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- 99% of business leaders are preparing to cut staff in the next couple of years
- Managers and HR teams need to prepare for human-AI hybrid workforces
- Workers need to take ownership of their own AI literacy
Virtually all (99%) execs expect AI and automation to result in headcount reductions within the next two years, according to data from Mercer's latest Global Talent Trends report.
Most leaders believe that redesigning work to incorporate AI tools will see the best returns, only one in three (32%) believe their current workforce is in a strong position to be combined with automation.
To that tune, business leaders' biggest priorities for the year ahead 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're remain imperative
It's widely recognized by this point that AI will change job roles, removing some and introducing others, rather than entirely eliminating the human workforce. And it's the HR department that faces some of the biggest challenges – HR teams' biggest priority is to improve the employee experience to attract top talent.
Still, headcount reduction will be inevitable in some areas, and Mercer's data indicates early-career workers aged up to around 27 might be affected the most.
Even as administrative workloads become automated, workers still clearly have an appetite for artificial intelligence, with a third (35%) noting they'd consider quitting if they felt didn't have sufficient access to tools or training.
Looking ahead, some of the most prevalent organizational changes we're likely to see include simplifying reporting lines, centralizing governance, creating self-organizing teams and flattening hierarchies.
Mercer's recommendations for the future are for C-suite leaders to prioritize work design and upskilling, for HR leaders to shift toward human-machine performance metrics, and for workers to take ownership of their own AI literacy.
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