According to a study by the British Standards Institution (BSI), global business leaders say that young people entering the workforce are facing a "jobs disaster." Many companies prioritize investing in artificial intelligence (AI) technology over hiring new employees, which makes it harder for young people starting their careers. The report surveyed more than 850 business leaders in seven countries: the UK, the US, France, Germany, Australia, China, and Japan.
Image source note: The image was generated by AI, and the image licensing service is Midjourney
The survey found that 41% of executives believe AI allows them to reduce the number of employees. Nearly one-third (31%) of respondents said their organizations consider AI solutions before hiring new staff. Forty percent of leaders expect that in the next five years, companies will be more inclined to use AI to replace human workers. More worrying is that a quarter of respondents believe almost all entry-level jobs can be completed by AI.
Susan Taylor Martin, CEO of BSI, said that while AI brings great opportunities for businesses around the world, companies cannot ignore the importance of human resources while pursuing higher productivity and efficiency. She emphasized that long-term planning and investment in employees are necessary to ensure a sustainable and efficient work environment.
Additionally, the survey found that nearly 39% of business leaders said the application of AI technology has already led to the reduction or cancellation of entry-level positions. This phenomenon has raised deep concerns about the future job market. Although more than half of the respondents said they were lucky to start their careers before the widespread adoption of AI, 53% of leaders believe the benefits of AI implementation will outweigh the disruptions to the labor market.
With the rapid application of AI technology in UK businesses, the survey shows that two-thirds (76%) of leaders expect new AI tools to bring significant benefits to their organizations within the next 12 months. Companies mainly invest in AI to improve productivity, efficiency, reduce costs, and address skill gaps.
Notably, an analysis of company annual reports by BSI showed that the word "automation" appears nearly seven times more often than words like "skills development" or "retraining." A recent survey also found that half of British adults are concerned about the impact of AI on their jobs, fearing it may replace or change their work.
Currently, the UK job market is cooling down, with slower wage growth and an unemployment rate reaching a four-year high of 4.7%. However, most economists believe this is not directly related to the acceleration of AI investment. At the same time, there are warnings that the high valuations of AI companies could lead to a stock market bubble, risking a market crash.
Key points:
- 💼 Many companies choose to prioritize investing in AI, leading to a reduction in junior positions and creating employment challenges for young people.
- 🤖 A quarter of executives believe that almost all entry-level jobs can be completed by AI.
- 📉 The UK job market is cooling down, with rising unemployment rates, but it is not directly related to the acceleration of AI investment.
