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AI adoption predicted to boost workforce by 9%, Avanade reports

A new study by Microsoft's partner Avanade dispels fears of AI leading to job cuts. 

Instead, 64% of respondents anticipate a 9% workforce increase due to AI adoption.

Most IT leaders see a shift to an AI-focused model as vital for competitiveness but face challenges in training and updating their staff’s skill sets. 

Florin Rotar, Chief AI Officer at Avanade, said: “While businesses and IT executives are enthusiastic about driving business value with AI, the findings also reflect the increasing interest and curiosity we are witnessing from leaders and their people globally.”

The study highlighted a growing skills gap in generative AI (GenAI), with businesses working to upskill their teams accordingly.

“Not only do businesses need to take action to ready their people with the essential skills needed to utilise AI effectively, but now is the time for leaders to prepare for an AI-first future by crafting well-defined and responsible strategies,” added Rotar.

The study also indicated that AI is seen not only as a tool for efficiency but also for fostering creativity. 

Jillian Moore of Avanade believes GenAI offers potential benefits for employees.

“Generative AI tools will give employees more time to create, innovate and imagine – all of which will enable organisations to lead in their sectors and act on new ideas in ways never imagined before. However, it will be key for leaders to highlight and enable its benefits from the start,” he said.

Yet, nearly half (49%) of those surveyed expressed doubt about their organisation's ability to handle risks tied to a broad integration of GenAI.

Moore said: “As an early adopter, we’ve found that ongoing training is critical and helping everyone understand how to fine-tune their prompt questions and instructions will help employees explore AI’s possibilities.”