1 in 4 CEOs plans to replace workers with AI
A recent study shows that 25% of CEOs plan to reduce their workforce by at least 5% due to the rise of generative AI. The study presented at the World Economic Forum in Davos, Switzerland was conducted by PricewaterhouseCoopers International Limited. It highlights the growing trend of replacing human employees with artificial intelligence for cost-saving reasons. The International Monetary Fund (IMF) cautions that nearly 40% of jobs worldwide could be impacted by AI advancements.
Media and entertainment sector leads in layoff intentions
The survey found that over 30% of media and entertainment CEOs plan to lay off employees in anticipation of AI advancements, leading other industries like insurance, banking, and telecom in layoff intentions. Despite known limitations of generative AI, such as plagiarized or factually inaccurate work, CEOs are moving forward with AI implementation. Bob Moritz, Global Chair of PwC, opines that business leaders are becoming more focused on disruptive forces within their industries and view this as a year of transformation.
IMF chief highlights AI-fueled inequality concerns, urges proactive measures
IMF Chief Kristalina Georgieva expressed her concerns about AI's effect on overall inequality in a pre-Davos blog post. She urged policymakers to proactively tackle this issue to avoid further social tensions, stating, "In most scenarios, AI will likely worsen overall inequality." Georgieva called on governments to create social safety nets and promote retraining programs to help vulnerable workers adapt to an increasingly AI-driven job market.
