Generative AI will require skills upgrades for workers, according to a report from IBM based on a survey of executives from around the world. One finding: Business leaders say 40% of their workforces will need to reskill as AI and automation are implemented over the next three years. That could translate to 1.4 billion people in the global workforce who require upskilling, according to the company.

Entry-level employees are expected to see the biggest shift and are already being affected, according to the report. It found that 77% of executive respondents say entry-level positions are already seeing the effects of generative AI, and that will intensify in the next few years. On the flip side, only 22% of respondents report the same for executive or senior management roles.

Will generative AI replace employees? The report found that a majority of executives, 87%, believe employees are more likely to be augmented then replaced. However, this varies across functions, with 97% of executives thinking employees in procurement are more likely to be augmented than replaced compared to 73% in marketing.

IBM’s survey included 3,000 C-suite executives from across 20 industries and 28 countries. It took place in December 2022 and January 2023.

To prepare for the future, IBM outlined some steps that firms may take, including:

• Redesign work, leading with the operating model. Rather than automating the same activities companies have always done, return to the drawing board to find a better way forward.
• Invest in talent as much as technology. Prepare the workforce for AI and other technology-based disruptions.
• Put skills at the center of workforce strategy. Leaders should be thinking about how to increase the overall technical acumen of their workforce.
• To give workers’ jobs more meaning, put employees in the driver’s seat. Automating tasks may enable employees to focus on what they are passionate about or free up time for skills development.