- 99% of business leaders are preparing to cut staff over the next few years
- Managers and HR teams must prepare for human-AI hybrid workforces
- Workers must take ownership of their own AI skills
Virtually all (99%) executives expect artificial intelligence and automation to result in headcount reductions within the next two years, according to data from Mercer’s latest Global Talent Trends report.
While most managers believe that redesigning work to incorporate AI tools will provide the best returns, only one in three (32%) believe their current workforce is in a strong position to be combined with automation.
Along these lines, business leaders’ top priorities for the coming year include redesigning work, improving HR analytics, and upskilling managers to lead hybrid workforces of both humans and AI agents.
Humans will be displaced, but they are still compelling
It is widely recognized at this point that AI will change job roles, eliminating some and introducing others, rather than eliminating the human workforce entirely. And it’s the HR department that faces some of the biggest challenges – HR teams’ top priority is improving the employee experience to attract top talent.
Still, downsizing will be inevitable in some areas, and Mercer’s data indicates that early career workers aged up to around 27 may be most affected.
Even as administrative workloads become automated, workers still clearly have an appetite for AI, with a third (35%) noting that they would consider quitting if they felt they did not have adequate access to tools or training.
Looking ahead, some of the most widespread organizational changes we are likely to see include simplifying reporting lines, centralizing governance, creating self-organizing teams, and flattening hierarchies.
Mercer’s recommendations for the future are that C-suite leaders prioritize work design and upskilling, that HR managers shift toward human-machine performance metrics, and that employees take ownership of their own AI competency.
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