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UK – AI technologies to boost headcount, employers say

07 June 2023

Over half of UK employers, 54%, expect artificial intelligence technologies will have a positive impact on their staff headcount over the next two years, according to a survey by Experis, part of ManpowerGroup. 

The survey of more than 2,000 UK employers also found that 69% of businesses expect AI tools and technologies, including ChatGPT, machine learning and virtual reality, to have a positive impact on upskilling and reskilling, while 68% expect the tools to have an effect on employee training. At the same time, 67% of UK organisations anticipate a positive impact on employee engagement because of AI technology, and 60% think it can positively impact the onboarding process as well. 

“These findings suggest the mood amongst employers is largely at odds with wider concerns for AI having a negative impact on future jobs. It seems many businesses are in fact feeling optimistic about AI and its potential to be used for effective recruitment and retention,” Experis Director Rahul Kumar said.

“This doesn’t mean we should dismiss concerns around the possible negative impacts of AI on employment, but there is clearly a strong sentiment  amongst employers that these technologies can help overall,” Kumar added.

Talent demand in the UK’s IT sector is estimated to continue to outgrow supply, as the survey also shows that IT employers anticipate a Net Employment Outlook of 43% for the third quarter. While this has weakened by 5% on the previous quarter and 8% compared to this time last year, it is still a high outlook and 4% higher than the global employment Outlook for IT (39%).  It also contrasts with recently announced mass layoffs by companies including BT, Meta and Vodafone. 

The Net Employment Outlook is derived by taking the percentage of employers anticipating an increase in hiring activity and subtracting from this the percentage of employers that expect to see a decrease in employment at their location in the next quarter. 

“What we’re seeing is an overcorrection on the accelerated pace of hiring that took place in this sector during the Covid-19 pandemic,” Kumar said. “This time last year, we saw big tech firms hiring in anticipation of a boom in the sector, yet the economy returned to business as usual faster than expected.”

The optimism around technologies will also extend to the metaverse. The Experis survey found that despite 24% of respondents being very familiar with the metaverse, and 63% having no experience of using it in a professional context, they are optimistic about its potential use, with 65% believing new technology will have a positive impact on the world of work by connecting people.

Meanwhile, when it comes to looking to candidates, 76% are comfortable with AI use in the hiring process, but nearly half (46%) want a real person to review their application. And 40% of workers say they would feel comfortable with a virtual job interview.

Research from Experis also found that the top IT staffing priorities for UK employers are cybersecurity (36%), customer or user experience (33%), and technical support (33%), followed by database management (29%) and a customer relationship management system (25%).

UK employers cite investing in more automation (53%) and training and upskilling the workforce (53%) as the top two approaches they are taking to address tech challenges. These are closely followed by hiring new workers with the required skills (50%), reskilling workers to move into IT roles (50%), and hiring short-term staff (freelancers, contractors, etc.) to fill skills gaps (47%).