Artificial Intelligence (AI) has been a topic of both excitement and concern in the business world. While some fear that AI could lead to widespread layoffs, a recent survey by the Upwork Research Institute suggests a different narrative. The survey, which included 1,400 U.S. business leaders, revealed that the rise of generative AI is actually expected to spur companies to hire more workers. This finding challenges the prevailing notion that AI will replace human employees.
According to the survey, nearly two-thirds (64%) of C-suite executives expressed their intention to hire more professionals of all types due to generative AI. This positive outlook on hiring is reflected in the types of workers that organizations plan to bring onboard. The survey found that 49% of business leaders surveyed intend to hire freelancers, while another 49% plan to hire full-time employees. This even split between freelancers and full-time employees suggests a balanced approach to workforce expansion.
The research also revealed a disconnect between C-suite executives and their senior managers regarding the degree of AI adoption within their companies. While 73% of C-suite executives reported embracing AI, only 54% of VPs, 52% of directors, and 53% of senior managers expressed the same sentiment. This discrepancy may be attributed to a lack of training and understanding of how AI will impact work.
Kelly Monahan, the managing director of the Upwork Research Institute, emphasized the importance of bridging this gap. She suggested that organizations should implement change management strategies that include effective communication of expected outcomes related to generative AI adoption, clear policies, and addressing fear and uncertainty. Encouraging teams to adopt a learning orientation is also crucial in navigating the impact of AI in the workplace.
Contrary to concerns about AI leading to massive job losses, economic research, such as a study by Goldman Sachs, suggests that AI is more likely to be a complementary tool for human workers rather than a complete replacement. According to the Goldman Sachs study, automation based on AI is used in some capacity in about two-thirds of American jobs. However, the typical proportion of work in a given profession that can be automated by AI is between 25% and 50%.
This finding highlights the potential for AI to augment human capabilities rather than render them obsolete. Rather than eliminating jobs, AI has the potential to automate certain tasks, allowing employees to focus on more strategic and creative aspects of their work. This shift can lead to increased productivity and efficiency within organizations.
The Upwork survey also found that the adoption of AI varies based on the size of a company and the work arrangements of its employees. Midsized companies with workforces ranging from 501 to 5,000 employees showed the highest level of AI adoption, with 62% leveraging AI. In comparison, larger companies with over 5,001 employees exhibited a slightly lower adoption rate of 41%. Small companies with 251 to 500 employees had a 56% AI adoption rate.
Furthermore, the survey revealed that companies with remote-first workforces were more likely to embrace AI. Among full-time remote firms, 68% reported using AI, while only 53% of companies that primarily worked from physical offices did the same. The survey also indicated that companies with hybrid work arrangements, ranging from three to four remote days per week to two to three remote days per month, also showed a favorable attitude towards generative AI adoption.
As businesses continue to explore the potential of AI, it is essential to understand that AI is not a threat to human employment but rather a tool that can drive innovation, efficiency, and growth. The survey findings suggest that business leaders are optimistic about the impact of generative AI, with a majority of C-suite executives planning to hire more professionals. This hiring trend includes both freelancers and full-time employees, indicating a flexible approach to workforce expansion.
To fully embrace generative AI, organizations need to invest in training and education for their employees, ensuring they have the skills and knowledge to work effectively alongside AI technologies. Moreover, clear communication, change management strategies, and addressing concerns and uncertainties are vital for successful AI adoption. By adopting a learning orientation, businesses can navigate the evolving landscape of AI and leverage its potential to drive positive change.
First reported by Fox Business.
