Key facts
- AI will not trigger a collapse in employment, according to a study by Adecco Group.
- Employers have cited AI as responsible for nearly a quarter of job cuts in the U.S. this year.
- Microsoft, HSBC, Amazon, and Standard Chartered are among companies laying off staff to invest in AI.
- Adecco CEO Denis Machuel believes AI will change roles and tasks rather than eliminate jobs.
- Employment rates are at record highs and unemployment near historic lows, Adecco noted, citing OECD data.
- Machuel stressed the importance of upskilling, reskilling, and collaboration to adapt to AI's impact on work.
Artificial intelligence will not lead to a collapse in employment, despite widespread concerns and recent layoffs by major technology firms, according to a study by staffing company Adecco Group. The study, citing data from the Organisation for Economic Co-operation and Development, indicates that employment rates remain at record highs and unemployment is near historic lows.
Global outplacement firm Challenger, Gray & Christmas reported that employers have cited AI as responsible for nearly a quarter of job cuts in the United States this year. Companies such as Microsoft, HSBC Holdings, Amazon, and Standard Chartered have recently announced layoffs, with some shifting investment toward AI development.
However, Denis Machuel, CEO of Adecco Group, stated that AI is driving a significant evolution in the world of work, but a "job apocalypse is not on the horizon." He suggested that some companies are using AI as a pretext for cuts stemming from weaker performance, restructuring, or other issues. Machuel emphasized that AI is more likely to change roles and tasks rather than eliminate jobs entirely.
Drawing parallels with previous industrial revolutions, Machuel noted that the advent of steam, electricity, information technology, and the internet transformed work without causing mass job destruction. He asserted that, based on current data, there is no evidence to suggest AI will lead to a different outcome. While acknowledging that some entry-level positions may disappear, Machuel pointed out that companies cannot afford to cut junior roles without damaging their future talent pipelines. He stressed the necessity of upskilling, reskilling, and closer collaboration among companies, governments, and educational systems to navigate this transition.