50% of business leaders expect layoffs and hiring due to AI adoption in the next six months – EY report

In a bid to enhance competitiveness and operational efficiency, companies are increasingly integrating artificial intelligence (AI) into their workforce strategies. This shift is not only reshaping job roles but also redefining the skill sets required in today’s marketplace. According to a recent technology pulse poll by Ernst & Young LLP (EY US), AI adoption is poised to influence hiring and layoffs significantly over the next six months.

The poll reveals that 50% of business leaders anticipate a combination of workforce reductions and new hires directly linked to AI adoption. Despite these hiring plans, 61% of technology leaders report that emerging technologies have made sourcing top tech talent more challenging.

The poll highlights that AI has become a daily tool for 72% of employees, with prevalent applications in coding (51%), data analysis (51%), and communication (47%). However, concerns persist among industry leaders, particularly regarding regulatory oversight. Issues such as employee upskilling (33%), intellectual property protection (33%), and transparency in decision-making (37%) are at the forefront of discussions around AI governance.

Despite these challenges, the impact of AI on workplace culture has largely been positive, according to 85% of technology business leaders surveyed. Looking ahead, 82% of these leaders plan to increase their AI investments in the coming year, emphasizing roles like cybersecurity analysts (69%), data scientists (68%), and AI engineers (68%) as critical to their future strategies.

Recognizing the necessity of keeping pace with AI advancements, a significant 64% of respondents report implementing internal development programs to upskill their workforce, with 76% instituting technical certifications tailored to the demands of generative AI (GenAI).

As companies navigate the transformative effects of AI, they are not only adapting their workforce but also positioning themselves to capitalize on new opportunities for growth and innovation in a competitive global landscape.

Source: EY

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