41% of companies around the world plan to reduce their workforces by 2030 because of AI, according to a new report. World Economic Forum (WEF) released its findings on Wednesday as part of the “Future of Jobs” report, which surveyed hundreds of large businesses around the world.
As well as downsizing, a stunning 77% of businesses plan to reskill or upskill existing workers to be able to get the best out of AI models, such as ChatGPT and Gemini, pointing to a future where work increasingly depends upon the collaboration between human staff and advanced technology. The report did not say that most technologies, including AI, were expected to be a “net positive” for the job market, however.
WEF’s findings will do nothing to quell ongoing anxieties about job security in the age of AI. In recent years, tech layoffs have exploded, with a number of companies openly admitting that they laid off staff in response to advancements in AI.
AI to Replace Jobs, Report Finds
41% of companies plan to make layoffs by 2030 in response to the increasing capabilities of AI, it has been revealed. According to World Economic Forum’s Future of Jobs report, which was released on Wednesday, the labor market is set to take a hit as businesses place an increased emphasis on human-machine collaboration.
With AI able to automate a number of different tasks, and growing in efficacy at an extraordinary rate, the survey shed light on how different businesses plan to take advantage of the fledgling technology over the next few years.
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In addition to making layoffs, 77% of businesses plan to reskill and upskill existing workers between 2025-2030, in an effort to get the most out of programs such as ChatGPT and Sora.
However, the report did not say that AI and other advanced technologies would prove a “net positive” for the labor market, in contrast to earlier findings.
New Tech Can Augment Existing Output
While the findings may prove unwelcome in some quarters, there is another side to this particular coin, with employers increasingly valuing AI-related skills. Nearly 70% of companies plan to hire workers who can create new AI tools and enhancements, with a further 62% to look for workers with the ability to work effectively alongside AI.
The report highlighted the potential of AI to augment human output, rather than replacing it outright. Among its conclusions, it drew attention to “the continued importance of human-centered skills.”
And in a press release ahead of its annual meeting in Davos later this month, WEF stated: “Advances in AI and renewable energy are reshaping the market – driving an increase in demand for many technology or specialist roles.” It did, though, go on to cite “a decline for others, such as graphic designers.”
Fears Grow as AI Momentum Gathers
Undoubtedly, WEF’s findings will be met with scorn by sections of the labor market. Since generative AI exploded onto the scene, and into the public consciousness, in 2022, it has faced its share of detractors. Skeptics have drawn attention to high-profile AI mistakes, and expressed concern that the technology could ravage the job market.
With this report, it’s likely that many will feel their fears are not totally unfounded. And with worldwide spending on AI projected to reach $632 billion by 2028, it’s hardly surprising that so many people have been vocal in their dissent.
It’s unclear exactly what the next few years will look like. But every indication points towards more layoffs, new use cases, and a growing rift between AI advocates and its staunch opponents.
