Report: 25% of CEOs Expect AI to Lead to Job Cuts in 2024

A survey found that 25% of CEOs think artificial intelligence will trigger staffing reductions this year.

The survey, published Monday (Jan. 15), was conducted by PwC ahead of this week’s World Economic Forum in Davos, Switzerland.

A quarter of the CEOs said generative AI would lead to job cuts of at least 5% this year, with media and entertainment, banking, insurance and logistics leaders the most likely to expect AI-related layoffs, according to a Financial Times (FT) report.

At the same time, 46% of the CEOs said they expect generative AI to increase profitability in the next 12 months, while 47% believe the technology will bring little to no change, the report said.

“As business leaders are becoming less concerned about macroeconomic challenges, they are becoming more focused on the disruptive forces within their industries,” said PwC Global Chair Bob Moritz, per the report. “Whether it is accelerating the rollout of generative AI or building their businesses to address the challenges and opportunities of the climate transition, this is a year of transformation.”

The survey came one day after a report by the International Monetary Fund (IMF) that found that the impact of AI on employment will be especially pronounced in advanced economies.

While 40% of jobs worldwide are exposed to AI, the IMF said that around 60% of jobs in advanced economies could be affected, as the technology can impact high-skilled roles.

“While half of these jobs may benefit from AI integration, the other half may see key tasks currently performed by humans being executed by AI applications, potentially resulting in lower labor demand, reduced wages and decreased hiring,” PYMNTS wrote. “In some cases, certain jobs may even disappear.”

PYMNTS wrote late last year that AI’s integration into the workplace is part of an ongoing shift, one that dates to the days when “technical automations first started scaling across 18th-century textile industries,” fueling innovations that created jobs.

“Typically, the substitution of machines, like 19th-century agricultural harvesters or the sewing machine, for human labor results in more jobs being created than jobs replaced: a net positive,” that report said. “[T]echnical innovations themselves are features, not bugs, of a healthy, functioning economy where the doors are open to progress and development.”

For all PYMNTS AI coverage, subscribe to the daily AI Newsletter.