- 99% of business leaders are preparing to cut staff in the coming years
- Managers and HR teams must prepare for hybrid human-AI workforces
- Workers must take charge of their own AI literacy
Virtually all (99%) executives expect AI and automation to result in workforce reductions in the next two years, according to data from Mercer’s latest Global Talent Trends report.
Most leaders believe redesigning work to incorporate AI tools will drive the best results, with only one in three (32%) believing their current workforce is in a strong position to combine it with automation.
To that end, business leaders’ top priorities for the coming year include redesigning work, improving HR analytics, and upskilling managers to lead hybrid human-AI agent workforces.
Humans will be displaced, but they are still essential
By now it is widely recognized that AI will change job roles, eliminating some and introducing others, rather than eliminating the human workforce entirely. And it’s the HR department that faces some of the biggest challenges: HR teams’ top priority is improving the employee experience to attract top talent.
Still, workforce reductions will be inevitable in some areas, and Mercer data indicates that early-career workers up to about age 27 could be hardest hit.
Even as administrative workloads are automated, workers still clearly have an appetite for AI, with a third (35%) noting they would consider quitting if they felt they didn’t have enough access to tools or training.
Looking ahead, some of the more frequent organizational changes we are likely to see include simplifying reporting lines, centralizing governance, creating self-organizing teams, and flattening hierarchies.
Mercer’s recommendations for the future are for C-suite leaders to prioritize work design and upskilling, for HR leaders to shift toward human-machine performance metrics, and for workers to take ownership of their own AI literacy.
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