- 99% of business leaders are preparing to downsize in the coming years
- Managers and HR teams need to prepare for a hybrid human-AI workforce
- Workers must take ownership of their own AI knowledge
Virtually all (99%) executives expect AI and automation to lead to workforce reductions over the next two years, according to data from Mercer’s latest Global Talent Trends report.
Most executives believe that redesigning work to incorporate AI tools will drive the best results, with only one in three (32%) believing their current workforce is in a strong position to be combined with automation.
With this in mind, business leaders’ biggest priorities for the coming year include redesigning work, improving people analytics, and honing managers’ skills to lead hybrid workforces comprised of both humans and AI agents.
Humans will be displaced, but they remain imperative
It is widely recognized at this point that AI will change job roles, removing some and introducing others, rather than eliminating the human workforce altogether. And it’s the HR department that faces some of the biggest challenges: HR teams’ top priority is improving the employee experience in order to attract the best talent.
Still, downsizing will be inevitable in some areas, and Mercer data indicates that early-career workers under the age of around 27 could be most affected.
Even as administrative workloads are automated, workers still clearly have an appetite for artificial intelligence, with a third (35%) indicating they would consider quitting if they felt they did not have enough access to tools or training.
Going forward, some of the most common organizational changes we’re likely to see include simplifying reporting lines, centralizing governance, creating self-organizing teams, and flattening hierarchies.
Mercer’s recommendations for the future are that leaders should prioritize work design and skills development, that HR managers move toward human-machine performance metrics, and that workers take ownership of their own AI knowledge.
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