Managers Eye AI to Cut Costs, While Workers Fear Job Losses
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41% of managers are considering replacing workers with cheaper AI products this year, per a survey. Many see AI as a way to boost profits and lower salaries.
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Managers are emboldened by companies like IBM that have used AI to reduce headcount in some departments. However, predictions on AI's impact on jobs are mixed.
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Nearly half of managers think AI will lower salaries across the workforce. Over 50% fear their own management salaries will decline due to AI.
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Only 12% of managers actually want to use AI specifically to downsize. Most (66%) want AI to enhance employee productivity.
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Managers who embrace AI may replace ones who don't, so managers have incentives to incorporate AI even if skeptical of its benefits.