44% of US Entrepreneurs Expect Layoffs Next Year Due to AI Advancement

Microsoft Commits to Open Dialogue with Labor Union on AI Issues

More than one in three American businesses believe that artificial intelligence (AI) is replacing jobs, and they expect layoffs due to AI next year.

On the 16th (local time), CNBC cited a recent report published by the U.S. job platform ResumeBuilder, stating that 37% of business leaders think AI technology has replaced workers this year. Additionally, 44% responded that layoffs will occur next year due to AI-driven efficiency improvements.

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The survey was conducted on the 2nd of last month, targeting 750 business leaders from companies utilizing AI.

Among respondents, 53% said their companies are currently using AI, and 24% said they plan to start using it next year.

Moreover, the majority of companies (96%) said they will hire candidates with AI skills in next year’s recruitment. Furthermore, 83% responded that workers with AI skills have higher job security than those without.

The fact that AI technology is replacing jobs is also clearly shown in other surveys. In the 'Workplace AI Status 2023' report by Asana, a global work collaboration tool, workers answered that 29% of their tasks could be replaced by AI.

However, the report analyzed that the more people understand human-centered AI, the more they believe AI will have a positive impact on their work. AI is not only a threat to human jobs.

MS and AFL-CIO Form First Labor-Management Partnership on AI

As concerns about job losses due to AI grow, some labor organizations and companies have started seeking responses.

On the 11th, Microsoft (MS) signed an agreement with the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), the largest labor federation in the U.S. representing 12.5 million workers across 60 labor unions, agreeing to hold “open dialogues” about AI’s impact on jobs.

According to a survey released by the federation in August, 70% of respondents expressed fear that “AI will replace jobs.”

To address this, the labor and management included in the agreement details such as ‘AI learning sessions’ for workers to increase knowledge and understanding of AI technology, ‘hands-on workshops’ to support finding new opportunities in the AI field over the next three years starting next year, and MS-hosted ‘Labor Summits’ where workers can participate in the AI technology adoption process.

They also agreed to reflect workers’ perspectives and expertise when developing AI technology and support the establishment of public policies to enhance frontline workers’ technical skills.

Brad Smith, MS Vice Chairman and President, said, “The goal of AI development is to increase worker productivity and transform work by reducing strenuous tasks to improve efficiency.” He added, “We will design AI with workers’ needs in mind and share in-depth information about the direction of AI technology to ensure AI can support workers without reservation.”

This content was produced with the assistance of AI translation services.