Key Takeaways
- 99% of CEOs are preparing to face layoffs as a result of AI.
- Business leaders believe redesigning work to fit around automation and AI is the surest way to see return-on-investment.
- Humans remain a critical part of integrating AI successfully, and many business leaders remain committed to improving employee benefits and upping recruitment efforts for top talent.
99% of businesses are expecting AI to cause some headcount reduction in the next two years, according to a new report.
Likewise, business leaders believe redesigning work to fit around AI tools and automation is the best way to see a return-on-investment, suggesting significant structural changes are in the works for many teams.
Despite layoffs being an expected consequence of the AI boom, humans will continue to play a significant role in integrating the technology. Plus, many HR teams revealed a commitment to improving employee benefits and sourcing top talent.
Executives: AI Will Lead to Headcount Reduction
Mercer’s latest Global Talent Trends report found 99% of CEOs are preparing to cut staff due to advances in AI and automation.
Similarly, 98% of executives are planning organization design changes in the next two years, suggesting a massive shift in general business operations because of AI.
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Mercer’s latest survey consisted of 9,000+ employees, 800+ C-suite members, 1,600+ HR leaders, and 100 investors.
Redesigning Work Around AI
Respondents of the survey also suggested that redesigning work in order to incorporate AI tools will be crucial for long-term success. Overall, 63% of executives believe a redesign initiative will drive the greatest return.
While only 32% of executives surveyed believe their current workforce is in a strong position to be combined with current automation technologies, employees remain eager to use these tools, and see them as a key part of their individual development. In particular, 35% of respondents said they’d consider quitting their role if they felt they didn’t have enough access to tools or training.
As well as redesigning work, the survey identified upskilling managers as another priority for business leaders. This will provide the skills needed to lead hybrid workforces consisting of both humans and AI agents.
Humans Remain Crucial
AI is already changing job roles, and layoffs remain unavoidable in some areas. Mercer’s data pinpoints those below the age of 27 as the most vulnerable, suggesting entry and mid-level work is most at risk.
However, recent data from Tech.co found businesses face a rework tax when using AI tools. Overall, SMBs spend over a quarter of an hour of AI use reviewing, editing, and fact-checking output. Those that spent the most amount of time reworking were also more likely to see higher productivity gains, suggesting humans still have a key role to play.
Recruiting and retaining top talent is a significant priority for business leaders in the next few years. 78% of executives say their organization is well-placed to compete for top talent, and 59% of HR leaders say difficulty attracting talent with vital digital skills is the top workforce challenge facing businesses in 2026.
