How AI Could Change the Game for American Workers According to Top CEOs?

The recent survey by PwC revealed at the World Economic Forum in Davos, Switzerland, indicates a significant impact of generative AI on global employment and business strategies. 

According to the survey, 25% of global CEOs anticipate at least a 5% reduction in workforce due to AI deployment, particularly in the media, entertainment, banking, insurance, and logistics sectors. 

Conversely, engineering, construction, and technology sectors expect minimal job cuts from automation, the Financial Times reports.

Generative AI, capable of rapidly producing human-like text, images, and code, is predicted to enhance profitability for 46% of businesses within a year, the report said. 

However, nearly half of the respondents foresee minimal impact from this technology. The survey, which involved 4,702 company chiefs from 105 countries, underscores AI’s significant economic and societal influence.

Key figures in AI, such as OpenAI’s Sam Altman and Microsoft Corp’s MSFT Satya Nadella, are expected to discuss these topics at the forum. 

While AI promises increased productivity, it also poses challenges for workforce stability. 

The survey indicates optimism for more robust economic growth in 2024, but concerns about AI and climate change are prominent.

Bob Moritz, PwC’s global chair, highlighted a shift in focus among business leaders from macroeconomic issues to industry-specific disruptions, such as AI and climate change. 

The survey found increased adoption of generative AI in businesses, with 32% incorporating it last year. It’s likely to improve product quality and necessitate new skills for 69% of employees.

Goldman Sachs forecasts that AI could automate a quarter of work in the U.S. and eurozone, potentially increasing global GDP by 7% over a decade. 

Cybersecurity and disinformation are top AI-related concerns for executives. The survey also notes a decrease in inflation worries, with less than a quarter of directors feeling highly exposed, compared to 40% last year. 

Optimism for global economic improvement has doubled since 2023 amidst speculation about central banks, like the U.S. Federal Reserve, reducing policy rates soon. 

Inflation remains a primary concern over cyber risks, geopolitical volatility, and climate change.

Previous reports indicated that the tech industry, led by companies like Amazon.Com Inc AMZN, Alphabet Inc’s GOOG GOOGL Google, Microsoft, and Meta Platforms Inc META, shifting from a rapid growth approach to a strategy focused on efficiency and cost control. 

This change comes as these companies recover from a downturn, with efforts to enhance shareholder value and maintain healthy margins. They implement targeted job cuts and reallocate resources, emphasizing AI projects and more disciplined spending.

In 2023, Google disclosed plans to cut 12,000 jobs, affecting about 6% of its full-time staff.

Meta announced in November 2022 its intention to reduce its workforce by 21,000, constituting almost 25% of its employees.

Microsoft confirmed a reduction of approximately 10,000 positions in January, representing 4% to 5% of its workforce. Amazon set a record for layoffs in 2023 by letting go of 27,000 workers.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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