Emerging Technology
How Is Deloitte Using AI To Avoid Mass Layoffs?
Updated on Tue, Dec 19, 2023
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Soon enough, it began finding applications in diverse business environments to reduce output time and costs. Additionally, it was available as and when needed. This witnessed a large number of businesses employ tools powered by the new technology.
However, after some time, it created a new conundrum for them. They needed to hire specialists who could operate the technology and tools that were backed by it. At the same time, there were fears of AI replacing employees.
A report by Goldman Sachs found that generative AI could affect around 300 million full-time jobs globally. This is one of the bigger issues faced by consulting firms, who were letting go of hundreds of employees despite hiring thousands of college graduates.
However, Deloitte, one of the biggest consulting firms in the world, is now turning to artificial intelligence to benefit employees.
So, what is Deloitte up to? Let’s explore!
How Is Deloitte Using AI To Retain Employees?
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Deloitte is using artificial intelligence to help find roles across the business that are more in demand, moving away from quieter roles.
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This is being done by evaluating their skills and mapping out plans that could aid in the transition.
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The idea is to help avoid mass layoffs in the future and moderate its hiring growth.
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In the last year, Deloitte hired around 130,000 new people but at the same time, also warned thousands of their employees across the US and UK that their jobs could be at risk as the company restructured certain areas.
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The reason? Generative AI came in to perform repetitive and time-consuming tasks.
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This becomes a bigger concern considering Deloitte’s workforce totals close to 460,000 after their run of hirings this year. In contrast, that's 3x the number it was around a decade ago when their revenue was about half of what it is today.
- Hence, the company is looking to leverage artificial intelligence to help manage the thousands of employees they add each year.
What Did Deloitte Say?
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Speaking about the move, Stevan Rolls, Global Chief Talent Officer at Deloitte, said, “It is obviously a great objective to be able to avoid large swings of hirings and layoffs … You could always be more efficient and effective about finding the right people.”
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Furthermore, Stevan Rolls also commented on the increase in the size of the company’s workforce accruing from the doubling of its revenue, saying, “Let’s imagine Deloitte was so successful and we doubled our size again, I’d be really worried about hiring a quarter of a million people a year … It might not be fewer, but it might be the same as we hire now.”
In fact, it’s not just Deloitte that’s embracing AI technology for this purpose, as its rivals too are looking to benefit employees in a similar fashion.
In addition to consulting firms, do you think other companies need to adopt AI to retain employees and avoid mass layoffs? Can AI be a game-changing technology for human resources?
Let us know in the comments below!
First published on Tue, Dec 19, 2023
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