41% of Companies Plan Workforce Reductions Due to AI
AI Automation Spurs Job Reductions, But Upskilling Efforts Aim to Mitigate the Impact
The World Economic Forum (WEF) reports that 41% of employers plan to reduce their workforce due to automation and AI, while 77% aim to upskill employees to enhance human-machine collaboration by 2030.
According to the "Future of Jobs" report, AI advancements are reshaping labor markets by increasing demand for tech specialists while reducing roles in areas like graphic design and payroll management. AI-driven job augmentation, rather than outright replacement, is emphasized as a critical opportunity for human-centric skill enhancement.
Post office clerks, executive secretaries, and payroll staff are among the jobs expected to see the fastest reduction in numbers in the coming years, either due to the proliferation of AI or other emerging trends.
The report noted that “the inclusion of graphic designers and legal secretaries just outside the top 10 fastest-declining roles, a prediction seen for the first time in the Future of Jobs Report, may reflect the growing ability of generative AI to perform knowledge-based tasks.”
On the other hand, AI-related skills are increasingly in demand. Nearly 70% of companies plan to hire new employees with skills in designing AI tools and improvements, while 62% aim to recruit more individuals with the expertise to collaborate effectively alongside AI systems.
Offering an optimistic perspective, the report highlighted that the primary impact of technologies like generative AI on jobs might lie in their potential to "augment" human skills through "human-machine collaboration" rather than outright replacement. This is particularly true given the enduring importance of human-centered skills.
Nevertheless, many workers have already been replaced by AI. In recent years, some tech companies, including Dropbox and the language-learning app Duolingo, have cited AI as a key factor behind layoffs.