4
Impact on workforce

AI technologies continue to advance and are already reshaping job profiles and necessitating new skill sets.

From challenges to opportunities: How EY and AI work hand in hand

4.

Impact on workforce

Most of the leading minds in business AI say that employees will be empowered by the new technology to work smarter and more effectively. Speed and time savings are emphasized a lot. You often hear talk of augmenting and freeing up employees – typically in conjunction with reassurances that AI will not replace them and highlighting how it will allow them to spend more time on value-added, creative, and collaborative tasks. While employee efficiency gets the greatest attention, improvement in other areas is also noted.

As AI technologies continue to advance, they are having an ever-increasing impact on the workforce. Job losses due to automation are a legitimate concern, particularly in industries with routine, repetitive tasks.

However, the broader impact extends beyond displacement, with AI reshaping job profiles and necessitating new skill sets.

When asked whether the use of AI will lead to job losses, respondents’ views vary greatly across European countries. Overall, slightly more than two out of three respondents (68%) say that they expect fewer employees will be needed as AI systems become more established and the number and scope of use cases increases (see figure 3). The proportion is particularly high in Portugal (80%), Spain (78%), Italy (76%), and Belgium (74%). In contrast, there is somewhat less concern about job losses as a consequence of AI in Switzerland (57%), Germany (59%), and the Netherlands (64%).

One in three respondents in Italy (34%) expects that the new technology will replace human labor on a large scale. The figure is similarly high in Portugal (31%). In contrast, the proportion is significantly lower among respondents in Germany (14%), Switzerland (16%), and Austria (17%).

Figure 4 shows the general consensus among respondents across the nine analyzed European countries, with more than one in two (53%) stating that AI applications will influence their work – or are already doing so. In Italy and Switzerland (59% each), the figure is almost six out of ten. The proportion is also above average in the Netherlands (57%), and Austria and Germany (56%). On the other hand, it is below average in France (47%), Belgium (48%), as well as in Spain and Portugal (both 49%).

As discussed in the previous section, most respondents expect artificial intelligence to take over elements of their work and redefine their job profiles. Analyzed by country, more than three out of four respondents in Switzerland (76%) assume that artificial intelligence will take over some of their tasks. This if followed by Spain and Portugal (72% each), Italy (70%), and Belgium (68%), where employees are likewise sure that – sooner or later – some of their tasks will be taken over by applications from the field of AI. The average among all respondents is 65%. In Germany (57%) and Austria (59%), the figure is below average.

Viewed by rank, managers (72%) are more likely to assume that they will hand over tasks to AI-powered programs and machines in the future than non-management employees (61%). From a sector perspective, oil and gas (91%), technology, media and telecommunications (81%), financial services (81%), and insurance (81%) stand out.

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On average in Europe, almost one in five respondents (19%) say that AI is already influencing their work – in Italy, it is almost one in four (24%), while in Belgium, it is just over one in ten respondents (12%).

A sizable 38% of all respondents expect to see a noticeable increase in the influence of AI applications on their jobs within the next three years. Here, respondents in Switzerland (54%) clearly stand out.

That said, an interesting dichotomy is evident in that a not insignificant number of respondents think it unlikely that artificial intelligence will take over parts of their work (35%). And of those who do anticipate having to hand over some of their workload to AI, the vast majority don’t see that happening anytime soon (see figure 5). It appears that a substantial section of the workforce still believes that AI is not an imminent concern or it’s something that happens to somebody else. Either way, organizations clearly need to do more to sensitize sections of the workforce about the scale and scope of the AI revolution, an area in which training has a critical role to play.

Upskilling and reskilling initiatives are of paramount importance to mitigate any negative consequences of AI on employment. Organizations must invest in training programs to equip their workforce with the necessary competencies to thrive in an AI-driven economy. Additionally, fostering a culture of lifelong learning is essential to ensure that employees remain adaptable and resilient in the face of technological disruptions. According to our survey results, not enough respondents are satisfied with the level of training on AI they get at work. Switzerland leads the way, where 36% say their employer is providing enough training. Employers in other countries need to do a lot better, most notably in Portugal, where only 14% of employees are satisfied with the current level of AI training they are receiving. Most employees want live training and workshops (43%), followed by online courses (38%). In the following section, we take a closer look at the investment priorities of organizations in AI capabilities, including training.

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