AI's Impact On Jobs

25% of CEOs predict AI-driven job cuts this year, with generative AI impacting profitability and workforce.

Will I lose my job to artificial intelligence?

As the World Economic Forum convenes in Davos, Switzerland, a PwC survey reveals that 25% of global chief executives anticipate at least a 5% reduction in workforce due to the deployment of generative artificial intelligence this year.

Thriving in an age of continuous reinvention
The findings of our 27th Annual Global CEO Survey highlight companies’ efforts to reinvent themselves and address concerns for long-term viability.

Generative AI's Influence On Industries

The survey, which interviewed 4,702 company chiefs across 105 countries, highlights varying impacts across sectors. Media, entertainment, banking, insurance, and logistics are most likely to foresee job losses due to advanced AI tools. Conversely, engineering, construction, and technology firms are least likely to expect significant cuts from automation. About 46% of respondents see generative AI boosting profitability in the next 12 months, while 47% anticipate little to no change.

PwC chart on CEO AI survey

Economic Growth And AI-Driven Disruption

While a rising number of executives predict strengthened economic growth in 2024, they also acknowledge the need to adapt to disruptive forces, including generative AI and climate change. Bob Moritz, global chair of PwC, notes this year as pivotal for transformation, with business leaders less concerned about macroeconomic challenges and more focused on industry disruptions.

The survey indicates a growing trend in generative AI deployment, with 32% of executives having already adopted it across their companies in the past year. Further, 58% expect AI to enhance product or service quality, and 69% recognize the need for new employee skills.

Goldman Sachs predicted last year that recent AI breakthroughs could automate a quarter of tasks in the US and eurozone, potentially increasing global GDP by 7% over a decade. However, executives express concerns about AI-related cybersecurity and disinformation risks.

The study also shows a decline in inflation worries, with less than a quarter of directors feeling highly or extremely exposed, compared to 40% last year. Optimism for global economic growth has doubled since 2023, with 38% expecting better fortunes this year. This reflects hopes that the inflationary surge since 2021 is subsiding, with central banks, including the US Federal Reserve, speculated to cut policy rates by spring.

Central Banks To Challenge Market Interest Rate Predictions
Central banks are set to counter investor expectations of early interest rate cuts amid strong labor data.

Regional Variations In Economic Outlook

The PwC survey reveals regional differences in inflation concerns. Executives in Asia and North America are least worried, with about 20% feeling highly exposed to inflation. In contrast, those in Africa express more anxiety about price spikes. Despite other risks, inflation and macroeconomic volatility remain top concerns for executives, surpassing cyber risks, geopolitical volatility, and climate change.

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