A Survey by EY Reveals Shifts in Workforce Dynamics Due to AI Adoption
Results from an EY survey indicate that approximately 50% of technology leaders foresee a blend of layoffs and hiring within the next six months as a consequence of AI implementation.
The integration of AI is causing a seismic change in skill requirements, prompting companies to reassess their hiring needs, as highlighted in a report by EY. In a poll conducted by EY in March, involving over 250 industry leaders, half of the respondents anticipate a trend of simultaneous layoffs and recruitment, reflecting the evolving skillsets demanded in the AI era.
The report underscores the critical challenge faced by technology organizations: while AI offers unprecedented innovation and productivity, it simultaneously reshapes workforce dynamics, necessitating a delicate balance between hiring and layoffs. Vamsi Duvvuri, EY’s Technology, Media, and Telecommunications AI leader, emphasizes the need for companies to reshape their workforce to be more AI-savvy, anticipating a continuous cycle of strategic realignment.
Despite these challenges, there is enthusiasm surrounding AI’s potential to enhance competitiveness and scalability. However, sourcing top tech talent remains a daunting task, with 61% of technology leaders citing difficulties in acquiring talent, particularly in cybersecurity, data science, and AI engineering.
Ken Englund, EY Americas Technology, Media, and Telecommunications Leader, acknowledges AI’s transformative impact on work dynamics, creating both opportunities and challenges. Despite concerns about AI and the need for increased regulation, most technology business leaders (85%) perceive emerging technology as having a positive impact on workplace culture.
The report also indicates sustained AI investment, with 82% of tech leaders planning to increase AI funding next year. Cybersecurity analysts, data scientists, and AI engineers are among the roles receiving increased focus in hiring initiatives.
To support employees in navigating the complexities of the AI landscape, businesses are implementing various strategies, including internal development programs and technical certifications. Nearly two-thirds of technology business leaders (64%) report the implementation of internal development programs to keep pace with rapidly changing generative AI (GenAI), while three out of four leaders (76%) have introduced internal technical certifications to support employees in adapting to GenAI.
Source: cio.com
