Staff, schmaff: Business leaders racing to adopt unproven AI

"BSI published a report this week that surveyed business leaders from eight countries around the world - including the UK and US - that found 39 percent of business leaders have already reduced junior and entry-level headcount in favor of more AI adoption. And it's not stopping there. The study found that a further 43 percent of business leaders expect to further reduce entry-level roles (which includes both cutting existing roles and not hiring new people) in the next year in favor of AI. A full 50 percent "specifically" said AI is helping them reduce headcount."

"Not that those initiatives are paying off, mind you. A recent study from MIT found that 95 percent of enterprises have seen zero ROI on their AI projects - and that's hardly a new story. IT decision makers surveyed last year were saying the same thing back then, and IBM found this past May that 75 percent of CEOs it surveyed were still looking for those elusive AI gains."

""Businesses are ... framing AI primarily as a driver of innovation and competitive advantage," the report noted. "This may be driven by a fear of being seen to be behind their competitors rather than necessarily reflective of actual dynamics.""

""A cohort already impacted by disruption from Covid-19 to their schooling and adolescent development [is] now facing an uncertain employment"

Business leaders across multiple countries have already cut 39 percent of junior and entry-level roles in favor of AI adoption. An additional 43 percent expect to further reduce entry-level roles in the next year, and 50 percent say AI is specifically helping them reduce headcount. Most AI initiatives show poor returns: 95 percent of enterprises reported zero ROI on AI projects, and 75 percent of CEOs still seek benefits. Many leaders adopt AI out of fear of falling behind competitors rather than clear performance gains. Eliminating entry-level positions risks creating a jaded, underemployed young cohort already affected by COVID-19 disruptions.

Read at Theregister