Final hours! Save up to 55% OFF InvestingProCLAIM SALE

AI seen cutting worker numbers, survey by staffing company Adecco shows

Published 04/05/2024, 03:09 AM
Updated 04/05/2024, 03:19 AM
© Reuters. An AI (Artificial Intelligence) sign is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai, China July 6, 2023. REUTERS/Aly Song
MSFT
-
ADEN
-
GOOGL
-

By John Revill

ZURICH (Reuters) - Artificial intelligence will lead to many companies employing fewer people in the next five years, staffing provider Adecco (SIX:ADEN) Group said on Friday, in a new survey highlighting the upheaval AI will bring to the workplace.

Some 41% of senior executives expect to have smaller workforces because of AI technology, Adecco said in a report based on a survey of executives at 2,000 large companies worldwide.

Generative AI, which can create text, photos and videos in response to open-ended prompts, has spurred both hope it could eliminate repetitive tasks and fear it will make some jobs obsolete.

Tech companies, including global giants Google (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT), have embarked on a wave of layoffs in recent months as they shift their focus to systems like OpenAI's ChatGPT and Google's chatbot Gemini.

The Adecco survey is one of the largest into the AI topic, and follows a 2023 World Economic Forum study which said 25% of companies expected AI to trigger job losses, while 50% expected the technology to create new roles.

But while most senior executives surveyed by Adecco say AI is a game changer, the vast majority say they have not made enough progress in adopting the technology.

"Almost all jobs are going to be impacted by AI one way or another," Adecco CEO Denis Machuel told Reuters. "AI can be a job killer and it can also be a job creator.

"Ten years ago there was this big fear many jobs are going to be destroyed by digital, when actually lots of jobs have been created by the digital world," he said. "Between jobs created by AI and jobs destroyed, we believe this is going to be balanced."

Companies needed to prepare for the disruption by training their staff to work with AI, Machuel said, rather than relying on recruiting specialists from outside.

Adecco polled businesses in the United States, Britain, France, Germany, Japan, Spain, Canada, Australia and Singapore. Sectors covered included defence, pharma, healthcare, industry and logistics.

© Reuters. An AI (Artificial Intelligence) sign is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai, China July 6, 2023. REUTERS/Aly Song

The Swiss company, which uses AI itself, for example in helping create resumes for clients, also sees the technology offering "massive opportunity" in its work with customers.

"We already engaged in training and up-skilling people on behalf of our clients," Machuel said. "We've sold a lot of consulting projects and the ramp-up that we see on that is quite interesting."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.