Businesses are prioritizing AI over hiring new employees: Study
What's the story
A recent study by the British Standards Institution (BSI) has highlighted a worrying trend among global business leaders. The report found that many bosses are now prioritizing artificial intelligence (AI) over hiring new employees. This shift is largely because they see AI as a way to fill skill gaps and reduce workforce numbers, instead of investing in training junior staff members.
Impact on employment
AI solutions preferred before hiring
The BSI study, which surveyed over 850 business leaders from seven countries, including the UK, US, France, Germany, Australia, China, and Japan, found that 41% of bosses believe AI is enabling them to reduce their workforce. Nearly a third (31%) said their organization considers AI solutions before hiring. This trend could have significant implications for Gen Z workers entering the job market.
Job displacement
Threat to entry-level jobs
The BSI study also found that a quarter of bosses believe all or most tasks done by entry-level workers could be done by AI. This finding highlights the potential threat posed by AI to entry-level jobs, particularly for Gen Z workers. Susan Taylor Martin, CEO of BSI, stressed the need for a balance between harnessing AI and nurturing a thriving workforce.
Workforce changes
Entry-level roles reduced or cut
The BSI study also found that 39% of leaders said entry-level roles have already been reduced or cut due to efficiencies gained from using AI tools. These tools are now being used for research and administrative tasks. Despite these changes, more than half of those surveyed felt lucky to have started their careers before the rise of AI.
Business adaptation
UK businesses rapidly adopting AI technology
The BSI study found that UK businesses are rapidly adopting AI technology. A whopping 76% of business leaders expect new tools to bring tangible benefits to their organizations within a year. These companies are mainly investing in AI for improving productivity and efficiency, cutting costs, and filling skill gaps. The term "automation" appears nearly seven times more often than "upskilling" or "retraining" in company annual reports analyzed by BSI.