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A new global study by the IBM Institute for Business Value, Augmented work for an automated, AI-driven world, reveals that advancements in artificial intelligence are upending traditional business models and transforming the workplace. The study is based on two surveys of 3,000 executive leaders in 28 countries, and 21,000 workers in 22 countries.
The study found that business leaders are refocusing on revamping their operating models with automation and AI technologies, upgrading specific employee skills, and hiring next-generation talent to address skilled labour shortages. According to the World Economic Forum, AI and automation will disrupt 85 million jobs globally between 2020 and 2025, while creating 97 million new job roles. In total, 44% of workers’ skills will be disrupted between 2023 and 2028 at all levels of employment, from entry-level to executive and senior-level management.
Canadian executives participating in the survey believe that 42% of the workforce will need to be reskilled due to the implementation of AI and automation over the next three years. As a result, 58% of Canadian executives are investing in reskilling internally instead of opting to hire employees from outside the company. Overall, 87% of executives believe jobs will be augmented rather than replaced by AI.
Workforce skills and needs
The survey found that the most critical skills required of the global workforce in 2023 are:
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Ability to work effectively in team environments (40%)
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Ability to communicate effectively (38%)
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Willingness to be flexible, agile, adaptable to change (38%)
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Analytics skills with business acumen (35%)
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Ethics and integrity (33%)
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Industry/occupation specific skills (33%)
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Proficiency in reading, writing, and mathematics (32%)
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Foreign language (32%)
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Capacity for innovation and creativity (31%)
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Basic computer and software application skills (31%)
In Canada, time management and the ability to prioritize was cited by executives as the most in-demand skills (44%), followed by analytical skills with business acumen (41%) and ethics and integrity (39%).
The survey also found that employees are motivated by much more than factors such as salary, benefits and job security, citing the importance of:
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Impactful work (45%)
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Growth opportunities (43%)
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Compensation aligned to performance (38%)
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Autonomy (38%)
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Flexible work arrangements (38%)
To help address changes in the workplace caused by the adoption of AI and automation, the report recommends that business leaders take steps such as increasing the technical knowledge of their employees, investing in talent as much as technology, making work more rewarding, and drawing clear connections between job roles and business outcomes.