44% of business leaders report that there will be layoffs in 2024 resulting from AI efficiency

44% of business leaders report that there will be layoffs in 2024 resulting from AI efficiency, per CNBC.

As per a recent report by ResumeBuilder involving 750 business leaders using AI, 37% of respondents indicated that the technology had replaced workers in 2023. Additionally, 44% foresee layoffs in 2024 due to AI efficiency gains. Despite these reports of AI-driven workforce reductions, numerous experts differ with Elon Musk's perspective.

Julia Toothacre, a resume and career strategist at ResumeBuilder, acknowledges that the survey results might not precisely represent the broader business landscape. She notes that many traditional and smaller organizations may not embrace technology to the extent of larger companies.

While acknowledging the reality of layoffs, AI technology is also empowering business leaders to restructure and redefine job roles. According to Alex Hood, Chief Product Officer at Asana, nearly half of the time spent at work involves activities that he terms "work about work," encompassing status updates and cross-departmental communication. Reducing this aspect through AI could be a significant improvement, he suggests.

Marc Cenedella, founder of Leet Resumes and Ladders, emphasizes that with AI handling task-based work, workers have the opportunity to move up the value chain. He envisions a scenario where employees can focus on "integrating or structuring or defining what the task-based work is," likening it to the shift in mid-century office culture when word processors made entire floors of typists obsolete.

Asana's State of AI at Work 2023 report indicates that employees believe 29% of their work tasks are replaceable by AI. However, Asana promotes "human-centered AI," aiming to enhance human abilities and collaboration rather than outright replacing people. The report suggests that the more individuals understand human-centered AI, the more positive impact they believe it will have on their work.

Considering that white-collar and clerical workers represent a significant portion of the global workforce, discussions around AI's impact on layoffs and potential work restructuring need to acknowledge the broader digital divide. As of 2022, 34% of the global population still lacked access to the internet, emphasizing the importance of addressing technological disparities.