Job displacement is the biggest fear that has taken root ever since artificial intelligence (AI) and machine learning (ML) have made their entry. However, the World Economic Forum had reported last year that while AI may eat away 85 million jobs by 2025, it will also create 97 million new roles. Do industries across the world believe that?
According to a recent Manpower Group Employment Outlook Survey report, more than half the industries across the world (55 per cent) expect to see an increase in headcount due to AI and ML in the next two years. In India, 68 per cent industries believe that headcount will increase due to AI and ML. An average of only 16 per cent industries believe that AI and ML will result in a decrease in headcount whereas 14 per cent believe there will be no impact due to AI and ML.
Globally, 18 per cent industries expect a decrease in headcount, while 24 per cent expect no change in headcount due to the advent of AI and ML.
The communication services sector expects a whopping 75 per cent increase in headcount due to AI and ML, while the consumer goods & services space sees a 66 per cent increase in headcount. In the energy and utilities space, a 66 per cent increase in headcount is expected from embracing AI/ML, while in the financials and real estate space, 72 per cent increase in headcount is expected. The healthcare & life sciences sector expects to 65 per cent increase in headcount, while the industrials and materials expects a whopping 70 per cent increase just like the information technology, which also expects 70 per cent increase in headcount. Sixty-four per cent increase in headcount is expected in the transport logistics and automotive sector.
How optimistic are the workers about AI? As per the report, employers share that factory floor and frontline workers are least optimistic about AI. In fact, the study reveals that the level of optimism varies by seniority. While 80 per cent of senior leadership is optimistic about the positive effects of AI, 75 per cent of middle managers and supervisors and 79 per cent office workers are optimistic about AI. That means, the senior leaders need to rise to the occasion and spread awareness regarding the positive impact of AI and allay the fears associating with its adoption.
A significant 65 per cent of employees across senior ranks are very sure that AI will have a positive effect on the future of work.
The highest level of optimism (76 per cent) is observed in office professionals in the South and Central Americas. Compared to this, only about 54 per cent frontline workers in Europe feel positive about embracing AI.
Of course, adoption of AI comes with its challenges. The most common challenges organisations encounter are to do with cost, privacy and absence of AI skills. 41 per cent organisations see the high investment in AI as the biggest challenge, while 38 per cent are concerned about privacy and regulations. About 37 per cent worry about workers lacking the skills required to make effective use of AI, while 34 per cent employers feel the resistance from workers, to any kind of change, is their biggest concern.
There are also 34 per cent that feel implementation of AI effectively is a complex process, while 32 per cent feel their organisation’s data lacks the structure needed to use AI. In 26 per cent cases, the leaders themselves are not open to change.
Maximum employers in the IT sector (89 per cent) and the financials and real-estate sector (88 per cent), worldwide, feel that AI and ML will have a positive impact on business performance. They are also optimistic about effectively training, upskilling and reskilling their employees.