GenAI saves time, but will it save jobs?

Generative AI (GenAI) is reshaping the workplace, driving efficiency and streamlining tasks. However, this technological advancement has also sparked concerns about its potential impact on employment. As AI continues to evolve, the debate intensifies over whether it will create new jobs or lead to widespread job displacement.

A new report from Boston Consulting Group (BCG) titled "AI at Work: Friend and Foe" reveals that while confidence in AI's positive effects is growing, so too are concerns about job security.

The study, based on a survey of over 13,000 employees across 15 countries and regions, shows a significant shift in sentiment since last year. In 2024, 42% of respondents expressed confidence about AI and GenAI's impact on their work, a substantial increase from 26% in 2023. However, this optimism is tempered by a 5 percentage point rise in anxiety about the technologies.

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A striking disparity exists in job security perceptions between Generative AI (GenAI) users and non-users. Nearly 49% of regular GenAI users worry their jobs could be at risk within the next decade due to AI advancements, while only 24% of non-users share this concern.

The adoption of GenAI in the workplace is accelerating, with 64% of leaders beginning to implement GenAI tools to transform their organisations. Notably, frontline employees have seen a dramatic rise in GenAI usage, with over twice as many reporting regular use compared to 2023. Currently, 43% of frontline workers use GenAI for work-related tasks.

One of the most notable benefits of Generative AI (GenAI) is time savings. The study shows that 58% of GenAI users report saving at least five hours per week. This extra time is being reallocated to various activities: completing more tasks (41%), tackling new tasks (39%), experimenting with GenAI (38%), and focusing on strategic initiatives (38%).

Despite these productivity gains, there's still room for improvement in employee training. Only 30% of managers and 28% of frontline employees have received training on how AI will change their jobs, compared to 50% of leaders.

Interestingly, the study highlights significant geographical differences in GenAI adoption and attitudes. Respondents from Global South countries, including Brazil, India, Nigeria, South Africa, and those in the Middle East, generally displayed more optimism and less anxiety about GenAI compared to those in mature markets. The Global South also boasts a higher proportion of regular GenAI users across all organizational levels and is more likely to have received GenAI training in the past year.

As organizations continue to integrate GenAI into their operations, BCG recommends five key strategies: establish a transformation-first mindset, manage all transformations, build training muscle at scale, emphasize how GenAI can increase value creation and employee joy, and anticipate the evolution of roles, skills, operating models, data, and governance.

As the workplace continues to evolve with GenAI, it's clear that while technology is saving time, its impact on jobs remains a complex and ongoing question. The impact of GenAI on jobs will depend on a variety of factors, including the rate of technological advancement, government policies, and the ability of workers to adapt to new skills. While there is a risk of job displacement in the short term, the long-term outlook for employment is likely to be positive.

However, the report emphasises that the challenges organisations face as they continue on their GenAI journeys are more about change management than technology.