Are Talking About AI in the Workplace: 21 Key Terms Lawyers Should Know

Introduction:

Artificial intelligence (AI) is transforming not only how businesses operate but also the language we use to describe work. As The Wall Street Journal recently reported, Walmart’s CEO Doug McMillon has warned that AI will “literally change every job.”

This post breaks down 21 key AI vocabulary terms being used to describe the workplace, with clear explanations and examples to help lawyers, law students, and in-house counsel use them confidently in professional contexts.

Key Vocabulary and Phrases

1. Agent Builder

A brand-new job role where employees design and maintain AI tools, often specializing in creating conversational AI or “agents” for specific business purposes. Walmart recently introduced this position, showing how novel roles are emerging as AI spreads.

Example: “The retailer hired agent builders to create AI solutions for customer service.”

2. Human-in-the-Loop

An AI system design requiring human oversight or intervention to maintain quality, safety, and ethical standards. This model is critical in compliance, liability, and ethical discussions.

Example: “The company adopted a human-in-the-loop model for contract review automation to ensure accuracy.”

3. AI Agents

Chatbots or digital assistants built to interact with customers, employees, or suppliers. They are often designed for a specific purpose, such as handling customer service inquiries or streamlining procurement. Widely used in retail, finance, and law firms.

Example: “The firm deployed AI agents to handle supplier inquiries.”

4. Generative AI (GenAI)

GenAI is a type of artificial intelligence that can create new content such as text, images, or code. By contrast, AI is a broader term, covering all systems that perform tasks requiring human-like intelligence, including automation, prediction, and data analysis.

Example: “While AI helps automate warehouse operations, generative AI (GenAI) is being tested to draft contracts and summarize legal documents.”

5. Lighthouse Project

A high-profile, strategic pilot project used to highlight how AI can transform a specific function, such as research or the supply chain. These projects serve as a proof-of-concept to inspire broader adoption of new technology.

Example: “Syngenta launched a lighthouse project to test AI-driven research methods.”

6. Job Composition Uncertainty

Uncertainty about which jobs will grow, shrink, or vanish as AI spreads. This is a key discussion topic in workforce reports and board meetings.

Example: “Executives admitted there was job composition uncertainty as AI spread.”

7. Workforce Transformation

Major, proactive shifts in the structure and composition of jobs within an organization, often due to AI or automation. It is a strategic process aimed at preparing the workforce for the future.

Example: “The new AI system triggered a workforce transformation across all departments.”

8. Job Redeployment

Reassigning employees to new roles when their old positions are eliminated. This is a key component of a managed workforce transformation and helps reduce layoffs and legal exposure.

Example: “Redeployment helped reduce legal risks during restructuring.”

9. Reskilling / Retraining

Teaching workers new skills to transition into new roles. This is a common practice in corporate compliance and union agreements.

Example: “The employer committed to reskilling its workforce as AI altered job requirements.”

10. Upskilling

Improving existing skills to remain competitive and relevant in an evolving workplace. This is important in continuing legal education and HR initiatives.

Example: “Lawyers must upskill in technology law to advise AI-driven clients.”

11. Exiting Employees

Letting go of workers who cannot be reskilled or redeployed in the AI era. This reflects a strategic workforce decision often mentioned in corporate announcements and HR policies.

Example: “The consulting firm announced it was exiting employees who could not be retrained for AI-driven roles.”

12. Job Elimination

The permanent removal of roles when AI or automation replaces tasks. This is a central concept in layoffs and redundancy policies.

Example: “The company announced job eliminations in its logistics division after introducing AI tools.”

13. Displacement

The loss of employment due to automation or restructuring. It’s a frequent topic in labor law and government policy.

Example: “AI has caused significant worker displacement in logistics.”

14. Head Count

The total number of employees in a company. This is a shorthand term used in HR, contracts, and annual reports.

Example: “Despite automation, Walmart’s head count is expected to remain flat.”

15. Role Composition

The mix of job categories within an organization. This is a core metric in workforce planning and disclosure.

Example: “The company’s role composition shifted as more technical roles emerged.”

16. Automation

Using machines or software to perform tasks previously done by humans. This is a central concept in employment and contract law.

Example: “Warehouse automation has reduced the need for manual labor.”

17. Back-of-Store Tasks

Operational duties performed away from customer view, such as inventory management and sorting, which are often the first to be automated.

Example: “AI now performs many back-of-store tasks like inventory tracking.”

18. Humanoid Robots

Robots designed to resemble humans. While they are a topic of corporate strategy, they are rarely used in customer-facing roles.

Example: “The CEO stressed that humanoid robots won’t replace workers in front-line positions.”

19. Soft Skills

Interpersonal and communication abilities. These are increasingly valued as technical tasks are automated because they are considered difficult to automate.

Example: “Employers now emphasize soft skills like communication and adaptability.”

20. Resilience

The ability to adapt and recover from change. This is seen as a key predictor of long-term workplace success in the face of technological disruption.

Example: “Resilience proved essential during the company’s transition to AI tools.”

21. Job Security

The expectation of stable employment. It is an increasingly uncertain concept in the AI-driven workplace.

Example: “AI adoption has raised concerns about long-term job security.”

Conclusion

AI is transforming not only the workplace but also the vocabulary of work. For lawyers, law students, and in-house counsel, understanding terms like agent builder, human-in-the-loop, and displacement is key to advising clients, drafting contracts, and navigating labor law in the AI era.

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Further Reading

For more on how AI is already reshaping jobs at the world’s largest private employer, see The Wall Street Journal’s coverage of Walmart CEO Doug McMillon’s remarks.

Disclaimer

The content provided herein is only for discussion purposes and may contain errors. The reader is responsible to confirm the accuracy of the information provided. The content does not constitute legal or professional advice. We disclaim any liability for any loss or damage incurred directly or indirectly from the use of this information.

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