Artificial Intelligence (AI) seems to be ubiquitous in the corporate sector today. While many anticipate AI will drive job losses, others see a productivity boost that will enable human capital to be focused on new endeavors.
Citing research from The Chartered Institute for Personnel and Development (CIPD), RedCompass, a payments firm that leverages AI, believes that one in four big firms will see staffing slashed with more junior rules at the highest risk.
The CIPD research indicates that the financial services sector is the biggest beneficiary of AI, with 37% of employers expecting the technology to eliminate jobs, followed by IT, where 26% expect fewer hires.
Oliver St Clair-Stannard, VP of Payments AI Strategy and Go-To-Market at RedCompass Labs, says that slashing headcount is a “short-term move,” and that too many businesses are using AI in a rudimentary way to eliminate low-level services rather than redesigning how work is done.
“That isn’t innovation; it’s cost-cutting with an AI label and is more a reaction to overhiring in recent years than it is due to efficiency gains from AI,” said St Clair-Stannard. “In professional services, this is particularly risky. Replacing early-career roles removes the pipeline of future experts. The smarter approach is hybrid intelligence: using AI for repetitive analysis and training experts for strategy, interpretation and decision-making. This combination is what will allow companies to scale, delivering more with the same workforce.”
He believes that AI is leveling the playing field and thoughtful automation will help these firms gain an edge over businesses that cling to antiquated processes.
“Progress belongs to people who integrate human judgment with AI, not to those chasing easy efficiencies.”
