A quarter of CEOs see GenAI replacing 5% or more of their workforce this year

Nearly 20% of healthcare CEOs believe they can reduce their workforce by 5% or more in 2024 because of generative AI, according to the PwC annual CEO survey.  

However, the number of healthcare CEOs who believed they could reduce their workforce due to generative AI were relatively low in comparison to other industries, with media and entertainment (32%), banking and capital markets (28%), and insurance (28%) ranking the highest.  

Of the 4,702 CEOs surveyed worldwide, 25% across all industries believed that generative AI will replace their staff by 5% this year.  

The survey also found that the percentage of CEOs feeling hopeful about future growth prospects increased from 18% to 38% compared to last year. Despite the bright outlook, nearly half (45%) expressed doubts about the sustainability of their businesses over the next decade, noting that they will have to keep pace with innovation. A majority (70%) expect Generative AI to significantly alter the way their companies create value in the coming three years. 

“As business leaders are becoming less concerned about macroeconomic challenges, they are becoming more focused on disruptive forces within their industries. Despite rising optimism about the global economy, they are actually less optimistic than last year about their own revenue prospects, and more acutely aware of the need for fundamental reinvention of their business,” said Bob Moritz, Global Chair of PwC said in a statement. “Whether it is accelerating the roll-out of generative AI or building their business to address the challenges and opportunities of the climate transition, this is a year of transformation.” 

Benefits for organizations, employees, and clients

CEOs are optimistic about the transformative impact of generative AI, expecting significant benefits for both their top and bottom lines. A majority of 60% believe that generative AI will enhance the quality of their products or services and 32% of CEOs have already implemented generative AI solutions within their organizations. 

In terms of efficiency, CEOs perceive generative AI as a boon, with 64% expecting it to enhance employee productivity and 59% believing it will improve their own work efficiency. Additionally, nearly half (46%) foresee generative AI leading to an increase in profits by 5% or more, while 41% anticipate a similar boost in revenue. 

Despite the promise of generative AI, there exists a climate of uncertainty regarding its impact on the workforce. While 20% of healthcare CEOs anticipate a reduction in their workforce by 5% or more in 2024 due to generative AI, almost half of them express intentions to increase their headcounts by 5% or more in the next 12 months. 

Although 20% of healthcare CEOs think gen AI will reduce their workforce by 5% or more in 2024, nearly half of healthcare CEOs say they expect to increase their headcounts by 5% or more in the next 12 months, the survey found, pointing to the complex strategic considerations that CEOs must grapple with as they strive to balance innovation, efficiency, and workforce dynamics. 

“This year’s data suggests a high degree of CEO uncertainty ahead, but CEOs are taking action. They are transforming their business models, investing in technology and their people, and managing the risks and opportunities presented by the climate transition,” said Moritz. “If businesses are to thrive over the short and long-term, build trust, and deliver sustained and long-term value, they must accelerate the pace of reinvention.”