Over one-third of tech leaders in the UK admit to replacing human employees with AI, a decision they now express regret over due to hasty redundancies.
Tech leaders are growing increasingly anxious over the potential long-term consequences of AI-related job losses, a survey by Orgvue reveals. Nearly 4 in 10 business leaders in the UK admitted to making staff redundant due to AI adoption last year, and over half of them now acknowledge they may have acted too hastily.
Orgvue's analysis of 1,000 C-suite and senior decision-makers in medium and large organizations shows a rash approach to AI integration at many enterprises. According to Orgvue CEO, Oliver Shaw, businesses are learning the hard way that replacing human workers with AI without understanding the workforce's impact can go wrong.
"Businesses have invested in AI last year, driven by optimism. However, they are now realizing the importance of workforce transformation and the need for a strategic partnership between people and machines," Shaw said. "Upskilling programs are crucial to see the productivity gains that AI promises."
Notably, concerns over skills shortages have led to a sharpened focus on staff training and upskilling, with 80% of business leaders planning to reskill employees to use AI in the workplace. Moreover, 41% have increased their budgets to ramp up AI training schemes and opportunities for staff.
While a lack of AI expertise remains a challenge for many tech leaders, with nearly one-third reporting insufficient skills in this area, many still struggle to identify clear use-cases and measure success. One-quarter of respondents don't know which roles can benefit the most from AI, while 30% don't know which roles are at most risk from automation.
To gain a clearer understanding of the long-term impact, almost half of the surveyed leaders are working with third-party organizations to prepare their workforces. This represents a 6% increase compared to the year prior.
Despite some regret over redundancy decisions, Orgvue notes that this does not guarantee worker safety moving forward. Business leaders admitted they feel "less responsible" to protect their workforce from redundancies, with 62% highlighting their responsibility in this regard compared to 70% in the year prior.
AI still remains a key focus for enterprises, with 72% of leaders polled by Orgvue saying it will be the dominant driver of workforce transformation in the next three years. However, there are concerns whether AI will yield enough return on investment in the near term to justify the costs associated with lost talent and a downturn in productivity.
Regardless, 80% of businesses that invested in AI last year plan to ramp up investment in 2025, and 76% of business leaders are confident that their enterprise will be taking full advantage of AI by the end of 2025. Shaw states, "While businesses remain optimistic about AI, they need a better understanding of how the technology will change their workforce in the coming months and years."
"The integration of artificial intelligence (AI) in business has necessitated a focus on workforce transformation, with many enterprises learning the hard way that reckless AI adoption can lead to adverse effects. In light of this, businesses are now prioritizing upskilling programs to leverage the promised productivity gains from AI while ensuring their workforce can adapt."
"As AI adoption continues to be a dominant driver of workforce transformation, tech leaders are mindful of the potential risks associated with job losses due to automation. In an attempt to mitigate these risks, nearly half of the surveyed leaders are collaborating with third-party organizations to prepare their workforce for the long-term impact of AI in the business sector."
