Dive Brief:
- One-quarter of CEOs globally expect to trim headcount by up to 5% because of generative AI's impact, according to a PwC report published Monday. The firm surveyed 4,700 CEOs.
- The technology will likely take the greatest toll on media and entertainment companies. In that sector, nearly one-third of CEOs expect a 5% workforce reduction. By contrast, just 14% of tech CEOs expect similar cuts.
- Despite the expected trims in pockets of industries, 2 in 5 CEOs say the technology's adoption will actually add to their workforce by 5% or more, according to the survey.
Dive Insight:
The generative AI rush of 2023 is giving way to a more concerted effort around implementation this year. But companies have yet to determine the definitive impacts of generative AI to enterprise workforce needs.
Most CEOs believe generative AI will deliver customer service improvements, PwC found. But benefits won’t come without change.
"This is the biggest transformational shift in decades and will require new skills for front-line workers, end users, AI practitioners and leaders," said Bret Greenstein, PwC partner and AI leader, in an email.
CEOs' focus on outcomes and growth goals suggests corporate interest in investing in creating and developing an AI-savvy workforce.
"Additionally, the CEO Survey suggests that CEOs are leaning towards a net addition of employees in some very new roles, indicating a potential increase in demand for tech talent in the market," Greenstein said.
More than half of executives say AI will save them money in 2024, and nearly three-quarters increased planned tech investments this year in search of productivity gains, according to a Boston Consulting Group report published last week.
Despite executive enthusiasm, it's early days for generative AI adoption at scale. Just one-third of CEOs say generative AI was deployed companywide in the last year.
