The results of a recent survey carried out by PwC have brought to light an intriguing revelation: a quarter of CEOs are of the opinion that artificial intelligence (AI) will result in considerable downsizing of staff by the year 2024. This survey, which was made public on January 15th, provides us with valuable insights into how business leaders perceive the impending impact of AI. These findings come just before the commencement of this week’s World Economic Forum in Davos, Switzerland.
According to a study, it has been found that about 25% of CEOs are expecting a reduction in jobs by at least 5% this year because of the introduction of generative AI. Sectors like media and entertainment, banking, insurance, and logistics are said to be at the highest risk, as leaders in these industries have shown greater concerns about layoffs related to AI, as reported by the Financial Times.
It is quite intriguing to find that the survey has unveiled a rather intricate viewpoint among CEOs when it comes to the influence of generative AI. On one hand, 46% of them anticipate a surge in profitability within the upcoming year. On the other hand, almost half of them (47%) hold the belief that this technology will not bring about any significant alteration.
Bob Moritz, the Global Chair of PwC, shared his thoughts on the findings. He expressed that business leaders are shifting their concerns from macroeconomic challenges to the disruptive forces present in their industries. They are now prioritizing actions such as expediting the implementation of generative AI and developing strategies to tackle the challenges and opportunities arising from the climate transition. According to Moritz, this year is all about transformation.
The survey conveniently aligns with a report from the International Monetary Fund (IMF), which highlights the significance of AI’s influence on employment in developed countries. The IMF indicates that AI could have a notable impact on approximately 60% of jobs in these economies, potentially resulting in a decline in labor requirements, diminished wages, and a decrease in recruitment for highly skilled positions.
Despite the worries surrounding the loss of employment opportunities, a number of specialists in the field firmly believe that the incorporation of artificial intelligence into our workplaces is actually a part of an ongoing transformation. According to Drew Edwards, the CEO of Ingo Payments, this shift has the potential to generate even more job opportunities than it eliminates. Edwards specifically highlighted how companies can establish their own interconnected systems and ensure a continuous circulation of funds within them by utilizing AI and other emerging technologies.
To sum up, the survey brings to light the contrasting viewpoints of CEOs when it comes to the effect of AI on employment. While there are those who predict layoffs, others perceive the chance for greater profits and game-changing possibilities in the ever-changing realm of AI incorporation. The ongoing argument surrounding the role of AI in jobs emphasizes the necessity for careful contemplation and well-thought-out strategies by businesses in light of technological progress.
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