AI Replacing Jobs and Workforce Tensions in Deloitte’s 2024 Report

AI is about to revolutionize the world of work. Companies and leaders across the globe see AI rapidly transforming their businesses and industries. As AI drives these transformations, Deloitte released a report (2024) highlighting the tension in how workers view AI and technology’s role in the future of work. It provides an informative and structured analysis that unveils both the current landscape and the looming future of AI’s impact on human employment.

Are anxieties around AI replacing jobs warranted?

Deloitte’s research into AI found that over 60 percent use AI at work, whereas almost half of all employees are worried about losing their jobs. Deloitte also emphasizes on the report shared by The World Economic Forum (WEF), which states that by 2025, automation and a new division of labor between humans and machines will disrupt 85 million jobs globally in medium and large businesses across 15 industries and 26 economies.

It’s assumed that mid- and low-level positions will experience the most significant change, as manual tasks will become less relevant or easily replaceable by this technology. Roles in areas such as data entry, accounting, and administrative support will decrease in demand as automation and digitization in the workplace will increase.

While the longer-term implications of AI are relatively uncertain, experts determine that the more advanced and human-like AI becomes, the more roles will be automated, which can lead to job displacement.

Moreover, as AI becomes a common tool in business, hiring leaders will look for individuals with expertise using these technologies. The report clarifies that the shift in jobs will also force professionals to acquire new skills to be able to move into new occupational sectors.  Hence, its definite that only people who keep up with technological trends will be able to survive in the job market.

The need for balance between humans and machines

Given the transformative shift occurring currently, the Deloitte research team highlights the importance of balancing human skills with the benefits offered by technology.

A Deloitte Digital study finds that customer trust in a brand drops by 144 percent when they know a chatbot is answering their questions instead of a human. Hence, to address such concerns, organizations should implement the ‘humans-with-machines’ approach to help satisfy the needs of brands, their human workers, and their customers.

“As technology and cultural shifts reshape work and the workplace, it’s our human capabilities and outcomes that remain at the heart of growth and innovation,” -saysDan Helfrich, Chair and CEO at Deloitte Consulting LLP.  He further highlightsthat“Leaders, many of whom are already aware of this, should now turn this understanding into actionable strategies.

Likewise, Art Mazor, Global Human Capital Practice Leader and Principal at Deloitte Consulting LLP, states – “While organizations grapple with a myriad of challenges, a fundamental shift that leaders should embrace is putting humans back at the center of work — after all, it is humans, more than any physical assets, that drive business performance.”

Collaborating with AI can increase loneliness and isolation

Delliote’s research into AI also found that working collaboratively with AI can make human workers feel lonely and isolated, thereby suggesting that organizations may need to consciously foster social interactions.

For example, a group of insurance ‘digital life underwriters’ only has an AI system as their daily companion. Likewise, Uber now offers in-app and phone support for drivers who have a question or need help. In both the cases, humans just have machines around them to communicate and get their work done on a day-to-day basis.

Organizations should consider such situations and help people foster connections with their coworkers, like facilitating human-to-human interactions through affinity groups, social events, and online communities. Instead of viewing AI merely as a means to automate and optimize, they must see it as a tool for enhancing the human experience at work. The goal should be to foster a culture where social interaction is valued and encouraged, not seen as a distraction or an irrelevant element from ‘real work.’

Guidelines for AI use in companies

As per Delliote’s report, in many businesses, AI implementation is not controlled by management, and there are no clear guidelines for its use. Instead, it is implemented by the employees themselves – in a quarter of cases (26 percent), this even occurs without their direct line manager being aware of it.

Sixty-one percent of those surveyed, claim that their company or CTO did not have any internal guidelines on the use of AI. Furthermore, 24 percent of respondents stated that the use of AI was prohibited at their company, at least for the time being.

All of this poses considerable risks for companies, when it comes to data protection  or the circumvention of established operating processes.

Deloitte, therefore, calls for the responsible use of AI models: AI that is aligned with the company’s core principles and handled/controlled by certain guidelines.

“The widespread development and use of emerging technologies like AI demands systems of governance that encourage the ethical application of these tools,” said Beena Ammanath, Executive Director, Global Deloitte AI Institute and Trustworthy AI leader, Deloitte LLP. “As leaders look to strike a balance between innovation and regulation, ethically designed governance structures are important to hold both leaders and employees accountable in the responsible use of this technology.“

For leaders: the road ahead

Put simply, work is changing. To harness the extraordinary potential of this moment, organizations and professionals alike should counter their fear with curiosity and imagination. By embracing new business models, leaders should create an environment that will not only drive organizational success but also help humans thrive in the new age of work.

While all the above concerns need immediate attention, history shows that it often takes a long time for work to be redesigned to harness the full benefit of new technologies.  Deloitte’s latest report notes that while 94 percent of business leaders see AI as an important tool in their organization’s success, only 27 percent think their organization has the policies and processes to fully harness AI. 

Likewise, C-suit professionals need to realize that as AI continues to expand across organizations and as the demand for tech talent continues to outpace supply, the responsibilities of leadership will likely become more complex and multifaceted. 

Leaders will likely be under increasing pressure to get ahead of a constantly shifting market for: hunting tech talent, planning for needs before they emerge, and creating a culture of readiness to adapt quickly when market conditions change—and they may need to do so in a context in which the importance of tech talent to business performance is likely to grow. 

In brief

The rise of AI is undeniably transforming the job market, leading to challenges and opportunities. While it is natural to harbor anxiety, specifically around AI replacing jobs, the key to thriving in an AI-driven world lies in preparation, adaptability, and a willingness to embrace change.