AI + ML
The IT field as a “legacy” role under the microscope
AI-pocalypse New research suggests that the adoption of AI is creating significant employee redundancy across major organizations.
A BearingPoint survey of more than 1,000 global executives found that half reported 10 to 19 percent employee overcapacity due to “early automation and limited role redesign” as AI is introduced into businesses.
46% fewer tech graduates hired as bots take over lower-level jobs
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The report states that “roles centered around repetitive knowledge tasks such as routine analysis, process execution, transactional support, back-office operations, customer service, and entry-level financial or human resources support are becoming increasingly unnecessary.” “Half of executives say they have 10-20% of overcapacity caused by AI, and IT, management and customer support are already priorities.”
According to the study, as productivity gains accelerate, AI is expected to sharply increase overcapacity in the workforce by 2028, “leading to a sustained decline in demand for multiple profiles.”
All companies expect to have at least 10% excess capacity within three years, and 45% expect to be able to manage 30-50% excess capacity, according to the report.
BearingPoint partner Alfred Obereder said organizations are being forced to rethink not just who does the work, but how the work itself is designed and delivered. “Rather than layering AI on top of outdated capabilities, we are starting to dismantle traditional role definitions and rebuild them around human-agent collaboration,” he said.
Organizations need to balance overcapacity in “legacy roles” while finding skills in areas critical to AI. “We will need to fundamentally rethink workforce planning, talent development, and organizational design.”
register BearingPoint asked if this could mean job losses in the short term.
Last week, UK-based global law firm Clifford Chance announced it would reduce the number of business services staff in its London office by 10 percent to increase the use of AI in back-office functions.
Consultancy PwC also said AI could lead to fewer workers being hired. In the tech industry, Amazon has told employees that some of their workforce will be replaced by bots, but this does not mean total layoffs in the short term.
But an October study from Yale University argues that so far there is little evidence that AI will lead to job losses, at least in the United States. Researchers said they looked at the labor market since ChatGPT’s release and found no “notable disruptions.” ®
