- One in two executives declares being oversubscribed by 10 to 19% for workers
- Half say they could exceed capacity by 30% to 50% within three years
- Amazon is already looking to make AI-driven discounts
New research claims to show how artificial intelligence could be responsible for significant job losses at the world’s large organizations, based on current estimates.
Already, given today’s early standards in automation and AI tool deployment, half of global executives surveyed in a new BearingPoint study say their workforces are 10% to 19% above capacity, indicating an imminent need to reduce headcount.
Back-office operations, customer service, and entry-level finance and HR roles are among the most likely to be affected, BearingPoint found, with AI capable of autonomously handling routine and administrative workloads.
AI could be responsible for many job losses
In the future, AI-driven productivity gains could create even more overcapacity, reducing demand for many types of jobs. Within three years, all companies surveyed expect overcapacity of at least 10%, and almost half (45%) suggest they could have overcapacity of 30 to 50%.
Meanwhile, organizations are working to rethink what jobs look like, moving from traditional human roles to collaborative human-AI models in which AI enhances human output while freeing up more creative and productive time.
At the same time, businesses must be at the forefront of balancing these declining traditional roles with the growing demand for AI skills, by implementing upskilling programs to support today’s workforce.
Amazon CEO Andy Jassy previously said AI agents would mean “fewer people [will be] do some of the work that is being done today.
Although he recognizes that “more people [will be] doing other types of work,” Jassy predicts a total downsizing of companies in the coming years.
Although projections differ due to the large number of variables, this report comes at a similar time to an MIT study suggesting that about 12% of U.S. jobs could be at risk of elimination.
Via The register
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