Generative artificial intelligence (GenAI) was a major topic of discussion last week at the World Economic Forum Annual Meeting in Devos, Switzerland. The technology, which encompasses self-learning algorithms capable of producing new content (i.e. images, reports, emails, etc.), has grabbed the attention of world leaders and policy makers around the world โ due to how the technology is expected to rapidly transform major industries and fundamentally alter job roles in the coming years.ย
One report, โHow Generative AI is Transforming Business and Society,โ published by Oliver Wyman Forum, dove into GenAIโs influence on the workforce โ revealing the unprecedented pace of the technologyโs adoption. According to an analysis of the study published by Forbes, in less than a year, 55% of the global workforce has started using generative AI tools like ChatGPT. This is a rapid rate of adoption that dramatically outpaces previous technological milestones. Forbes reports that, for comparison, the internet took 17 years to reach similar levels of adoption, smartphones 21 years, and electricity 37 years.ย
The study further reveals that GenAI is expected to give a 20% boost to global GDP by 2030, equivalent to an estimated $20 trillion. The expected large-scale integration of the technology within the global workforce has caused 60% of white-collar workers to say they fear their roles will become either redundant or automated, according to the study. Additionally, the data reveals that 30% of jobseekers have already begun looking for a new role due to GenAI.ย ย
Despite this rapid adoption of the technology, the data suggests that this transition does not automatically translate to increased productivity. Only 61% of employees reported an increase in productivity, and only 53% said they have seen improvements to their work-life balance.ย ย
In terms of age-demographics, younger workers were found to be more concerned about AI automation than older employees. The study reveals Gen Z had the highest percentage of respondents who said they were โsomewhat to extremely concerned.โ For comparison, here is how the different age demographics differ in their concerns:ย ย
- Gen Z โ 72% were concerned.ย
- Millennial โ 65% were concerned.ย
- Gen X โ 53% were concerned.ย
- Boomer โ 40% were concerned.ย
The report also notes the difference in perceptions between CEOs and employees regarding GenAI. While 69% of CEOs see broad benefits, 70% of non-executive teams โdonโt believe their organization is ready to adopt generative AI responsibly.โ The data coincides with other recent studies suggesting many organizations donโt have an established strategy addressing AI.ย ย
Oliver Wyman Forumโs study also suggests the need for greater reskilling efforts, with 40% of executives believing their workforce needs training or retraining within the next five years. Moreover, 98% of workers feel they require more training, pointing to a substantial gap in preparedness for this technological shift.ย
When asked, โWhich of the following skills do you think would be important for you to receive training/reskilling efforts in over the next five years,โ employeeโs listed AI and Big Data as number one. The top 5 reskilling priorities for employees are listed as:ย
- AI and big data.ย
- Creative thinking.ย
- Analytical thinking.ย ย
- Leadership and social influence.ย
- Technological literacy.ย ย ย
As this technology advances, GenAI will present challenges for businesses and governments looking to manage its integration thoughtfully. Gaurdrails and official company policy are going to be required to ensure that the workforce can reap productivity gains and improvements to work-life balance.
