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Business leaders say AI will prompt rethink of skills and HR

27 March 2024

The majority of business leaders (81%) globally believe that AI and other tech disruptions will force organisations to radically rethink skills and human resources across large areas of their workforce, according to a survey by the World Employment Confederation.

The survey polled hundreds of senior executives from Fortune 2000 companies.

Meanwhile, 78% of those same executives are concerned that they cannot train employees fast enough to keep pace with technology developments in the next three years.

The WEC stated that one of the solutions to bridging unexpected resourcing gaps is an agile workforce.

Most senior executives (92%) say they’ll need a more flexible workforce in the next two years. Employing agency workers becomes increasingly attractive, not just as an extra pair of hands but also as a way to access hard-to-find digital skills and access higher-calibre candidates, the WEC stated.

At the same time, 79% of senior executives also highlight that employing agency workers with knowledge of a new technology is an effective way to spread understanding to permanent employees. Most (88%) plan to increase their use of agency workers in response to market dynamics.

“AI has made agility non-negotiable, and the HR services industry is crucial in helping to fill the labour and skills gaps brought on by digitalisation,” said Denis Pennel, the managing director of the World Employment Confederation.

Other key findings from the research showed that 80% of senior executives say talent planning has never been more difficult than it is today; 82% say that the approaches used to find and retain talent in the past are no longer fit for purpose; and 83% say that employees now value flexibility around where and when they work as much as other factors such as compensation.