Executives think generative artificial intelligence will deliver gains over 30 per cent

The Mercer 2024 Global Talent Trends Study, released March 6, shows a notable divergence between what c-suite executives think compared to human resources’ views on what will carry businesses forward in 2024.

The survey of 12,000 executives, human resources leaders, employees and investors globally found that inflation, currency and capital concerns were reported by 52 per cent of executives as influencing their three-year plans. This is followed very closely by digital acceleration, including the adoption of generative artificial intelligence (AI), cited by 46 per cent as a concern. 

Rapid growth in capabilities 

“The rapid growth in generative AI capabilities has raised hopes for workforce productivity gains, with 36 per cent of Canadian executives (compared to 40 per cent globally) predicting AI will deliver gains of more than 30 per cent. Yet three in five or 61 per cent believe technology is advancing faster than their firms can retrain workers, and only one in three believe they can meet this year’s demand with their current talent model,” the researchers state in an announcement about the study’s release.

“Raising productivity through AI is top of mind for executives but the answer does not lie in technology alone. Greater workforce productivity requires intentional, human-centric work design,” warns Kate Bravery, Mercer’s global talent advisory leader and author of the study.

Less optimistic 

While 57 per cent of those executives worry their companies are not doing enough to inspire workers to adopt new technologies, the study further notes that human resources leaders are not as optimistic. Only 28 per cent were very confident they can make human-machine teaming a success.

The report also looks at employee trust, experience and engagement. It adds that 64 per cent of executives say their businesses can withstand unforeseen challenges – up notably from 40 per cent who said the same thing two years ago.

“Near-term concerns such as inflation heavily influence executives’ three-year plans, however longer-term risks, such as cyber and climate may not be getting the necessary attention they deserve. The top issues shaping Canadian executives’ three-year plans are digital acceleration, a rise of alternative flexible or distributive work models, inflation and extreme weather and natural disasters,” they write.