The introduction of AI causes companies to have up to 20% too many staff

AI pocalypse New research suggests that the use of AI in large companies is leading to significant staff layoffs.

A BearingPoint survey of more than 1,000 global executives found that half reported 10 to 19 percent excess capacity due to “early automation and limited role redesign” as they adopt AI in their organizations.

“Roles that focus on routine analysis, process execution, transaction support and repetitive knowledge work – including back-office operations, customer service and entry-level financial or HR support – are becoming increasingly redundant,” the report says. “Half of C-level executives say there is 10 to 20 percent excess capacity due to AI, with IT, administration and customer support already high on their agenda.”

According to the study, AI is expected to lead to a sharp increase in excess capacity in the workforce by 2028 as productivity gains accelerate, “leading to sustained reductions in…”