Key Points
- Global Impact: A quarter of CEOs globally predict at least 5% job cuts due to generative AI in 2024.
- Industry Variation: Media, banking, insurance, and logistics expect more job losses, while engineering, construction, and tech are less affected.
- Profitability vs. Change: 46% of CEOs see AI boosting profits in the next year, but 47% foresee little change.
- Economic and Social Effects: AI’s role in economies and societies is a major topic at the World Economic Forum.
- Adoption and Skills: 32% have adopted generative AI, with 69% recognizing the need for new employee skills.
- Cybersecurity Concerns: AI’s risks include cybersecurity and disinformation.
- Reduced Inflation Worries: Less concern about inflation, with a focus on AI and climate change.
Summary
As the World Economic Forum convenes in Davos, a striking revelation emerges from a PwC survey: a significant 25% of global CEOs anticipate generative AI leading to a minimum of 5% job reductions this year. Industries like media and banking brace for more significant impacts, whereas sectors like construction and technology feel more insulated.
Interestingly, nearly half the CEOs predict a boost in profitability thanks to AI, but an equal proportion expects minimal change. This dichotomy highlights AI’s diverse effects across different sectors. The survey, encompassing 4,702 leaders from 105 countries, underscores AI’s profound implications on both economies and societies.
The survey results reflect a crucial transition. Business leaders are shifting focus from macroeconomic challenges to industry-specific disruptions, particularly AI and climate change. With a growing number of executives planning to deploy generative AI, 2024 appears to be a year of transformative change.
Despite the looming challenges, there’s a sense of optimism. Concerns about inflation are receding, and there’s anticipation of stronger economic growth. However, inflation and macroeconomic volatility still overshadow threats like cyber risks and climate change. This nuanced landscape suggests that while AI promises productivity gains, it also necessitates a careful balancing of growth, skills development, and risk management.
Source: CEOs say generative AI will result in job cuts in 2024
Keep up to date on the latest AI news and tools by subscribing to our weekly newsletter, or following up on Twitter and Facebook.
