Li Peigen on AI in Business: Reframing Human-Machine Collaboration Over Headcount Reduction

Deep News
Sep 06

At the 2026 Lean Digital Innovation Conference held at the Tianjin National Convention and Exhibition Center from September 5th to 7th, Chinese Academy of Engineering academician Li Peigen delivered a keynote address emphasizing that lean manufacturing constitutes the first principle of the manufacturing sector—a foundational philosophy that must persist regardless of technological advancements in AI. He stressed that while lean principles have underpinned domestic manufacturing since their introduction in the 1980s, subsequent waves of informatization, digitalization, networking, and smart manufacturing have all served as enabling tools layered upon this core foundation.

Drawing a parallel with the Tao Te Ching's concept of "the Tao gives birth to one," Li argued that the five fundamental principles of lean will not become obsolete amid technological evolution, remaining the enduring value framework for manufacturing enterprises. Regarding product development, Li highlighted that generative AI design is breaking through traditional mechanical design limitations. Components such as engine blades and automobile wheel hubs are leveraging generative design to unlock substantial potential in weight reduction, performance optimization, and customized personalization—ultimately serving the lean imperative of creating value for customers.

Within the supply chain domain, Li proposed that AI's core contribution should center on generating profits through operational optimization rather than squeezing suppliers relentlessly. AI agents, functioning as "virtual labor," can absorb a significant volume of repetitive tasks, enhancing coordination efficiency in complex supply chain environments and fostering lean synergy across the upstream and downstream industry chain.

Turning to human resources and organizational management, Li issued a cautionary note: enterprises applying AI to drive organizational transformation must avoid simplistic workforce displacement. The essence of AI-enabled HR management lies not in determining how many employees AI can replace, but in redefining human-machine task allocation, restructuring task, capability, and process frameworks, and establishing task-capability-agent responsibility maps. Organizations should not fixate solely on headcount reduction and efficiency gains; instead, they must align with long-term strategy and orchestrate both human and AI agent capabilities as complementary resources.

Li observed that traditional hierarchical management models suffer from an "alignment tax" caused by information asymmetries, whereas AI intervention can substantially narrow information gaps between organizational levels. Future enterprise organizational units will transition from conventional static job positions toward a new paradigm of multidimensional collaboration among tasks, capabilities, and intelligent agents. Concurrently, he urged companies to recognize that while AI lowers process coordination costs, it also introduces new expenses related to data governance and model risk, necessitating proactive risk mitigation measures.

Concluding his remarks, Li underscored that "AI empowerment in manufacturing is pervasive, yet one must not forget that lean is the most fundamental principle." He affirmed that lean serves as the "one" of manufacturing, and even as AI achieves large-scale implementation, enterprises must anchor their digital transformation initiatives in lean fundamentals—pursuing consistency and continuity above all.

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