Plot twist: Consulting firm Deloitte is reportedly using AI to prevent layoffs

August 2024 ยท 3 minute read

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The rapid advances in AI will bring about significant disruptions to the labor market. 

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The bad news is that some workers are going to see their jobs and skills replaced by automation. The good news, though, is that AI could also help workers move into roles that are more in-demand. 

And major consulting firms like Deloitte are doing exactly that. The firm is deploying AI technology to assess its current employees' skills and figure out how to move them into areas of the business that are more promising, according to Bloomberg. The firm is essentially making a bet that AI will not only help it avoid mass layoffs, but also moderate its hiring growth in the coming years, Bloomberg reported.  

"It is obviously a great objective to be able to avoid large swings of hirings and layoffs," Stevan Rolls, global chief talent officer at Deloitte, told the outlet. And the firm has already started using generative AI tools to eliminate repetitive work, Bloomberg said. The increase in productivity from AI could increase may boost S&P 500 profits by 30% or more, according to a Goldman Sachs strategist.

Deloitte's move to retain its employees using AI comes after the company swelled its ranks in the years after the pandemic. The firm brought on 130,000 new hires this year, after 2022 saw the highest rate of new hire growth in a decade, according to figures from Bloomberg. Meanwhile, revenue growth just hasn't kept in pace, per Bloomberg. 

Deloitte is also among several consulting firms figuring out how to deal with all their new hires, especially as business remains slow amid an uncertain economy. At firms like Bain, Boston Consulting Group, and McKinsey, new MBA hires have had much work and are anxious about all the idle time they have between projects. New college graduates too have seen their start dates pushed back by several months amid the tough business climate.

Are you a consultant who is seeing your role changed by AI? We want to hear from you! Contact reporter Lakshmi Varanasi at lvaranasi@insider.com. 

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