According to a survey of global CEOs, a quarter of them are contemplating reducing their workforce by more than 5% this year as generative artificial intelligence (AI) becomes more prevalent.
Recently, UK accounting giant Pricewaterhouse Cooper (PwC) published a report before the World Economic Forum (WEF) meeting in Davos, revealing that industries such as media, entertainment, banking, insurance, and logistics are most likely to cut jobs due to AI automation. These sectors expect generative tools to take over tasks currently performed by white-collar workers. On the other hand, engineering, construction, and technology companies are less likely, although not entirely immune, to be impacted by AI disruption.
Industry leaders estimate that inefficient systems and processes cost companies around $10 trillion in productivity loss every year. However, approximately 60% of CEOs believe that implementing generative AI tools to automate routine tasks could significantly boost their productivity.
The survey, which considered the responses of 4,702 international CEOs, revealed that just under half (45%) of them believe their current businesses will cease to exist in a decade if they do not adapt to emerging technology.
More than half (56%) of the responding CEOs believe that technological change will shape the way their businesses operate in the next three years.
Kevin Ellis, PwC’s Senior Partner, offered some optimism for those in the UK:
“Investment in GenAI does not seem to come at the expense of jobs, with UK bosses predicting more headcount increases than their counterparts overseas, reflecting the resources needed to adopt GenAI and the potential growth it could bring.”
What is generative AI?
Generative AI is a technology that enables the generation of informational responses, media, and content through text prompts to an artificial intelligence learning model.
Generative AI has been a topic of interest for the current U.S. administration, which aims to ensure that both workers’ rights and the benefits of the technology are applied ethically.
U.S. Secretary of Commerce, Gina Raimondo, stated, “President Biden has been clear — AI is the defining technology of our generation, and we must harness the power of AI for good while protecting people from its risks.”
One such risk has been identified ahead of the U.S. primary elections, with state legislators moving to ban AI-generated images, deepfakes, and other content that could imitate a candidate.
AI has numerous applications, but ensuring the safe and ethical use of the technology will undoubtedly be a major focus in 2024.
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