Nearly half of business leaders expect to reduce junior roles in the next year due to artificial intelligence efficiencies, whilst only one in three organisations have learning and development programmes for AI training.
The British Standards Institution (BSI) surveyed over 850 business leaders across eight countries and found that 39 per cent say junior or entry level roles in their organisation have already been reduced or cut due to efficiencies made by AI. A further 43 per cent expect to reduce such roles in the next year.
The term “automation” appeared nearly seven times more prominently than upskilling, training or education in a study of 123 company annual reports. The research found businesses are framing AI primarily as a driver of innovation and competitive advantage, with less emphasis on workforce implications.
More than half of business leaders (55 per cent) say the benefits of implementing AI in organisations are worth the potential disruptions to workforces. The top reason to invest in AI is boosting productivity and efficiency (61 per cent), followed by reducing costs (49 per cent).
Half of all respondents say AI is helping to reduce headcount, with 31 per cent reporting their organisation explores AI solutions before considering hiring a human for a role. Two fifths expect this to be standard practice within five years.
Business leaders acknowledge personal advantages from entering the workforce before AI adoption. Some 56 per cent say they are lucky to have started their career before AI transformed their role or industry, and 43 per cent acknowledge they would not have developed the skills they have today if AI tools had been around when they started.
Only 34 per cent of organisations have a learning and development programme to ensure successful delivery of AI training, with significant variation across countries. India leads with 64 per cent whilst Japan has the lowest at 16 per cent.
India shows the most aggressive AI adoption, with half of business leaders reporting junior roles have been reduced or cut due to AI and 65 per cent noting headcount reduction. Financial services leads sectors with 50 per cent reducing junior roles in the last 12 months.
Kate Field, Global Head Human and Social Sustainability, BSI, said automating entry-level roles without building a future talent pipeline creates latency risk for organisations.
“An AI-enabled workforce will still need to be developed,” Field said.
