Tech Sector Braces for AI Adoption: Hiring and Layoffs Expected
A seismic shift is underway in the tech industry as artificial intelligence (AI) becomes more ubiquitous, with half of tech executives anticipating both hirings and layoffs in the next six months, reveals the Ernst & Young Technology Pulse Poll.
The survey, encompassing insights from 255 business leaders across the United States tech sector, paints a picture of an industry in flux. "One thing is certain: companies are reshaping their workforce to become more AI-savvy," asserts Vamsi Duvvuri, EY's Head of AI in Technology, Media, and Telecommunications, in a statement. "With this transition, we can anticipate a continuous cycle of strategic workforce realignment, characterized by simultaneous layoffs and hirings, not necessarily in equal volumes."
Indeed, the report unveils that tech leaders are investing in specific roles from a hiring standpoint. These roles include cybersecurity analysts (69%), data scientists (68%), and AI engineers.
Impact on Workplace Culture
Seventy-two percent of respondents affirm using AI at least daily in the workplace, with 85% stating that this emerging technology has a positive impact on their workplace culture.
"Our recent survey demonstrates that tech companies overall hold a positive sentiment towards the upcoming wave of productivity," remarked Ken Englund, EY Americas' Technology, Media, and Telecommunications Leader, in a statement. "There is much enthusiasm within these companies in terms of how they will successfully apply their own industry tools to themselves."
However, there are still warning signs for tech company leaders regarding AI, particularly concerning regulation, including:
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AI-generated biases (48%)
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Protection of user privacy (48%)
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Protection of intellectual property (47%)
Enhancing Employee Training
Entrepreneurs are also concerned about improving employee qualifications (33%), seeing it as crucial for their organization's success with AI.
According to the report, 64% of executives have initiated internal development programs to help employees keep pace with rapidly evolving generative AI. Three out of four business leaders (76%) also claimed to have implemented technical certifications to aid employees in staying abreast of generative AI.
These findings align with projected trends for 2024, wherein enhancing employee skills will be a top concern for companies as AI tools continue to gain traction in the workplace.
The EY survey also revealed that concerns regarding AI regulation remain prominent among technology business leaders. When addressing worries about AI, top priorities include enhancing employee skills (33%), safeguarding intellectual property (IP) from copyright infringement and theft (33%), and ensuring transparency in decision-making processes (37%). Additionally, almost half of technology business leaders advocate for increased AI regulation, particularly to mitigate AI-generated biases (48%), protect user privacy (48%), and uphold IP rights (47%).
Read also: Article: How AI is redesigning talent development (peoplemattersglobal.com)
Despite these ongoing challenges, investment in AI continues to soar. While many leaders express reservations about AI, 82% of tech business leaders intend to boost their AI investments in the coming year. In terms of recruitment strategies, tech leaders are concentrating on bolstering specific roles, such as cybersecurity analysts (69%), data scientists (68%), and AI engineers (68%).