AI is Reshaping Work: What Montana Businesses Need to Know

THE NATURE OF WORK has always evolved with technological advancement. From the steam engine to electricity to computers, each industrial revolution has fundamentally changed how we work. Today, nearly every job involves using computers and software — from ranchers using herd management applications to foresters leveraging GPS systems for timber harvesting. 

The digital revolution that began in the 1970s transformed virtually every workplace. Workers who once kept paper records now manage databases. Mechanics who relied purely on experience now use diagnostic software. Even traditional industries like agriculture have embraced technology, with tractors guided by GPS and irrigation systems controlled by smartphones. 

Now artificial intelligence is driving another profound shift in how work gets done. But unlike previous technological revolutions that primarily automated physical tasks, AI is capable of enhancing cognitive work — helping workers make better decisions, be more productive, and focus on higher-value activities 


A farmer in the Netherlands monitors GPS while planting potatoes. Photo from Adobe Stock

Artificial intelligence supports some high-throughput lab testing. Courtesy of the U.S. Department of Energy.

Early adoption across industries 

The impact of AI is already visible across industries relevant to Montana’s economy. In forestry, companies are using AI-powered systems to analyze massive amounts of environmental data to optimize resource management and improve sustainability. In agriculture, autonomous tractors equipped with AI can now handle precise planting and harvesting while collecting data to improve future yields. 

The construction industry, which plays a vital role in Montana’s economy, is experiencing significant changes through AI adoption. Construction companies are using AI to improve everything from project planning to safety monitoring. For example, AI-powered cameras and sensors can monitor construction sites, tracking vehicles and personnel onsite to automatically detect potential hazards and verify the use of personal protective equipment, helping safety managers enforce compliance with safety protocols. 

Even traditional office work is being transformed. At 7-Eleven, AI has helped reduce hiring time from 10 days to just three days by automating candidate communications and interview scheduling. The company reports this has prevented them from losing qualified candidates who might otherwise take jobs with competitors — a crucial advantage in today’s tight labor market. 

Small businesses are finding creative ways to leverage AI as well. A recent U.S. Chamber of Commerce survey found that 65% of small business owners expect AI to change future job roles, while 64% expect AI proficiency to be required in future job listings. Many are already using AI to handle time-consuming administrative tasks like scheduling, document processing, and customer service, allowing employees to focus on more valuable work. 

Transforming rural tourism 

Rural tourism represents a significant economic opportunity for Montana communities, and AI is creating new ways to enhance visitor experiences while improving operational efficiency (for more on this topic, see pages 24-29). According to research from IEEE, an organization dedicated to advancing technology, AI is helping rural tourism operators optimize resource management, personalize visitor experiences, and improve sustainability. 

“AI can help analyze visitor data to determine tourism trends, predict peak seasons, and optimize pricing,” says Dr. Mohamed Saeed Darweesh, senior IEEE member. “For example, AI-powered sensors can monitor environmental conditions and visitor flows, helping tourism operators better manage their resources while protecting natural attractions.” 

Small lodges and tourism businesses are using AI to enhance customer service through 24/7 chatbots that can answer common questions about accommodations, activities, and local attractions. This allows staff to focus on providing personal attention where it matters most — during face-to-face interactions with guests. 

AI is also helping rural tourism operators better market their destinations. By analyzing social media data and online reviews, AI can help identify what attracts visitors to an area and what experiences they value most. This information can be used to create more targeted marketing campaigns and develop new offerings that appeal to specific visitor segments. 

Vermont’s electric utilities are even using AI to manage the growing demand from electric vehicle-driving tourists. Vermont Electric Co-op has implemented AI systems to track and manage EV charging patterns, ensuring their grid can handle increased demand while keeping costs reasonable for both residents and visitors. 

Skills in the AI era

One of the most significant impacts of AI is how it’s changing the skills workers need. According to Indeed’s comprehensive analysis of over 2,800 work skills, AI is creating new requirements across virtually every occupation. While AI won’t fully replace human workers, those who know how to effectively use AI tools will have significant advantages over those who don’t.

This shift is evident in how companies evaluate candidates. Loreal Lynch, chief marketing officer at Jasper AI, a leading AI marketing platform, notes that while traditional skills like writing mechanics were once crucial hiring criteria, they’re now looking more for critical thinking and the ability to effectively direct AI tools. “It’s more about the critical thinking and the context that a human can bring in than it is about the writing,” Lynch explains.

For Montana employers, particularly small businesses, this presents both opportunities and challenges. The good news is that AI can help identify and develop needed skills within existing workforces. Johnson & Johnson, for example, used AI to analyze employee data and identify skills gaps, leading to a 20% increase in professional development participation. While smaller organizations may not have J&J’s resources, similar principles can be applied at any scale.

Better skills management Through AI

One promising development is how AI can help employers better understand and manage their workforce’s skills. AI-powered systems can:

  • Create detailed skills inventories byanalyzing job descriptions, resumes, and work products
  • Identify gaps between current capabilities and future needs
  • Suggest personalized learning paths for employees
  • Match employees with internal opportunities based on their skills
  • Track skills development over time

This capability is particularly valuable for small businesses, where every hire and role transition is crucial. By better understanding their workforce’s capabilities, employers can make more informed decisions about hiring, training, and development.

Risks and challenges

While AI offers significant benefits, there are important risks to consider. The Society for Human Resource Management found that 19% of organizations using AI in HR activities discovered instances where AI tools inadvertently excluded qualified candidates. This highlights the importance of maintaining human oversight of AI systems.

Data privacy is another crucial concern. AI systems often require access to substantial amounts of employee and business data, raising questions about security and compliance with privacy regulations. Small businesses need to be particularly careful about how they handle sensitive information when implementing AI tools.

There’s also the challenge of employee acceptance. Workers may feel uncomfortable with AI monitoring their work or worry about job security. Research shows that employees are more accepting of AI tools when organizations are transparent about their purpose and implementation.

Preparing for the future

For Montana businesses looking to navigate this transition, several key principles emerge:

  • Start small: Focus on specific processes where AI can add immediate value rather than attempting wholesale transformation.
  • Invest in training: Ensure employees understand both how to use AI tools and why they’re being implemented.
  • Maintain human oversight: While AI can enhance decision-making, crucial choices should still involve human judgment.
  • Be transparent: Clear communication about how and why AI is being used helps build employee trust and acceptance.
  • Focus on augmentation, not replacement: Frame AI as a tool to help employees work better rather than a replacement for human workers.

The impact of AI on work will likely be as significant as the introduction of computers. But as with previous technological revolutions, success will depend not just on the technology itself, but on how effectively organizations and workers adapt to use it. For Montana businesses, the key is to approach AI adoption thoughtfully and strategically, focusing on how it can enhance rather than replace human capabilities. 

Paul Gladen is associate vice president for Research and Economic Development and director of Accelerate Montana at the University of Montana.

AI assisted with the development of this article.

COMMON AI STRATEGIES FOR BUSINESS 

Businesses across industries are finding practical ways to incorporate AI into their daily operations. Here are some of the most common and effective applications:

Marketing and customer engagement: Marketing teams are using AI to analyze customer data and predict trends, helping create more targeted campaigns. For example, some businesses report up to 21.5% higher conversion rates on their websites using AI-powered tools. AI can also help create personalized content for different customer segments and optimize social media strategies. Small businesses are particularly benefiting from AI’s ability to suggest optimal posting times and content types for social media engagement.

Customer service: AI-powered chatbots and virtual assistants are helping businesses provide 24/7 customer support without the need for round-the-clock staffing. These systems can handle routine inquiries, freeing up human staff to deal with more complex issues. Some companies report up to 11.5% faster case resolution times when using AI to assist their customer service representatives.

Financial management and operations: Business owners are using AI to streamline financial operations. For example, AI can help with invoice processing, expense tracking, and cash flow forecasting. Some companies report reducing the time spent on cash collections by 60% using AI tools. AI can also analyze procurement data to identify cost-saving opportunities and optimize supply chain management.

Administrative tasks and documentation: AI is proving particularly valuable for handling routine administrative tasks. CEOs report using AI to help draft investor updates, prepare performance reviews, and analyze contracts. One company reported that AI could help reduce legal review costs by up to 90% by doing initial contract analysis.

Project management: AI tools are helping businesses better manage projects and resources. These systems can help predict project timelines, identify potential bottlenecks, and suggest optimal resource allocation. Some organizations report reducing project planning time by 30-40% using AI-assisted tools.

Recruitment and hiring: Beyond just screening resumes, AI is helping businesses write more effective job descriptions, conduct initial candidate assessments, and even help with interview scheduling. 

Training and skills development: Companies are using AI to create personalized learning paths for employees and track skills development. AI can analyze an employee’s current skills and role requirements to suggest relevant training opportunities. Some organizations report up to 42% greater accuracy in addressing employee learning needs through AI-powered systems.

Data analysis and decision support: AI is helping businesses make sense of their data and make better decisions. From analyzing market trends to predicting customer behavior, AI tools can process vast amounts of information and provide actionable insights. This is particularly valuable for small businesses that may not have dedicated data analysis teams.

Document management and analysis: AI tools are helping businesses manage and analyze documents more efficiently. From summarizing long reports to extracting key information from contracts, AI can save significant time in document processing. Some businesses report reducing document review time by up to 40% using AI tools.

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