Productivity gains and workforce transformation

GenAI is already showing significant productivity gains for businesses. According to the survey, more than half (56%) of CEOs report that GenAI has resulted in efficiencies in how employees use their time. Additionally, around one-third of CEOs report increased revenue (32%) and profitability (34%) from GenAI investments. This indicates that GenAI is becoming a crucial component of business strategies, helping to streamline operations and enhance workforce productivity.

Indeed, PwC's 2024 report with the World Economic Forum, Leveraging Generative AI for Job Augmentation and Workforce Productivity, highlights that employers expect GenAI to impact up to 40% of total working hours, driven by productivity gains, improved work quality, and enhanced customer and employee experiences. Most GenAI use cases are developed in day-to-day practice and are championed by employees themselves. Further research shows that sectors heavily exposed to AI are experiencing nearly five times higher growth in labour productivity. Additionally, 76% of workers expect GenAI to provide opportunities to learn new skills. The potential of GenAI is set to increase further with the advent of agentic AI, which promises significant efficiency and employee experience gains in various applications, such as employee contact centres.

To capture growth and value-creation potential, CEOs recognise the need to increase the scope and speed of their reinvention efforts. This involves embracing new technologies, business models and ways of working to stay competitive in a rapidly changing environment. The survey highlights that 69% of CEOs believe GenAI will require most of their workforce to develop new skills in the next three years. This underscores the importance of upskilling and reskilling employees to ensure they can effectively leverage new technologies and contribute to the organisation's reinvention efforts.

Businesses are undergoing a significant reconfiguration as they adapt to new market realities. This includes reshaping their workforce and operations to be more agile and resilient. The survey reveals that almost 40% of CEOs say their companies started to compete in new sectors in the last five years. Additionally, by a ratio of more than two to one, CEOs expect to increase rather than decrease (42% vs. 17%) headcount in the year ahead. This indicates a positive outlook for workforce expansion and the need for companies to be flexible and responsive to changing market demands.