A quarter of global CEOs expect the rise of generative AI to reduce workforces by at least 5% this year. . This is predicted by a survey conducted by PWC presented at the meeting of world leaders and business leaders in Davos, Switzerland, ahead of the World Economic Forum . Among the leaders at the forefront of the field of AI are expected in Davos Sam Altman once again at the head of OpenAI, and Satya Nadella from Microsoft, the two companies most involved in the development of generative AI products.
The survey highlights that industries led by media and entertainment, banking, insurance and logistics are most likely to predict job losses due to generative AI tools. Engineering and construction companies , like technology companies, least expect reductions due to automation.
The results of the PwC survey: for 46%, generative AI will increase profitability
46% of respondents said they expect the use of generative AI – systems capable of producing human-like text, images and code in seconds – will increase profitability over the next 12 months . However, 47% said the technology would produce little or no change. The findings, based on interviews with 4,702 business leaders across 105 countries, highlight the far-reaching impact AI models are expected to have on economies and societies, a topic that will feature prominently at meetings annuals.
Although many economists expect AI to lead to increased productivity as it becomes ubiquitous, it will also lead to workforce disruptions. The PwC survey showed that a growing number of executives expect economic growth to strengthen in 2024, but at the same time feel compelled to respond to disruptive developments such as generative AI and climate change. .
“Business leaders are becoming less concerned about macroeconomic challenges and more focused on the disruptive forces within their industries,” he said. Bob Moritz , global chairman of PwC. “Whether it’s accelerating the deployment of generative AI or building their businesses to meet the challenges and opportunities of the climate transition, this is a year of transformation. »
The implementation of generative AI in businesses is growing
According to the survey, a growing number of executives are considering implementing generative AI in the coming months, after 32% say they have adopted it in their business in the past year. 58% said they expect the quality of products or services to improve over the next 12 months, while 69% said employees will need to learn new skills. Goldman Sachs predicted last year that the latest innovations in AI could lead to the automation of a quarter of the work done in the United States and the euro zone, triggering a productivity boom that would eventually increase annual output of global gross domestic product by 7% in 2017. a decade.
The risks of generative AI
When it comes to AI risks, PwC's survey finds that executives are most concerned about AI risks. cybersecurity and the spread of disinformation . In the short term, the study found a reduction in anxiety about the broader outlook: less than a quarter of executives said their company was "highly/extremely" exposed to the threat of inflation, a sharp drop compared to 40% last year. Some 38% think the global economy will be better off this year, double the 18% who answered the same in 2023. This figure is well below the growth optimism that accompanied the end of Covid-related closures in previous years.
There are already reductions in evening staff
Duolingo, the language learning software company, is cutting some contractors as it uses generative artificial intelligence to create more content, a sign that companies are shifting some tasks typically handled by workers to AI tools.
Around 10% of contractors were “laid off,” a company spokesperson said Monday, January 15. “We no longer need as many people to do the kind of work that some of these contractors were doing. Part of this could be attributed to artificial intelligence,” the spokesperson said.
Chief Executive Luis von Ahn said in a letter to shareholders in November that the company was using generative artificial intelligence – technology that allows users to create text, voice and images more quickly – to produce “much faster,” such as showing scripts that help teach languages . The company also uses artificial intelligence to generate in-app inputs and has introduced a premium tier, Duolingo Max with AI-generated comments and conversations in other languages.
The spokesperson said the job cuts do not constitute a "direct replacement" of workers with AI because many of its full-time employees and contractors use the technology in their jobs. Duolingo had 600 full-time workers at the end of 2022, according to company documents. The spokesperson added that no full-time employees were affected by the reductions.
Chegg , a company that provides online homework help services, announced last June that it planned to cut 4% of its workforce and would better integrate artificial intelligence into its tutoring as students graduate. become familiar with chatbots.
In May, IBM CEO Arvind Krishna said the company plans to pause recruiting for positions that it believes could be replaced by AI technology in the coming years . It also states that 30% of jobs in back-office functions, such as human resources, could be automated using artificial intelligence tools over a five-year period.
Microsoft and the alliance with workers' unions
Intense interest in generative AI has led employee groups and unions to question whether companies will use the technology as an excuse to downsize.
In December 2023, Microsoft responded to these concerns and announced an alliance with the American Federation of Labor and the Congress of Industrial Organizations which is made up of 60 unions representing 12.5 million workers, to train people in artificial intelligence and see how technology can impact employment.
At an event announcing the partnership, Microsoft President Brad Smith said: The goal is to bring industry and unions together to “improve” the way people work. “I can’t sit here and say that AI will never replace a job,” Smith said at the event. “I don’t think that would be honest. AI is well designed to speed up and eliminate parts of the work that you might consider tedious.
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