Artificial intelligence (AI) accounts for just 1% of job losses worldwide at present, with minimal overall impact expected by 2028, according to global tech research firm Gartner Inc.
However, its presence is already influencing hiring trends, particularly at the junior level, where companies are exercising caution.
By 2030, it is projected that 75% of IT work will be performed by people augmented with AI, while the remaining 25% will be handled entirely by AI, signalling a future where no IT tasks are performed without the involvement of AI, according to Gartner.
Organisations need to identify new value-enhancing IT work beyond traditional projects, such as expanding into new markets or creating new products.
“AI and human readiness are the key to unlocking the real value of AI into business. The reality is, not all AI is ready to deliver value — and people are even less ready to capture it,” said Alicia Mullery, vice-president at Gartner.
AI readiness is whether it can solve specific problems and deliver results for use cases. Human readiness means having the right people and organisational structures in place to use AI effectively and maintain the value it brings.
Organisations are often “halfway up AI readiness, but only one quarter of the way along with human readiness,” making value hard to achieve due to this imbalance.
News headlines about AI-driven job losses are often misleading as Gartner sees only 1% of headcount reductions are directly due to AI today, and AI will create more jobs than it destroys.
Most organisations (non-tech) are focusing on a “financial remix” rather than a “talent remix” by using AI to cut backlogs, reduce fraud, or grow revenue through human empathy.
AI skills are about making humans better, whether that be through becoming a better motivator, a better thinker, or a better communicator.
Organisations can focus on “context engineering” (giving AI a frame of reference to build better answers, moving constraints out of prompts and into the system) and build a discipline around it.
Daryl Plummer, a distinguished vice-president analyst at Gartner, said business needs to scan for skills atrophy (such as losing coding skills due to AI reliance). Institutions should conduct periodic reviews to prevent the erosion of critical skills such as security and critical thinking.
In addition, business needs to invest in change management programmes specifically for managers, including conversation guides and role-play exercises.
Ms Mullery said most AI projects still struggle to deliver value. Gartner reports only a one in five chance of achieving a return on investment (ROI), and a one in 50 chance of achieving true transformation in 2025.
AI is shifting from hype to disappointment as organisations face the reality of implementation challenges.
Accuracy remains a key issue. Generative AI tools can have up to a 25% error rate, and most companies do not formally track it.
To unlock AI’s value, companies must push for AI agents that act like experts — handling complex tasks such as negotiations or presentations.
AI is also expensive beyond the upfront cost. The average launch is US$1.9 million, but each tool brings 10 hidden costs.
Choosing the right AI vendor is critical in terms of data, model, ethics, and location. Finally, AI sovereignty is vital. Companies must control their models and outputs to avoid being locked in.
Using techniques such as data tokenisation and model distillation can help maintain control and independence.
Transcending limitations
Mr Plummer said that when both AI and people are ready, organisations can “transcend their organisational and industry limitations”. This leads to significant ROI opportunities and “shockwaves” of value.
“We can start by addressing the ‘brain drain problem’ by training AI on the personal knowledge of retiring employees,” said Mr Plummer.
He added that certain revenue streams, such as from translation services, basic legal services, and video/image editing, are expected to be forced to zero as AI makes them free.
“Business needs to begin creating a list of at-risk revenue streams to prepare for this shockwave,” he added.
In addition, AI automation will gradually lead to companies becoming more autonomous. For example, AI can negotiate business-to-business deals.
As business becomes more autonomous, firms should hire “smart contracts managers” to oversee AI-driven negotiations and living contracts.
