41pc of employers plan workforce cuts due to AI automation, says WEF report

LONDON:  A recent World Economic Forum survey reveals that 41 percent of employers plan to reduce their workforce due to AI automation. The survey, part of the WEF’s Future of Jobs Report, indicates that while 77 percent of large companies are looking to reskill and upskill their employees between 2025 and 2030 to work more effectively with AI, the report does not suggest a net positive outcome for job numbers as it did in previous editions.

Saadia Zahidi, managing director of the WEF, emphasised the transformative impact of AI and renewable energy on the labour market, increasing demand for specialized technology roles while diminishing the need for others, including graphic designers. The report predicts significant job declines for positions such as postal service clerks, executive secretaries, and payroll clerks, a trend driven by AI and other factors.

For the first time, graphic designers and legal secretaries have also been identified as potentially declining roles, reflecting generative AI’s growing ability to perform tasks traditionally done by knowledgeable workers. Meanwhile, demand for AI-related skills is on the rise; nearly 70 percent of companies are looking to hire individuals who can design AI tools, and 62 percent plan to recruit staff with skills to effectively collaborate with AI.

Despite concerns over job losses, the report offers a hopeful outlook, suggesting that technologies like generative AI may enhance human skills through collaboration with machines rather than simply replacing jobs, highlighting the enduring value of human-centered skills. Nonetheless, some workers have already lost their jobs due to AI, with companies like Dropbox and Duolingo citing AI as a reason for layoffs in recent years.