The IBM Institute for Business Value's (IBV) new global study has flagged an imminent global skills gap. Based on executive insights, it's estimated that a staggering 40% of the workforce will require reskilling to adapt to AI and automation within the next three years. With World Bank statistics as a reference, this means an enormous 1.4 billion out of the 3.4 billion global workforce may need to adapt their skillset.
One of the most notable findings is the disproportionate impact on entry-level employees. 77% of executives opined that such positions are currently experiencing the ramifications of generative AI, a trend expected to intensify shortly. In contrast, only 22% felt senior management roles were undergoing similar changes.
However, it's not all doom and gloom. A significant 87% of executives believe generative AI will augment rather than replace employees. This belief varies by function; for instance, 97% feel procurement employees will be augmented as opposed to being replaced, while the figures stand at 93% for finance and risk and compliance roles, 77% for customer service, and 73% for marketing.
The study also highlights a disconnect between employers and employees concerning work values. While employees emphasize the importance of engaging in meaningful work, surpassing even growth opportunities and flexible work arrangements, employers mistakenly believe their staff prioritize flexibility the most.
This AI-induced transformation urges HR leaders to spearhead the adaptation, reshaping work and operational models for the future. A few critical measures for them include redesigning the work, leading with a revamped operating model, and investing as much in talent as in technology. Equipping the workforce for AI's disruptions, streamlining processes, and prioritizing skills are integral components of these changes.
Generative AI is shifting paradigms, making junior employees its primary target. This revelation forces business leaders to reassess job roles, required skillsets, and operational procedures.
IBM's two-pronged research, involving 3,000 global C-suite leaders across 28 countries and 21,000 workers across 22 countries, indicated that business triumph often necessitates a change in viewpoint. The era of the augmented workforce demands an evolution, leveraging AI technologies at its core. Those who have managed to adapt their operating model to this shift have seen a 44% performance edge over their competitors.
The key takeaway from IBM's study is that merely updating processes isn't enough. The business landscape requires a deeper, more intrinsic overhaul, where AI aids employees in focusing on high-value, creative tasks.
For businesses to not just survive but thrive, embracing AI and its consequent shifts is not optional but essential. The onus lies on companies to ensure their employees are equipped, prepared, and agile in this rapidly transforming digital era.
Reference: IBM Institute for Business Value (IBV) Study, 2023.