CEO of Europe's largest HR company: AI will not wipe out millions of jobs

Artificial intelligence is changing how companies work, but it is not triggering a collapse in employment, according to Denis Machuel, CEO of staffing company Adecco Group. According to a report by the news agency Reuters, the chief executive of Europe's largest HR and staffing company cited employment data collected since the launch of OpenAI's ChatGPT and said that there is currently no evidence that AI is causing the large-scale job losses many have feared.Speaking to Reuters, Machuel said, “AI is bringing a massive evolution in the world of work, but a job apocalypse is not on the horizon. It's more about changing roles and tasks than eliminating jobs." He added that, based on available data, AI appears to be reshaping jobs rather than removing them altogether.Employment data does not indicate mass job lossesThe findings come from an Adecco study released this week, which examined labour market trends more than three years after ChatGPT's launch. The company cited data from the Paris-based Organisation for Economic Co-operation and Development (OECD), covering its 38 member countries, showing employment rates remain at record highs. At the same time, unemployment is close to historic lows.Machuel said previous technological shifts, including the adoption of steam power, electricity, information technology and the internet, transformed the nature of work without leading to widespread, permanent job destruction."With the data we have so far, there's no evidence we will have a different scenario with AI," he told Reuters.AI cited in layoffs, but other factors also at playThe comments come as several companies continue restructuring while increasing investment in artificial intelligence. Microsoft recently announced it would cut about 2.1% of its workforce, joining companies including HSBC, Amazon and Standard Chartered in reducing jobs while allocating more resources to AI initiatives.According to global outplacement firm Challenger, Gray & Christmas, employers have attributed nearly a quarter of job cuts in the United States this year to AI.However, Machuel told Reuters that some companies were using AI to justify layoffs that were actually driven by weaker business performance, restructuring efforts, or other operational challenges.Entry-level roles are changingMachuel acknowledged that some entry-level positions are disappearing as AI automates certain tasks. However, he said organisations cannot continue eliminating junior roles without affecting their long-term talent pipeline.Instead, he said companies should redesign these positions so AI complements employees rather than replacing them. He also stressed the need for upskilling and reskilling workers, alongside closer collaboration between businesses, governments and education systems to prepare employees for changing workplace requirements.Get the latest technology news and updates. Download the TOI App.