AI rollout leaves firms with up to 20% too many staff

"A BearingPoint survey of 1,000 plus global execs found half report 10 to 19 percent workforce overcapacity due to "early-stage automation and limited role redesign" as AI is rolled out in their businesses. "Roles centered on routine analysis, process execution, transactional support, and repetitive knowledge work - including back-office operations, customer service, and entry-level financial or HR support - are becoming increasingly redundant," said the report."

""Half of C-level executives indicate 10 to 20 percent overcapacity induced by AI, with IT, administration, and customer support already high on their agenda." According to the study, AI is expected to drive a sharp increase in workforce overcapacity by 2028 as productivity gains accelerate, "leading to a sustained reduction in demand for multiple profiles.""

"Alfred Obereder, partner at BearingPoint, said organizations are being forced to rethink not just who does the work, but how work itself is designed and delivered. "Rather than layering AI onto outdated functions, they are beginning to deconstruct traditional role definitions and rebuild them around human-agent collaboration," he said. Organizations must balance overcapacity in "legacy roles" while finding the skills in AI-critical domains. "Workforce planning, talent development, and organizational design will need to be rethought from the ground up.""

AI deployment is producing measurable workforce overcapacity across major organizations, with many executives reporting 10–19 percent excess staffing tied to early automation and limited role redesign. Roles focused on routine analysis, process execution, transactional support, back-office operations, customer service, and entry-level financial or HR tasks are becoming increasingly redundant. Companies expect overcapacity to rise sharply by 2028 as productivity gains accelerate, with all firms forecasting at least 10 percent excess capacity within three years and many anticipating 30–50 percent. Organizations are rethinking role design, balancing legacy roles, and prioritizing AI-critical skills, talent development, and organizational redesign.

Read at Theregister