Six in ten business owners expect AI to reduce workforce requirements within five years
Six in ten (60%) UK business owners expect artificial intelligence (AI) to reduce the number of employees their business requires over the next five years, according to new research from professional services group S&W.
The findings suggest AI is already reshaping workforce planning, with almost six in ten (59%) business owners surveyed saying the technology has enabled their business to reduce headcounts or hiring.
At the same time, businesses are overwhelmingly positive about the impact AI is having on their organisations. More than seven in ten (71%) say AI has increased productivity or efficiency, while 73% report that it has helped them develop new products or services. Just over two-thirds (67%) say their business has seen a significant return on investment from AI technology.
The research, which was conducted by Censuswide among 500 UK business owners at companies with annual turnovers ranging from £500m or more down to £5m, found that AI adoption is now widespread. Seven in ten (70%) surveyed say they have made significant investments in AI technologies, while almost three-quarters (74%1) report significant use of AI tools across their workforce.
Confidence in the technology remains high, with more than four in five (81%) surveyed planning to increase their spending on AI over the next year, underlining its growing importance in driving business growth, innovation and competitiveness.
Dhiresh Patel, partner and leader of S&W’s technology strategy practice commented: “AI is becoming increasingly embedded in the day-to-day operations of many businesses, and our research shows it is delivering measurable benefits, including higher productivity and greater innovation. But adoption without control is a false economy. As uptake accelerates, business owners need to rethink not just the skills and capabilities they will need in the years ahead, but the governance frameworks, guardrails and cost oversight that make AI use sustainable rather than risky.
“The organisations that thrive will not simply be the ones that adopt AI fastest. They will be the ones that pair investment in AI with investment in people and skills, and back both with strong governance, clear guardrails on how the technology is used, and tight cost controls. Get that balance right, and AI becomes a durable source of productivity. Get it wrong, and the risks, financial, operational and reputational, quickly outweigh the gains.”