41% of Companies Worldwide Plan to Reduce Workforces by 2030 Due to AI

By Evans Momodu
3 minute digest


Artificial intelligence is reshaping the job market, with 41% of employers planning to reduce their workforce as AI automates certain tasks, according to the World Economic Forum's (WEF) Future of Jobs Report released Wednesday.

The report highlights a dual trend; while some roles are declining, others that require AI skills are experiencing increased demand.

Out of hundreds of large companies surveyed globally, 77% indicated plans to reskill and upskill their employees between 2025 and 2030 to adapt to working alongside AI.

Unlike the 2023 edition, this year's report does not claim that most technologies, including AI, will be a net positive for job numbers.

The report notes that AI and renewable energy are driving significant shifts in the labour market. Demand is increasing for technology and specialist roles while declining for positions such as graphic designers, postal service clerks, executive secretaries, and payroll clerks.

The report also observes that generative AI, which can produce text, images, and other content, is playing a significant role in reshaping industries and reducing the need for knowledge-intensive jobs like graphic design and legal secretaries.

AI skills are increasingly sought after. Approximately 70% of companies plan to hire workers to design AI tools and enhancements, and 62% aim to recruit individuals who can effectively collaborate with AI systems.

The report emphasizes the potential for AI to augment human capabilities through human-machine collaboration, suggesting that human-centred skills will remain critical.

Despite optimism about AI's augmentative potential, the report acknowledges that some jobs have already been replaced by AI. Companies such as Dropbox and Duolingo have cited AI as a factor in workforce reductions in recent years, reflecting the transformative—and sometimes disruptive—impact of the technology.
Source: CNN