AI to avoid layoffs – Despite hiring thousands of new graduates to meet new demands, consulting firms are having to lay off hundreds of employees. One of the largest firms in the field, Deloitte LLP, is looking to artificial intelligence (AI) for a solution.
According to a Bloomberg report, Deloitte is using artificial intelligence to assess the skills of its current employees and devise strategies to move them from less busy areas to more in demand roles. This is part of the firm’s larger strategy to use technology to control the rate of hiring over time.
Deloitte hired 130,000 new employees this year. However, in the midst of this hiring spree, the company had to notify thousands of its employees in the United States and the United Kingdom that their jobs might be made redundant due to a restructuring of certain business areas in response to a decrease in demand.
AI to avoid layoffs
“It is obviously a great goal to be able to avoid large swings of hirings and layoffs,” said Stevan Rolls, global chief talent officer at Deloitte. You can always be more efficient and effective in your search for the right people.”
Deloitte and other professional services firms have begun to use generative AI, which was made possible by the release of OpenAI’s ChatGPT, to eliminate repetitive and time-consuming tasks traditionally assigned to junior staff, such as document preparation for internal meetings.
These companies hope that their latest projects will help them better manage the thousands of new employees they hire each year.
Deloitte’s total headcount is approaching 460,000 following this year’s hiring spree. This is three times the number of new hires from a decade ago, when revenue was roughly half of what it is now.
Rolls continued, “Imagine Deloitte was so successful that we doubled our size again; I’d be very concerned about hiring a quarter-million people a year.” It may not be fewer, but it may be the same as we currently hire.”