Q 737. Polanyi’s Paradox suggests that humans possess tacit knowledge that is difficult for AI to replicate. How can this understanding be leveraged? Which are the areas where human skills remain indispensable, and what strategies can individuals and organizations adopt to thrive alongside AI rather than fear job displacement?

 

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Polanyi’s Paradox emphasizes the distinction between tacit knowledge (the know-how that is difficult to express or codify) and explicit knowledge (knowledge that can be easily articulated). Leveraging this understanding can significantly enhance collaboration between humans and AI, and highlight the areas where human skills remain crucial. Here are some insights and strategies:
 

Tacit Knowledge which is difficult to replicate using AI

1. Training and mentorship programs where people work together and learn from experienced colleagues, helps in sharing crucial knowledge and understanding various process nuances through their trainers and mentors experiences and storytelling. AI can be useful in providing relevant documents for this process but it cannot achieve face-to-face interactive elements which help in creating a well-paced learning experience through creating a human connection.
2. When we tackle problems together using interactive methods like brainstorming, we can come up with innovative and diverse solutions. AI is unable to replicate the same.
3. Humans possess a deep intelligence and a keen awareness of the emotional nuances in our interactions. We need to understand social cues, recognize emotions, and show empathy to navigate complex dynamics effectively. This is something that is very difficult for AI to understand.
4. Better products and unique user-experiences can be created by using the feedback we receive from our users. This helps us in curating what is needed by our users and implement the insights we receive from them to add value to our products and services.

Areas where human skills cannot be replicated by AI
 

• Creative professions - Sports, art, and various other skills and passion based professions are built on human passion and creativity. They are based on aspect of exceptional, individual traits that help in distinguishing one talented individual from another are distinct to each individual.
• Healthcare - In healthcare, doctors, nurses and other individuals are able to provide a level of service that is built on empathy, ethical decision-making, and nuanced patient care.
• Teaching/Training/Coaching - Besides providing guided learning, teachers help in inspiring students and adapt the teaching style to how a student learns, something AI cannot fully replicate.
• Leadership - Effective leadership requires leaders to have a high EQ, which helps them in having an in-depth understanding of how teams function within and with other teams, what keeps their employees motivated to work for the company, and create a work culture that is focused on growth, learning and ability to understand what success looks like for each individual and team.

What should be done to thrive with AI

1. Learning skills to work with AI - Building upon existing skills and continuously learning so that we are able to adapt to new technological advancements will help individuals to work in sync with AI to drive better decision making and become more adept at problem solving. The focus should be on learning skills that help individuals in working along with AI.
2. Treating AI as a friend not a foe: AI tools can be extremely helpful in enhancing productivity, efficiency and decision. Therefore, instead of treating AI as an enemy, it is crucial to learn how we can utilize it to assist in making our daily tasks more productive.
3. Building our creativity and EQ: Working on building emotional intelligence and becoming more creative, which are some of the skills that are unique to humans, will help us become more relevant in a workplace.
4. Learning through building a community: Building relationships and creating a better network within industries, helps us in leveraging knowledge sharing and learning through others experiences. This in turn helps in creating a workforce which is more resilient and able to adapt to changes at a faster pace.
5. Skilling up instead of replacing: Instead of merely automating tasks and utilising AI for majority of the work, companies and governments should focus on providing people the relevant skills and assist them in upskilling in order for them to work in sync with the new technological advancements.

By recognizing the value of tacit knowledge and focusing on areas where human skills excel, individuals and organizations can coexist with AI, leveraging its strengths while enhancing their own capabilities.

Polanyi’s Paradox states the challenge that AI would face in replicating tacit knowledge which means the knowledge that is deeply rooted in human intuition, experience, and context, which we often cannot fully articulate. Understanding this paradox provides a framework for identifying areas where human skills remain indispensable and for shaping strategies to integrate human and AI capabilities effectively.

Below are the areas where human skills would remain indispensable -

1.      Creativity and Innovation – While AI can generate ideas and help in innovation a lot of tasks like artistic expression, and lateral thinking, are difficult for AI to emulate. For Example: Designing new products, writing compelling stories, or creating innovative marketing strategies.

2. Emotional Intelligence (EQ) - AI lacks the ability to genuinely empathize with individuals or understand human emotions. It can only provide language or the material however the main element of the human touch would be missing. For Example: Counseling, conflict resolution, and leadership roles requiring interpersonal skills.
3. Complex Problem-Solving - Humans can approach problems with flexibility and make sense of ambiguous or incomplete data which is difficult with AI. For Example: Strategic decision-making, scientific discovery, or navigating ethical dilemmas.
4. Ethics and Judgment – Human intervention will be required for decisions involving values, fairness, and societal norms that impact human oversight and moral reasoning. For Example: Legal judgments, policy-making, and medical ethics.
5. Tacit Knowledge-Intensive Roles - Tasks involving implicit understanding, situational awareness, or physical dexterity remain challenging for AI. For Example: Skilled trades, caregiving, or cultural context-based work.

 

Different strategies that individuals and organizations can adopt to thrive alongside AI rather than fear job displacement would be

1.      To invest in continuous learning and upskilling themselves.

2.      Organizations can offer training programs to help employees adapt to technological shifts.

3.      We can leverage AI to do data analysis while humans can provide strategic insights and do the decision-making.

4.      Organizations should encourage employees to build expertise in areas that AI struggles to replicate.

5.      Leaders and organizations should promote a culture where employees view AI as a tool to enhance productivity and explore new opportunities rather than treat it as a threat.

6.      Organizations should prioritize transparency and ethical considerations in deploying AI to build trust and ensure equitable outcomes.

Let us understand first few things. 

 

Michael Polanyi, the philosopher states that human beings tend to depend on their tacit knowledge. Polanyi's paradox (named after him) says that "We can know more than we can tell".  

 

A good Wiki's definition of Tacit(implicit) knowledge is that it is a knowledge which is difficult to extract or articulate and is more difficult to express/convey to others through writing or conveying orally, as it talks about a person's skills, thoughts/ideas, wisdom/experiences which he/she possesses but that may not be explicitly portrayed/documented and can be difficult to express. People with tacit knowledge may not be aware of the fact that they possess considerable knowledge and may not be aware as how much that is useful to others

 

How this tacit knowledge can be leveraged?
This conscious understanding (of the tacit knowledge) can help organisations and human beings to have a mindset change towards the usage of AI and seek for areas(focus areas) where human interactions can complement with usage of AI to make it more meaningful and beneficial to all the stakeholders. The idea is to leverage the power of AI and human strength for a better outcome in relevant areas.

 

Areas where human skills remain indispensable
1. Indigenous, Intuitive, Innovative 

 

Eg: While playing Carrom board [Black and White Game], i try to focus on putting my own coin in the pocket . When i used to play with my relatives (who are previous generational players) , few of them used to put their coins in the pockets and also at the same time, try to base my coin [which is to put my (coloured) coins towards the baseline on my side (especially which will be difficult for me -if there is "Thumbing rule")]. This skill is specific and can be indigenous, intuitive for them. 

 

Just like as you have Super Computers like DeepBlue for Chess, we have Carrom Robots, Carrom Simulators for playing carrom normally. While probably the carrom robots can steady upon the patterns/trends seen in the earlier games, picking this tacit knowledge may not be possible, for the AI. 

[Note: You may need to know bit of Carrom board game to understand this context]

 

2. Empathy & Emotional Intelligence:
 Work areas that require human emotions to be tapped in - such as leadership roles, personal coaching, agile coaching, Enterprise Agile coach , mentoring and so on
   
Eg: While coaching/mentoring a person (coachee/mentee) it is not easy to capture the body-language gestures and a corresponding meaning that it can brought about to the person.. AI cannot effectively create a similar impact on Coaching  
   
3. Complex scenarios:
When a scenario involves multi-disciplined skills or when there is lot of chaos or uncertainty. Also where there is a scarcity in terms of clear datasets  

 

Eg: Analysis of MRI scans by Experts..   . This may involve multiple skills . The Experts provide their comments/analysis based on years of experience.. Its difficult to have that captured through AI

4. Areas that requires finer skills: A combination of skills like Intuitive, Contextual adaptability... 

Eg: Self-driving cars in Themed Safari Trips, in National highways.  Human beings might know the subtle changes that they may observe while doing the driving instead of an AI operated car. 

 

5. When Data gathering is too cumbersome or not enough:  Cumbersome could mean that source of the data pulled from multiple sources and this requires threadbare analysis of each and every source and insight has to be achieved.  

 

Strategies can individuals and organizations adopt to thrive alongside AI 
Individuals: Some key factors are
1. Focus on Skills: Focus on some of the skills like innovative, creative skills
2. EI and EQ: Understand about Emotional Intelligence and Emotional Quotient. 
3. Understand AI: Understand more about usage of AI and see how it can be leveraged
4. Continuous Learning: Keep your learning of AI and related tools as continuous and stay updated, to reap 

   the benefits  

 

Organisation 
1. AI as support Agent: Use AI as a supporting agent and not a deciding authority for any business decisions
2. Identify areas of AI support: Have a clear strategy where(in which area) AI and human beings can seamlessly collaborate  
3. Provide AI Training: Staffs can be upskilled in specifics of AI. 

Conclusion:

Polanyi’s Paradox highlights the shortcomings that AI can have and also how human interaction with AI as a partner, can provide superior outcomes in terms of productivity, better experiences, opportunities.   

  

Humans know more than they can explain. This justifies or explains Polanyi’s Paradox.

 

In Today's world even though we are surrounded by the AI gadgets, a lot of tasks professions and activities are still out of scope for LLM. As long as we utilize them as enabler however their actual usage as a replacement of the human effort or brain is still far from reality.  For a machine to accomplish a task it needs to be programmed first with the sequence of steps required to perform that task, after then the machine to precisely simulate these steps. However, if any of the steps is influenced or requires a human response then it won't be able to repeat all those steps. This will cause the machine to fail to replace humans. For example,

 

• A Doctor who is treating a mental health patient his / her actions , responses are generated by the actions of the patients in real time and is heavily influenced by expressions, emotions of empathy etc. This can never be replaced by AI as a person would want to talk to a human being rather than an AI generated machine or a code.
• A sports person performance. Her / his preparation can be influenced by AI but the performance.
• Creative Professions like Story writing, art and craft etc. where at any given time one would prefer an original art than machine generated.
• Leadership Skills / Jobs – The essential skills of motivation, empathy, , compassion which are a package in leadership positions cannot be imitated by a machine. We can program several situations and can also introduce Machine learning algorithms for next time however in current situation an employee would rather want to discuss / get influenced by a human instead of a machine.

 

Overall, AI should be a good enabler in quite a few areas however its efficacy in generating similar and effective responses like humans is still questionable.

Polanyi’s Paradox: Why human skills still matter?
Have you ever tried to explain something you just know how to do but can’t put into words? That’s Polanyi’s Paradox in action: “We know more than we can tell.” It’s about the unspoken skills, instincts, and experiences we carry. While AI relies on explicit data and well-defined rules, it doesn’t come close to capturing this human essence. To get the most out of what we bring to the table, we need to lean into these strengths and work with AI— not against it.
I. What makes us uniquely human? • Creativity and Innovation
Humans have this amazing ability to think outside the box. We come up with ideas no one’s thought of before, connect dots that seem unrelated, and imagine things that don’t yet exist. Sure, AI can crunch numbers and identify patterns, but it’s not going to write a bestselling novel, create breathtaking art, or invent the next big thing. That’s all us.
• Emotional Intelligence
mpathy. Understanding. Connection. These are the things that make relationships meaningful, whether in life or at work. Humans pick up on subtle cues—like the tone of someone’s voice or what’s left unsaid—and adjust accordingly. AI might analyze a tone or detect sentiment, but it can’t truly feel or build trust like we do.
• Making Ethical choices
When faced with a tough decision, it’s not just about what’s efficient—it’s about doing what’s right. Humans can weigh values, consider context, and navigate those tricky gray areas. In fields like healthcare or law, where the stakes are high, that kind of judgment is irreplaceable. AI just doesn’t have the capacity to “care” in the same way.
• Rolling with the Punches
Life is messy, unpredictable, and full of surprises. Humans thrive in these moments, whether it’s improvising on the spot, solving a sudden problem, or pivoting when plans go sideways. AI? It’s great at following the rules it knows, but throw it a curveball, and it’s likely to freeze.
• Leading with Vision
Great leaders don’t just manage—they inspire. They rally people together, build trust, and guide others through uncertain times. Leadership takes emotional intelligence, intuition, and a clear sense of purpose—all things that are distinctly human.
II. How to thrive in an AI-powered world AI doesn’t have to be something to fear. Think of it as a teammate that’s here to help us shine. By combining our strengths with what AI can do, we can create a future where both thrive.
1. Keep Learning and Growing
Double down on what makes us human, like creativity, empathy, and big-picture thinking. Learn just enough about AI to work with it confidently and get the most out of it. 2. Shift how you see AI Don’t think of AI as a competitor; see it as a tool that makes your job easier. Let it take care of the boring stuff so you can focus on the exciting, impactful work.
3. Team up with AI Use AI to handle things like analyzing data or managing repetitive tasks. Then, you can step in to interpret results, make decisions, and spark innovation. Build teams that mix tech-savvy people with creative thinkers to really bring out the best in both.
4. Lean into what you’re best at? Look for opportunities where human skills—like connecting with people, leading with empathy, or thinking strategically—take center stage. That’s where we’ll always stand out.
5. Help shape AI’s future Be part of the conversation about how AI is designed and used. Push for systems that support and elevate human contributions instead of overshadowing them. 6. Stay curious Keep learning and stay open to new technologies. The more you understand and adapt, the better prepared you’ll be to thrive in this ever-changing world

 

 

Polanyi’s Paradox highlights that humans possess tacit knowledge—intuitive, experiential skills that AI struggles to replicate. By understanding this, individuals and organizations can position themselves to complement AI rather than fear job displacement.

 

Key Areas Where Human Skills Remain Indispensable

1. Creativity and Innovation: Original thinking in design, art, and problem-solving.

2. Emotional Intelligence: Relationship-building and understanding emotions.

3. Contextual Understanding: Interpreting nuanced or subjective situations.

4. Ethical Decision-Making: Handling moral dilemmas and societal impacts.

5. Physical Dexterity: Tasks requiring motor skills and adaptability.

 

Strategies for Individuals

• Develop soft skills like leadership and communication.

• Pursue lifelong learning to stay updated and adapt to hybrid roles.

• Cultivate creativity and entrepreneurial thinking.

 

Strategies for Organizations

• Redefine job roles to emphasize human strengths.

• Invest in training for AI literacy and hybrid skills.

• Foster innovation by integrating human-AI collaboration.

• Adopt ethical AI to ensure transparency and trust.

 

By leveraging human intuition, creativity, and empathy, individuals and organizations can work with AI to amplify human potential, creating opportunities for innovation and growth rather than fear of obsolescence.

Polanyi's paradox emphasizes the need for tacit knowledge, which is the human experience and intuitive side. There are numerous ways that this understanding can be leveraged.

• Emphasize human skills, including creativity, critical thinking, and sophisticated problem-solving.
• Combine artificial intelligence capabilities with human tacit knowledge to generate a hybrid intelligence system.
• Transfer tacit knowledge among humans through coaching and mentoring.
• Use AI to support human decision-making along with data-driven insights.

Below are the areas where human skills will remain indispensable:

• Solving the complex problem
• Creativity and Innovation
• Emotional Intelligence and Compassion
• Decision-making that involves moral ambiguity

Below are some of the strategies that individuals and organizations can adapt:

• Equip the employees by upskilling and re-skilling, focusing on human skills and emerging AI technologies.
• Continuous learning enables employees to adapt to evolving job demands based on advanced technologies.
• Create diverse and inclusive working environments that leverage the unique strengths and perspectives of team members.
• Communicate across the organization that AI augmentation will enhance job satisfaction, productivity, and quality rather than replace employees or cause job displacement.

 

Individuals and organizations may prosper alongside AI by recognizing the importance of human-centric skills and tacit knowledge, utilizing both human and machine strengths to promote success, innovation, and growth.

 

Polanyi's Paradox is named after the Hungarian-British philosopher and polymath Michael Polanyi. It refers the concept that “We know more than we can tell”. It talks about the tacit knowledge. Tacit knowledge implies the skills, insights, and intuitions. The knowledge that is very hard to express or articulate.

 

For example, I can rotate my hands independently clockwise and counterclockwise simultaneously. It is very easy for me to do this. People in general find it very difficult or impossible to replicate it. But I can’t explain how can I able to do this very easily. So, I know I can do this but can’t explain how I rotate my hands independently clockwise and counterclockwise simultaneously.

 

Leveraging Polanyi’s Paradox

 

Bridging the gap between Human Intelligence and Artificial Intelligence

The Human Intelligence developed through experiences, social interactions, day to day problem solving and decision making which is very challenging for the AI to replicate. Through regular interaction of humans with AI technologies can further improve the AI model.

For example: with regular human interaction with ChatGPT improves the knowledge base of the AI model because across the world people are asking solution for their day-to-day problems

 

Humans are intuitive, creative and empathetic we can leverage these skills of human in developing robots. Such as developing Humanoids. Humanoids are working as waiter the in Chinese restaurants to fulfil the peak demands with human understanding. Mules are included in Indian army.

 

Areas where human skills remain indispensable

 

Creative Arts:  Fine art, Music, and writing require creativity, emotional expression, and cultural nuances where humans excel. Here AI can assist, but the human touch remains irreplaceable.

 

Healthcare: 

• Patient Care: Empathy, bedside manners, and the ability to make nuanced decisions in complex situations are crucial in healthcare.
• Medical Research: While AI can process data, the creative thinking required for breakthrough discoveries often comes from human intuition.

Education:

• Teaching: Personal interaction, mentoring, and the ability to adapt teaching methods to individual needs are strengths of human educators.
• Counselling: Providing emotional support and understanding is a human forte.

Leadership and Management:

• Strategic Decision-Making: Complex, high-level decisions that involve ethics, empathy, and long-term planning are best handled by humans.
• Team Building: Motivating and leading people requires emotional intelligence and social skills.

 

Customer Service:

•  Problem-Solving: Understanding and resolving unique customer issues often requires human ingenuity.
•  Building Relationships: Establishing trust and rapport with customers is something AI struggles to replicate.

 

Skilled Trades:

• Craftsmanship: Precision, creativity, and the ability to work with one's hands are key in many trades.
• Maintenance and Repair: Diagnosing and fixing problems in unpredictable environments often requires human judgment.

 

Strategies for Individuals to Thrive Alongside AI

 

Embrace Lifelong Learning:

• Focus on acquiring skills that are difficult to automate, such as critical thinking, adaptability, and creative problem-solving.
• Example: Learn how to work with AI tools rather than compete against them.

Cultivate Emotional Intelligence:

• Develop skills like empathy, negotiation, and interpersonal communication that are highly valued in human-centric roles.

Specialize in Tacit Knowledge Areas:

• Deepen expertise in areas where intuition and hands-on skills are critical.

Be Technologically Literate:

• Understand how AI works to use it effectively in specific field and identify where it falls short.

 

Strategies for Organizations to Thrive Alongside AI

 

Invest in Human-AI Collaboration:

• Redesign workflows to combine AI's efficiency with human creativity and judgment.
• Example: AI generates insights, and teams focus on strategic implementation.

Upskill Workforce:

• Provide training to help employees adapt to AI-enabled roles, emphasizing skills AI cannot replicate.

Prioritize Human-Centric Design:

• Develop AI systems that augment rather than replace human capabilities, making them intuitive and accessible.

Create Ethical Frameworks:

• Build a culture of ethical AI use, ensuring decisions and actions align with societal values and human well-being.

Foster Creativity and Innovation:

• Encourage a culture that values out-of-the-box thinking and experimentation, leveraging human ingenuity.

Conclusion

The understanding of Polanyi's Paradox can guide individuals and organizations to focus on what makes humans uniquely valuable. By blending the strengths of AI with human capabilities, we can create a future where humans thrive alongside AI, leveraging its power while safeguarding roles that depend on human intuition, creativity, and empathy.

R Rajesh has provided the best answer to the question as he has quoted some relevant examples.

 

Answers from Dieylani and Mudita are also a must read.