More than half (55%) of employers expect to increase headcount due to artificial intelligence (AI) and machine learning over the next two years, with less than a quarter (24%) believing there will be no impact and just 18% anticipating reducing headcounts. The findings in ManpowerGroup's new report, "Building a People-First Strategy for AI-Powered Workforce Productivity," also reveal that nearly half (48%) of companies have already adopted AI, including generative conversational AI, marking an increase of 13% from the previous year.

"AI advances hold great promise to boost productivity, offer more meaningful work, and enhance human interactions," said Jonas Prising, ManpowerGroup Chairman & CEO. "To ensure this promise benefits the many, not the few, we must address skills gaps that currently exist and support people to develop in their careers and transition to new roles. Now is the time to prioritize upskilling, reskilling, and job redesign to build a brighter future of work."

KEY FINDINGS

• Hiring Expected to Grow: More than half (55%) of employers expect to increase headcount due to AI and machine learning over the next two years, while less than one in four (24%) believe there will be no impact. Just 18% anticipate the technology will lead to staffing decreases.
  
  
• Adoption Accelerates: Nearly half (48%) of companies have already adopted AI, including generative conversational AI, a 13% increase compared to responses one year ago (35%).
  
  
• Optimism Varies by Seniority: Employers reveal that AI optimism varies by seniority, with senior leaders (69%) being the most optimistic and factory floor and frontline workers (57%) being the least optimistic.
  
  
• Positive Impact Foreseen: When asked to predict the future impact of AI and machine learning at their organization, more than seven in ten (72%) anticipate AI will enhance overall business performance, with 70% expecting it to facilitate upskilling, reskilling, as well as employee training.
  
  
• Top Adoption Challenges: Respondents cited high costs (33%), concerns about privacy and regulations (31%), and lack of employees with AI skills (31%) as among the top challenges in AI adoption.

KEY OPPORTUNITIES TO LEVERAGE AI

• Upskill and Reskill Workforce: Organizations should scale their upskilling and reskilling initiatives to ensure employees have the necessary skills to work alongside AI-based technologies.
  
  
• Redesign Jobs Based on Human Talent: Job redesign efforts should be based on the human talent organizations already have, leveraging AI to augment and enhance human capabilities.
  
  
• Remove Barriers: To overcome challenges such as high costs, privacy concerns, and lack of AI skills, organizations should choose appropriate implementations, establish AI governance policies, and invest in workforce development.
  
  
• Foster Optimism Across All Levels: Leaders must engage employees at all levels, from senior leadership to frontline workers, to foster optimism and buy-in for AI-based technologies.
  
  
• Ensure Ethical Practices: Establish an AI council to discuss how the tech will be used and to develop an evolving policy aligned with regulations.

The data draws on ManpowerGroup's 2024 Q3 Employment Outlook Survey of more than 40,000 employers in 42 countries.

Download "Building a People-First Strategy for AI-Powered Workforce Productivity" to access additional statistics and explore recommendations on how to implement AI for your organization.