Over 4 in 10 managers hope AI can replace their teams

Over 4 in 10 managers hope AI can replace their teams | Insurance Business Australia

Business Strategy

Over 4 in 10 managers hope AI can replace their teams

New survey confirms employees’ job insecurity fears amid AI integration

Business Strategy

By
Dexter Tilo

More than four in 10 managers in the United States are hoping that they can replace their employees with AI amid high-quality output from the technology, according to a new report.

The survey by Beautiful.ai among 3,000 managers found that 41% are hoping they can replace employees with cheaper AI tools in 2024.

Another 40% said they believe AI tools can replace multiple employees and the team would continue operating well.

This comes as 48% of managers said their business would benefit financially if a large number of employees are replaced with AI tools in 2024.

But employees shouldn’t just be worrying about their jobs – 45% of managers also said AI is an opportunity to lower the salaries of employees due to less human-powered work needed.

The findings validate fears among employees that they could be replaced by emerging technologies, such as artificial intelligence, in the near future.

This fear is not lost among managers, as 66% said their employees are afraid AI tools will make them less valuable at work in 2024, found Beautiful.ai.

Another 62% said they know employees are afraid that AI tools will eventually cost them their jobs.

AI’s threat to pay, jobs

But employees aren’t the only ones who are afraid, as 50% of managers said they are fearful that AI tools will result in lower pay for those in management positions.

Another 48% said AI tools will be a threat to their pay and will fuel wage declines across the country in 2024, found Beautiful.ai.

Previously, a report found that occupations more exposed to AI have “slightly worse wage growth.”

“For wages, the evidence is less clear and suggests neutral to slightly negative impacts,” the report read.

These findings come as 90% of managers introduced AI tools into their own workflows, with many commending its impact on productivity. According to the Beautiful.ai report, 64% are using the technology on a daily or weekly basis.

Using AI to boost productivity

The report also found that 66% of managers are adopting AI tools to either enhance worker productivity or improve efficiency.

For 64%, they said AI’s output and productivity are already equal to the level of experienced and expert managers. In fact, they believe it’s potentially better than any output produced by human managers altogether, according to the survey.

“Things like task and project management, content generation, and presentation design are obvious ways that managers can incorporate AI into their workflows — but the possibilities are endless and unique to each role, team, and company,” the report said.