In a world where HR tech is evolving faster than you can say "performance metrics," Lattice threw its hat into the AI ring in a big way. The idea? Treat AI bots like real employees, complete with official HR records.
Bold move? Sure. As someone who spends a lot of time wondering why companies in the work technology space rarely take big swings at ambitious ideas, I loved the audacity of the move. It was out of the box and sure to ruffle some feathers. Some people weren’t going to like it — and that's OK.
However it seems like Lattice wasn't ready for the ruffled feathers part. Instead of finding some wild fans, it found something very, very different.
Lattice Makes a Full 180
Last month, Lattice’s CEO Sarah Franklin announced what she called a historic move. "Today Lattice is making AI history," she proclaimed. The plan was to onboard AI workers just like humans.
"Digital workers will be securely onboarded, trained and assigned goals, performance metrics, appropriate systems access and even a manager. Just as any person would be," Franklin wrote. It was a full-court push to integrate AI into the human-centric world of HR.
And then the internet exploded.
This isn't usually the case for HR technology announcements. But in the sometimes sleepy world of work tech, the digital revolt was swift. Hebba Youssef, chief people officer at Workweek and author of the I Hate It Here newsletter, summed up the confusion with a single question: “Why??"
Youssef seemed to speak for many in the industry. What was Lattice doing and what was it trying to accomplish with this move? The motives were unclear.
Faced with a backlash that spread like wildfire, Lattice slowed down its AI dreams. Within three days it announced it was pulling the plug on the AI worker feature. “This innovation sparked a lot of conversation and questions that have no answers yet,” said the update on Franklin’s post. “We look forward to continuing to work with our customers on the responsible use of AI, but we will not further pursue digital workers in the product.”
Lattice stayed tight-lipped after the retraction, leaving everyone to wonder about the internal discussions that led to this rapid chain of events. One thing was clear, though: the company felt the heat and decided it wasn’t worth getting burned.
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Lattice Wasn’t the First to Put the AI in Employee
Of course, Lattice isn't the only player dabbling in the digital worker domain. Companies like Cognition AI and Qualified have been pushing their own AI-driven workers, such as Cognition's Devin software engineer and Qualified's Piper AI sales development representative.
But unlike Lattice, these companies managed to avoid a public relations disaster. In fact, while it may feel weird to call them AI employees, most organizations generally treat them as extensions of tech and people working together.
Those companies didn't rush to personify AI or integrate it into human-centric HR systems so aggressively. Lattice’s attempt backfired because it overstepped the current comfort zone of both the HR industry and the broader public.
The distinction is critical. While Devin and Piper were attempts at personification, neither company placed the solutions on the same level as a human worker. When Lattice suggested onboarding AI workers, providing performance feedback and assigning managers — all parts of the employee experience — it threw technology and humans into the same bucket. AI isn't human. While its results can — and should — still be tracked, measured and improved, it shouldn't be in what are fundamentally human-centric systems.
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A Cautionary Tale for Tech Providers
Lattice’s experience here is a stark reminder for any tech provider eager to blaze trails with AI. Here are three key lessons they can take away from this episode:
1. Understand Market Readiness
One of Lattice's biggest missteps was not gauging the market's readiness for AI workers integrated into formal HR systems. Just because a technology is available doesn't mean the market is ready to embrace it. As Jeff Goldblum’s character in Jurassic Park quipped, “Your scientists were so preoccupied with whether or not they could, they didn't stop to think if they should.”
Companies should conduct thorough market research and gather feedback from key stakeholders before rolling out groundbreaking features. This ensures there’s a genuine demand and that the introduction of such features won’t cause confusion or backlash.
2. Engage Stakeholders Early and Often
Lattice missed the mark by not involving its community in the development process. Engaging HR professionals, existing customers and industry experts early on could have provided invaluable insights and helped identify potential issues.
Bold ideas are fun for outside observers but can make existing customers and prospects worry. Regular feedback loops and pilot programs can act as reality checks, ensuring that innovations align with user needs and industry standards.
3. Communicate Clearly and Transparently
The way Lattice communicated its AI worker feature left many puzzled and concerned. Clear, transparent communication about the technology, how it will be used, and its benefits and limitations is crucial.
Even though I was a disinterested party, the communication was lacking a certain thud. Instead, focusing on the practical benefits and addressing potential concerns head-on should’ve been job number one. Clear communication builds trust and helps manage expectations, which is essential when introducing anything new.
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What’s Next for AI Employees?
Lattice’s venture into creating employee records for AI workers was a bold, albeit premature, step into the future of HR technology. The swift backlash and subsequent retraction highlight a critical lesson: innovation needs to be tempered with practical consideration and market readiness.
As we look to the future of digital workers, it’s clear that while the integration of AI holds promise, it must be approached with caution and a deep understanding of the ecosystem it aims to enhance. The path to innovation is not just about bold moves but smart, considerate steps forward. Kudos to Lattice for swinging big — and for helping us understand learn from the responses to its bold, interesting step forward.
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