TL;DR

A BearingPoint survey of over 1,000 global executives reveals that AI deployment is creating significant workforce overcapacity, with half reporting 10-20% redundancy in roles focused on routine analysis and process execution. By 2028, 45% of companies expect to manage 30-50% excess capacity.

The Scale of Workforce Transformation

New research from BearingPoint paints a stark picture of AI’s impact on workforce planning. The survey found that roles centred on routine analysis, process execution, transactional support, and repetitive knowledge work—including back-office operations, customer service, and entry-level financial or HR support—are becoming increasingly redundant.

IT departments, administration, and customer support functions are already high on the agenda for many C-level executives evaluating workforce restructuring. The study suggests AI will drive a sharp increase in workforce overcapacity by 2028 as productivity gains accelerate.

Rethinking Work Design

Alfred Obereder, partner at BearingPoint, emphasised that organisations must fundamentally reimagine how work is structured. “Rather than layering AI onto outdated functions, they are beginning to deconstruct traditional role definitions and rebuild them around human-agent collaboration,” he explained.

This transformation requires balancing overcapacity in legacy roles whilst simultaneously building skills in AI-critical domains. Workforce planning, talent development, and organisational design all need rethinking from the ground up.

Industry Context

The findings align with recent moves by major organisations. UK-based global law firm Clifford Chance announced a 10% reduction in business services staff at its London office, citing increased AI use in back-office functions. Consultancy PwC has also indicated AI may lead to fewer hires, whilst Amazon has told staff some roles will be replaced by bots.

However, a Yale study from October found little evidence of jobs being lost to AI so far in the US, with researchers noting no “discernible disruption” in the labour market since ChatGPT’s release.

Looking Forward

The divergence between executive expectations and current labour market data suggests organisations may be preparing for transformation faster than it is actually occurring. For UK SMEs, this presents both a challenge and opportunity—those who proactively redesign roles around human-AI collaboration may gain competitive advantage, whilst those who delay risk falling behind more agile competitors.

Source: The Register