IBM predicts consequences of using generative AI:

1.4 billion workers need to retrain

New York, 22.8.2023

As recently as March, IBM predicted in a study that generative AI could impact 300 million jobs worldwide. In the new study, the company comes to a completely different assessment.

The IBM Institute for Business Value (IBV) used two previous surveys for its study: one included 3,000 C-level executives from 28 countries; the other surveyed 21,000 workers in 21 countries.

Here are some results:

– 87% of executives believe that most jobs today will be increased rather than replaced. This varies by department: jobs in procurement are considered the most likely to be eliminated, followed by jobs in risk, compliance and finance. Customer service and marketing positions don’t look so secure.

– The key takeaway is that executives estimate that four out of 10 people in the workforce, representing approximately 1.4 billion workers, will need to reskill as companies implement generative AI and automation.

– Young professionals will be hit the hardest. 77 percent of executives surveyed indicated that entry-level positions are already feeling the impact of generative AI and that this will increase over the next few years. For managerial or senior management positions, this figure is only 22%.

– IBM IBV research also found that those who successfully reskill to adapt to new technologies are not only more likely to keep their job, they get better at it.

– “Technology-driven job changes see an average revenue growth rate of 15%,” states the report, adding that those who focus on AI “see a 36% higher revenue growth rate than their peers.”

– IBM summarized the results: “AI will not replace humans – but humans who use AI will replace humans who don’t.”

– Another interesting finding is the declining importance of STEM skills. In 2016 it was considered the most important requirement in the workforce, in 2023 it has fallen to the least important. Time management and the ability to prioritize are the top critical skills today, followed by the ability to work in team environments and communicate effectively.

* MINT knowledge = mathematics, computer science, natural sciences and technology.

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