AI to Cut Global Worker Numbers: Adecco Survey
Artificial intelligence (AI) will lead to a reduced global workforce in the next five years, Adecco Group revealed in a recent survey published by the global staffing provider last Friday.
The survey themed “Leading Through the Great Disruption” was based on responses from senior executives at 2,000 large companies across nine countries and highlights both the opportunities and challenges AI presents in the workplace of the future.
The survey finds that 41% of senior executives anticipate a reduction in their workforce due to the integration of AI technology. The rise of generative AI, capable of producing text, photos, and videos in response to open-ended prompts, has sparked debates about its potential to streamline repetitive tasks while raising concerns about job security.
Major tech companies like Google and Microsoft have recently undertaken layoffs as they pivot towards AI-driven systems, and there could be more layoffs in the coming months and years. Adecco’s survey adds to the discourse initiated by the 2023 World Economic Forum study, which suggested that more organizations that intend to adopt AI believe it will lead to job growth rather than job loss.
Despite recognizing AI as a game-changer, the majority of senior executives surveyed say they’re yet to make sufficient progress in adopting AI effectively. 57% of these companies lack confidence in their leadership team’s AI skills and knowledge, while 59% have already taken action to strengthen leadership development.
Adecco CEO Denis Machuel emphasized the need for proactive measures to mitigate the impact of AI, urging companies to prioritize staff training and development over external recruitment.
The Adecco Group’s press release also highlighted that while 66% of businesses plan to hire AI-skilled talent externally, only 34% intend to invest in developing their existing workforce. Additionally, only 46% of companies plan to redeploy employees displaced by AI, indicating a significant gap in strategies to address workforce displacement.
Machuel stressed the importance of reskilling and upskilling initiatives to maximize the benefits of AI technology while minimizing disruption in the workplace. He cautioned against overreliance on external hiring as a solution to workforce challenges, advocating for a holistic approach that prioritizes employee empowerment and development.
The Adecco Group told Reuters that AI offers “massive opportunity” in its work with customers. “We already engaged in training and up-skilling people on behalf of our clients,” Machuel said. “We’ve sold a lot of consulting projects and the ramp-up that we see on that is quite interesting.”
Adecco polled responses from businesses in the US, Britain, France, Germany, Japan, Spain, Canada, Australia, and Singapore across the defense, pharmaceuticals, healthcare, industry, and logistics sectors.
