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Adecco report finds 41% of business leaders to employ fewer people because of AI

April 05, 2024

Artificial intelligence could cut into employment, according to a poll by The Adecco Group. It found that 41% of business leaders believe they will employ fewer people in five years because of AI.

Still, business leaders are preparing for AI, though they are looking externally. Adecco’s survey found that 66% will seek to bring in AI-skilled talent from outside their organization, while just 34% plan to develop their existing workforce.

Only 46% planned to redeploy employees who lost jobs because of AI.

“Artificial Intelligence is emerging as a great disrupter in the world of work, and the current path is unsustainable,” Adecco CEO Denis Machuel said. “Companies must do more to reskill and redeploy teams to make the most of this technological leap and avoid unnecessary upheaval. Buying your way out of disruption should not be the only approach companies take.”

The buy vs. build gap is widest in AI, but it extends to other digital skills, according to Adecco. It found that 62% of business leaders say they will hire data literacy experts externally, compared to 36% who said they will reskill or upskill teams. Similarly, 60% plan to hire to fill digital literacy gaps compared with 37% who say they will build up capability internally.

Adecco’s study surveyed 2,000 business leaders across the US, Canada, the UK, Germany, France, Spain, Singapore, Australia and Japan.

Other findings included:

  • 57% lack confidence in their own C-suite’s ability to understand the risks and opportunities afforded by AI. Just 43% of this group had formal training programs in place to improve AI skills, and only 50% said they provide guidance to staff on how to use AI at work.
  • A majority, 57%, say the human touch is still more influential than AI in the workplace, while creativity and innovation are cited as areas where skills are lacking.

“It is imperative that leaders not only urgently deploy AI upskilling but also ensure it is implemented safely and responsibly by keeping people firmly at the center of this transition,” Machuel said. “AI should be a tool that supports people’s unique creative potential and enables more time for strategic thinking and problem solving.”