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Jan 15, 2025, 05:01 ET
AI Job Fears Overstated: Less than 10% of Executives Expect a Decrease in Headcount Due to Automation
BOSTON, Jan. 15, 2025 /PRNewswire/ — AI remains a top priority for business leaders worldwide in 2025, with a strong focus on reaping tangible results from their AI initiatives. This year, one in three companies globally is planning to allocate over $25 million to AI.
For the second year, Boston Consulting Group (BCG)’s AI Radar global survey has captured the mood of business executives when it comes to AI. The findings, released today, reveal both optimism and significant challenges in realizing AI’s full potential. In the latest edition of the AI Radar report, titled From Potential to Profit: Closing the AI Impact Gap, BCG surveyed 1,803 C-level executives across 19 markets and 12 industries.
“In my discussions with CEOs, it’s clear they are prioritizing AI to drive productivity,” said Christoph Schweizer, CEO of BCG. “Our latest survey uncovers a crucial challenge: while 75% of executives rank AI as a top three strategic priority, only a quarter report meaningful value from their AI initiatives. Leading AI adopters have cracked the code on how to achieve impact by focusing on a targeted set of AI initiatives, scaling them rapidly, transforming core processes, upskilling their teams, and systematically measuring operational and financial returns. Many companies have an immense opportunity to close the gap between their ambitions and reality.”
How Leading Companies Stay Ahead of The Pack
Leading companies allocate more than 80% of their AI investments to reshaping core functions and inventing new offerings, while other companies focus 56% of their AI investments on smaller-scale, productivity-focused initiatives. Leaders also set clear goals and track top- and bottom-line impact. However, 60% of companies surveyed are failing to define and monitor any financial KPIs related to AI value creation.
Leading companies focus on depth over breadth, prioritizing an average of 3.5 use cases, compared with 6.1 use cases for other companies. These companies anticipate generating 2.1 times greater ROI on their AI initiatives than their peers.
Autonomous Agents: A Key Consideration in AI Transformation Worldwide
Agents are autonomous AI systems that achieve goals by using tools, analyzing data, and working across systems—with minimal human input. While still in the early days of deployment, 67% of executives are considering autonomous agents as part of their AI transformation, with optimism around agents consistent across geographies.
Only 7% of Executives Anticipate AI Automation Will Lead to an Overall Decrease in Headcount
Sixty-eight percent of executives anticipate maintaining their current workforce size, focusing on enhanced productivity and upskilling existing talent to meet AI demands. That contrasts with the fact that fewer than one-third of companies have upskilled even a quarter of their workforce—an improvement from last year, but still far from the level needed to help employees feel secure in adapting to a technology often perceived as a threat to jobs.
Meanwhile, 17% of executives expect AI to reshape the workforce by introducing new roles to replace redundant ones. Eight percent foresee AI driving an increase in headcount, while only 7% predict a reduction in workforce size due to AI automation.
“Successful leaders adopt the 10-20-70 framework to unlock AI’s business potential, allocating 70% of their efforts to transforming people, processes, and culture; 20% to data and technology; and just 10% to algorithms,” said Sylvain Duranton, global leader of BCG X. “However, two-thirds of companies face significant challenges in reimagining workflows, driving cultural change, recruiting talent, and upskilling their workforce. Ensuring the success of AI initiatives requires disciplined execution, a relentless focus on value creation, and a workforce ready to adapt and thrive in a rapidly evolving environment.”
Risks to Navigate
Executives identified data privacy and security (66%), lack of control or understanding of AI decisions (48%), and regulatory challenges and compliance (44%) as the top three AI risks to navigate. Cybersecurity is a critical concern, with 76% of executives acknowledging that their AI cybersecurity measurements require further improvements.
Download the publication here:
https://www.bcg.com/publications/2025/closing-the-ai-impact-gap
Media Contact:
Eric Gregoire:
+1 617 850 3783
gregoire.eric@bcg.com
About Boston Consulting Group
Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.
Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.
SOURCE Boston Consulting Group (BCG)