According to a recent survey by PricewaterhouseCoopers (PwC), approximately one-quarter of global CEOs are considering reducing their workforce by at least 5% due to the implementation of generative artificial intelligence (AI). The survey, published on January 15, gathered responses from over 4,700 CEOs across 105 countries, with more than half of these CEOs leading organizations with annual revenues exceeding $100 million.
The survey found that nearly a third of these companies have already integrated generative AI into their operations. Despite the potential for job cuts, PwC’s report suggests that these reductions in certain areas might be balanced by new hiring in others. Specifically, while 14% of technology CEOs foresee a decrease in headcount due to generative AI, an optimistic 56% expect to increase hiring in 2024.
The impact of generative AI on employment seems to vary across sectors. The media, entertainment, banking, capital markets, and insurance industries are more likely to experience staff reductions due to AI technology. In contrast, sectors like engineering, construction, technology, metals, and mining appear less affected by AI-driven layoffs.
This survey’s findings align with an analysis shared by Kristalina Georgieva, managing director of the International Monetary Fund (IMF), which indicated that 40% of all jobs are vulnerable to AI. Georgieva highlighted the potential of AI to exacerbate inequality. She noted that while half of the jobs at risk could benefit from productivity gains and potentially higher wages due to AI integration, the other half might see a decrease in wages, labor demand, and employment opportunities. In extreme cases, some jobs could be entirely phased out.
Georgieva pointed out the particular challenges for emerging markets and low-income countries, which may lack the infrastructure or skilled workforce to leverage AI benefits. This disparity could lead to worsening inequality between nations. She emphasized the importance of establishing social safety nets and offering retraining programs for workers impacted by AI advancements.
The implications of AI on the workforce and global inequality are expected to be key topics at the upcoming World Economic Forum in Davos, attended by leaders from the tech industry and governments worldwide.
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