Over third of businesses yet to model AI impact - Ibec

More than a third of employers have yet to model the impact of AI on their workforce, according to new research from business group Ibec.

The latest Talent Trends Report shows that just 4% of businesses believe AI will lead to a significant reduction in overall headcount.

The research found that 36% of respondents have yet to formally model the impact on workforce structures.

The report also shows that 61% of HR leaders say their company does not plan to change its hybrid policies next year.

Meanwhile, the implementation of the EU Pay Transparency Directive was identified as the single most impactful factor affecting HR operations, cited by 68% of HR leaders as compliance deadlines approach.

Executive Director of Employer Relations at Ibec Maeve McElwee said there is genuine confidence that while some roles may be changed by AI, the narrative of job displacement does not currently reflect what HR leaders are seeing.

"What we are seeing from the feedback is that the challenge for businesses lies in gaining a better understanding of how they capture and measure the productivity benefits of AI across their business operations," Ms McElwee said.

She added that HR leaders have noted a stabilisation in how workplaces manage hybrid and flexible working compared to four or five years ago.

"While off-site work is not feasible for every workplace, our report shows that where it is possible, the vast majority of companies recognise the productivity and employee engagement benefits, and do not plan to change policies next year, further underlining this stability," Ms McElwee said.

The report will be launched at Ibec's HR Leadership Summit and is based on a survey of 319 HR professionals.