Adecco Survey Forecasts AI Impact on Employment Reduction in Five Years

The adoption of Artificial Intelligence (AI) is anticipated to lead to significant reduction in job within the next five years, according to a survey conducted by staffing provider Adecco Group.

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The survey, encompassing insights from senior executives at 2,000 large companies globally, sheds light on the impact of AI technology in workplaces worldwide.

Adecco said 41 percent of surveyed senior executives foresee a reduction in their company’s workforce size due to the integration of AI technologies. This finding underscores the dual perception surrounding AI, wherein it is seen as both a harbinger of efficiency through task automation and a potential catalyst for job obsolescence.

Generative AI, a subset of AI capable of generating text, photos, and videos based on open-ended prompts, has fueled discussions regarding its potential to streamline repetitive tasks, while simultaneously instigating concerns over the displacement of certain job roles.

Recent months have witnessed prominent tech companies such as Google and Microsoft restructuring their operations, including layoffs, as they pivot towards integrating AI systems like OpenAI’s ChatGPT and Google’s chatbot Gemini, Reuters news report said.

A 2023 World Economic Forum study earlier indicated that 25 percent of companies anticipated AI to precipitate job losses, while 50 percent anticipated the emergence of new job opportunities. Despite recognizing AI as a transformative force, a significant majority of surveyed senior executives express concerns over the inadequacy of progress in adopting AI technologies within their respective organizations.

The World Economic Forum also suggests that AI has the potential to create more jobs than it replaces. It predicts that while AI may replace around 85 million jobs by 2025, it will also create approximately 97 million new roles.

“Almost all jobs are going to be impacted by AI one way or another. The dual nature of AI as both a potential job eliminator and creator, drawing parallels to the evolution spurred by digitalization in previous years,” Denis Machuel, CEO of Adecco, said.

Denis Machuel stressed the importance of companies preparing for this disruption by investing in the training and upskilling of their existing workforce to collaborate effectively with AI technologies, rather than solely relying on external recruitment for specialized roles.

The survey canvassed opinions from businesses across several countries, including the United States, Britain, France, Germany, Japan, Spain, Canada, Australia, and Singapore, spanning sectors such as defense, pharmaceuticals, healthcare, industry, and logistics. Adecco, a Swiss-based company that leverages AI in its operations, envisions significant opportunities in assisting clients through AI-driven solutions, including training and upskilling initiatives.

Denis Machuel concluded by affirming Adecco’s commitment to facilitating the seamless integration of AI into the workforce, emphasizing the importance of proactive measures to harness the potential of AI while mitigating its disruptive effects.

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