AI key to boosting productivity, but are we ready for it
Artificial intelligence is key to improving productivity, but most workforces are not ready to transform, a new study by HR consultancy Mercer has shown.
The generative AI is identified as a key factor in boosting productivity, with 40 percent of executives predicting AI will generate more than 30 percent productivity gains, according to Mercer's 2024 Global Talent Trends Study.
However, 58 percent of them believe that the pace of technological advancement has outstripped companies' ability to retrain workers.
The report aggregates insights from more than 12,000 business executives, HR leaders, employees and investors worldwide, exploring how businesses can act to thrive in the new era.
"Generative AI is on top of minds for executives," said Ilya Bonic, global career leader and head of strategy at Mercer.
"The technology itself will not deliver productivity gains, Rather, it's the combination of the technology plus human that makes the difference."
Bonic said that business leaders can think of 30 percent productivity gains the same as doing the amount of work with 30 percent less people, or doing 130 percent of the work with the same amount of people. Either way, it's an important opportunity to contribute to the future.
However, the study also found about 74 percent of executives express concerns about talented personnel's ability to adapt to rapid changes. Only 28 percent of HR leaders are confident about successfully implementing human-machine collaboration.
"Some of the risks for a larger labor market like China, which has different workforce segments, will be how do you make sure that the productivity or the benefits are shared for more people and are not just benefiting a few," Bonic said.
With continual technological advancements and changes in working methods, 96 percent of companies plan to redesign HR functions this year to meet organizational and employee expectations better, the study showed.
In China, the study found 45 percent of respondents said they trust their organization will teach the skills they need if their job changes as a result of AI or automation, while the figure was 30 percent for the rest of the world.
