AI Adoption To Bring Down Labour Cost of Companies By a Quarter in Five Years
Almost 85 per cent of Indian HR leaders agree the workforce will be made up of humans and agents in the next five years, though 88 per cent say their organizations have yet to implement agentic AI
Chennai: Artificial Intelligence adoption by organisations is expected to increase multi-fold in next two years and the labour costs can be brought down by a quarter with AI adoption in next five years, finds a study.
A survey of 200 human resource executives of different companies by Salesforce found that 92 per cent of them understand that integrating digital labour alongside their existing workforce will be a critical part of their job.
Almost 85 per cent of Indian HR leaders agree the workforce will be made up of humans and agents in the next five years, though 88 per cent say their organizations have yet to implement agentic AI.
However, they project a 383 per cent growth in AI agent adoption within their organizations by 2027 from the current adoption of 12 per cent to 58 per cent in two years.
Chief Human Resource Officers in India expect to redeploy nearly a quarter (24.7 per cent) of their workforce as their organizations implement and embrace digital labour. Almost 93 per cent of CHROs believe AI agents/digital labor will empower them to reassign employees to new, more relevant roles.
Once agentic AI is fully implemented, they expect an average employee productivity gain of 41.7 per cent and a 26.2 per cent reduction in labour costs.
CHROs believe redeployment is the more cost-effective approach compared to hiring outside the business for new roles. They are reskilling 15 per cent of the workforce and plan to reskill 73 per cent employees for roles with better future opportunities.
According to them, employees don’t yet understand how digital labour will impact their work.
“We’re in the midst of a once-in-a-lifetime transformation of work with digital labour that is unlocking new levels of productivity, autonomy, and agency at a speed never before thought possible,” said Nathalie Scardino, President and Chief People Officer at Salesforce. “Every industry must redesign jobs, reskill, and redeploy talent — and every employee will need to learn new human, agent, and business skills to thrive in the digital labour revolution,” he added.
