CEO of Lattice: Many Companies Overstate Their AI Capabilities, No One Is 'Crushing It Right Now'

Sarah Franklin, the CEO of Lattice, a prominent HR software company, has voiced her skepticism about the widespread claims of AI maturity among many businesses. According to Franklin, the excitement surrounding AI's potential is outpacing its actual implementation, leading to a situation where many companies are still figuring out the basics. In an interview with Business Insider, Franklin stated that no company is currently "crushing it" with AI, despite some bold assertions to the contrary. This is primarily because generative AI, a technology capable of creating content and responding to queries, is still in its early stages. No one today, she emphasized, has a decade of experience in agentic AI, highlighting that everyone is essentially starting from the same point. Last year, Lattice faced backlash when it announced plans to integrate AI employees into its people management platform. The concept involved treating AI as if it were a human employee, including onboarding, training, and assigning goals and performance metrics. However, the company quickly backtracked on this idea, recognizing the potential ethical and practical issues involved. Despite the controversy, Franklin remains optimistic about the role AI can play in businesses, particularly in sales and human resources. One proposed application is to use AI as a sales development representative (SDR). These digital SDRs could engage with potential customers, providing information about new features and qualifying leads before passing them on to human sales teams. This approach, Franklin believes, could free human employees from mundane tasks, allowing them to focus on higher-value activities. For example, instead of spending all day cold calling, sales teams could concentrate on nurturing qualified leads. Franklin stresses that the key to successful AI integration lies in prioritizing people’s needs and empowering employees. She envisions a future where AI acts as a personalized assistant or coach for every worker, offering support in managing tasks, attending meetings, taking notes, and providing career development advice. These virtual assistants, she suggests, could democratize resources traditionally reserved for upper management, making every employee feel more supported and productive. Moreover, AI could foster a more open and supportive work environment. Employees might feel more comfortable asking questions to an AI assistant, reducing the fear of judgment that can sometimes hinder learning and growth. "From a leader's perspective, it's more about focusing on the people first, and then how AI is in service of their success," Franklin explained. By doing so, companies can build a culture where employees are more willing to embrace and leverage AI tools. However, Franklin warns against the overreliance on AI for efficiency gains. A primary risk is that businesses may become too dependent on bots, undermining the unique value and skills of human workers. This could lead to an environment where "robots talk to robots," resulting in a lack of meaningful customer interaction and potentially causing business failure. She pointed out that differentiation in the market often comes from the creativity and expertise of human employees, which AI cannot fully replace. Franklin sees recent comments from Anthropic CEO Dario Amodei and OpenAI CEO Sam Altman as urgent calls to action. Amodei warned in May that AI could eliminate half of all entry-level office jobs within five years, while Altman discussed the "Gentle Singularity," suggesting that AI systems are becoming smarter than humans in many areas. These predictions underscore the rapid pace of AI development and the need for individuals and organizations to adapt and prepare. Given the unprecedented speed of AI's rise, Franklin urges leaders to be transparent, accountable, and responsible in their approach to AI. "People are afraid, and we have to be courageous," she said, emphasizing that clear communication and ethical considerations are essential to navigating this transformative technology. In the broader context, Lattice positions itself as a company focused on enhancing human capital through technology. Founded in 2015 and based in San Francisco, Lattice provides performance management and employee engagement solutions to businesses. Franklin’s tenure as CEO, coupled with her previous role as chief marketing officer at Salesforce, brings a blend of HR and tech expertise to the table. Her views on AI in the workplace reflect a balanced approach, aiming to augment rather than replace human capabilities, and highlight the importance of ethical and responsible AI integration. Industry insiders generally agree with Franklin's cautiously optimistic stance. They recognize the immense potential of AI to enhance productivity and innovation but concur that the technology's deployment must be carefully managed to avoid negative impacts on workforce dynamics and business sustainability. Lattice's decision to reconsider its initial AI employee proposal demonstrates a commitment to responsible AI practices, setting a positive example for other tech companies in the HR space.