As revealed in a recent PwC survey, approximately 25% of CEOs worldwide plan layoffs of a minimum of 5% of their workforce due to generative artificial intelligence (AI). The survey, released on January 15, gathered responses from over 4,700 CEOs across 105 countries, and nearly one-third mentioned the integration of generative AI in their operations.
Notably, PwC’s report suggests that some organisations implementing staff cuts for efficiency might be balancing them out by hiring in other areas. According to PwC’s report, “Although 14% of technology CEOs anticipate reducing headcount in the next year due to generative AI, 56% also anticipate hiring in 2024.”
The results show that industries such as media, entertainment, banking, capital markets, and insurance are more inclined to implement staff reductions due to generative AI. At the same time, sectors like engineering, construction, technology, metals, and mining seem less susceptible to AI-related layoffs.
Approximately 70% of CEOs anticipate that AI will transform their business models within three years, necessitating their employees to acquire new skills during that timeframe.
The potential impact of AI across industries
The likelihood of staff reductions due to generative AI is higher in sectors like media, entertainment, banking, capital markets, and insurance. At the same time, industries such as engineering, construction, technology, metals, and mining seem less prone to layoffs triggered by AI.
A total of 70% of the CEOs interviewed expressed the expectation that AI will reshape their business models within three years, necessitating their workforce to acquire new skills during this period.
The managing director of the International Monetary Fund (IMF), Kristalina Georgieva, shared an analysis indicating that 40% of all jobs could be affected by AI, potentially intensifying existing inequalities. Georgieva suggests that half of the jobs exposed to AI may witness productivity benefits, leading to higher wages, while the other half could experience AI replacing human roles, resulting in decreased wages, reduced labour demand, and fewer job opportunities.
In Georgieva’s words, “Many of these emerging markets and low-income countries don’t have the infrastructure or skilled workforces to harness the benefits of AI, raising the risk that over time the technology could worsen inequality among nations.”
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Anticipate more successful collaboration between humans and AI
In the age where artificial intelligence (AI) continues to advance, the narrative of humans versus machines is evolving into one of collaboration and synergy. This part delves into examples that showcase how humans and AI are successfully working together, creating a partnership that enhances human capabilities rather than replacing them.
Healthcare revolution
In the medical field, AI complements human expertise to improve diagnostic accuracy and treatment plans. Radiologists, for instance, leverage AI algorithms to analyze medical images swiftly, allowing them to focus on interpreting results and making critical decisions.
Creative augmentation
The creative industries are witnessing a harmonious collaboration between humans and AI. Artists and designers utilize AI tools to generate ideas, automate repetitive tasks, and even inspire new artistic directions. This synergy is fostering innovation and pushing creative boundaries.
Customer service excellence
Chatbots and virtual assistants are transforming customer service by handling routine queries and providing instant responses. This enables human customer service agents to concentrate on more complex issues, emphasizing empathy and understanding that AI may lack.
Financial insights
AI algorithms analyze vast datasets in finance to provide real-time insights into market trends and investment opportunities. Human financial experts utilize this information to make informed decisions, combining AI’s analytical power with human intuition and strategic thinking.
Education reinvented
AI is enhancing personalized learning experiences in education. Intelligent tutoring systems adapt to individual student needs, offering targeted assistance and feedback. Teachers, freed from administrative tasks, can focus on mentoring and guiding students in their intellectual growth.
Collaborative robots in manufacturing
Collaborative robots, or cobots, are working alongside human workers in manufacturing settings. These robots handle repetitive and physically demanding tasks, promoting a safer work environment, while humans contribute their problem-solving skills and adaptability.
AI-Powered language translation
Language barriers are diminishing with AI-driven translation tools. These tools assist humans in bridging communication gaps and fostering global collaboration in business, diplomacy, and various other fields.
In this collaborative landscape, the fusion of human and AI capabilities opens up new possibilities for innovation and progress.
Read More: AI for Good: How Google is building AI solutions to global problems in Africa
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