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Only 7% of global executives think AI adoption will lead to job losses: BCG report

One in three companies say they will invest more than $25 million on AI in 2025. India leads the pack, with 80% firms identifying and adopting AI as a core strategic priority against the global average of 75%

January 15, 2025 / 15:51 IST
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Around 93 percent of the top global executives think artificial intelligence (AI) is unlikely to reduce headcount at their companies in the near future, Boston Consulting Group’s second edition of AI Radar survey has found.

Around 68 percent of the surveyed executives expect to maintain their current workforce size, focusing on enhanced productivity and upskilling existing talent to meet AI demands. The finding contradicts the fact, that though up from 6 percent to 29 percent in 2024, still only some employees got AI trained and upskilled last year.

A small group of executives also expects AI to reshape the workforce by introducing new roles to replace redundant ones.

Sylvain Duranton, global leader of BCG X said, “Successful leaders adopt the 10-20-70 framework to unlock AI’s business potential, allocating 70 percent of their efforts to transforming people, processes, and culture; 20 percent to data and technology; and just 10 percent to algorithms.”

“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.”

The BCG report surveyed 1,803 C-level executives across 19 markets and 12 industries.

One in every three companies surveyed are planning to spend more than $25 million on AI in 2025. India is leading the pack, with 80 percent companies identifying and adopting AI as a core strategic priority compared to the global average of 75 percent.

“This aligns with the nation's ambitious digital transformation agenda. To add to this context, 69 percent of Indian firms plan to increase their tech investments in 2025, with one-third committing over $25 million to AI initiatives. Making India one of the top spenders globally on AI,” said Nipun Kalra, India Leader, BCG X, BCG.

“Eighty-one percent of Indian companies acknowledge the need for substantial improvements in AI-related cybersecurity measures, which is critical given the increasing complexity of AI applications.”

Indian companies are also embracing AI for high-impact applications, with focus on reshaping workflows and inventing new business models, positioning India as a driver of innovation in this space.

Still early days

A crucial finding of the report, however, is that majority of the companies are yet to see meaningful value from their AI initiatives.

BCG chief executive officer Christoph Schweizer said while 75 percent of executives rank AI as a top three strategic priority, only a quarter report meaningful value from their 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,” he said.

Next big AI trends

In 2025, the companies surveyed are betting big on AI agents, or "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 percent of executives are considering autonomous agents as part of their AI transformation, with optimism around agents consistent across geographies," the report said.

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Moneycontrol News
first published: Jan 15, 2025 03:49 pm

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