Artificial Intelligence (AI) is set to dominate the discussions at next week’s World Economic Forum (WEF) Annual Meeting in Davos, as global leaders contend with its transformational effects on employment, economies, and communities.
The WEF’s Future of Jobs Report 2025, published last week, reveals that AI is significantly altering international labor markets, generating opportunities while also presenting serious challenges.
Over 1,000 enterprises across the globe contributed data, indicating that the skills gap remains the primary obstacle to corporate transformation. Nearly 40% of skills demanded by employers are predicted to change, and 63% of employers already identify this as their main challenge.
The highest demand growth will be for technology-related skills in AI, big data, and cybersecurity; however, interpersonal skills such as creative thinking, adaptability, resilience, and agility will continue to be essential.
“An integration of both types of skills will become increasingly vital in a rapidly evolving job market,” the report observes.
Ironically, employment focused on human interactions, such as frontline positions and in vital sectors like healthcare and education, is projected to experience the most substantial job growth by 2030. Concurrently, advancements in AI and renewable energy are transforming the labor market, leading to a rise in demand for specialized roles while reducing opportunities in areas like graphic design.
A subsequent report unveiled on Wednesday by the WEF, the Global Risks Report 2025, alongside the AI Radar report released by Boston Consulting Group (BCG) the same day, indicates that AI will have a significant role in managing global economic, technological, and workforce changes this year.
“In conversations with CEOs, it’s evident that they are emphasizing AI to boost productivity,” noted Christoph Schweizer, CEO of BCG, during a media briefing this week. According to the AI Radar, 75% of executives worldwide place AI among their top three strategic priorities, with one-third of organizations intending to invest over $25 million in AI projects within the next year.
Nevertheless, the report indicates that only 25% of companies realize substantial returns from their AI investments, illustrating the divide between aspirations and actual results. Successful firms concentrate on a select number of targeted applications, scaling swiftly and deeply incorporating AI into their operations, achieving returns on investment that significantly surpass their competitors.
In Africa, BCG reports that 35% of companies are not defining or tracking any financial Key Performance Indicators (KPIs) related to AI value generation. Sixty-two percent of these companies exhibit a lack of maturity in effectively managing organizational changes associated with AI, and 68% have reported difficulties in hiring AI experts and enhancing the skills of their current workforce.
There are several positive highlights in the WEF jobs report. Globally, only 7% of executives expect a decrease in headcount due to AI automation. However, nearly 40% of necessary job skills are anticipated to evolve by 2030. The report emphasizes that reskilling and upskilling initiatives are insufficient, with less than one-third of organizations having trained even 25% of their personnel.
In Africa, 31% of companies are at the forefront of global initiatives in AI and GenAI skill enhancement, yet significant barriers persist.
“African executives view talent and AI as working in tandem,” the report indicates, with 66% of respondents envisioning roles that involve collaboration between humans and AI.
The finding that is likely to bring the most reassurance to the workforce is that AI is fostering the emergence of new positions in technology, data science, and renewable energy.
This must be juxtaposed with the awareness that autonomous AI agents, able to complete objectives with minimal human intervention, are becoming more prevalent, with 67% of executives contemplating their deployment. Notably, 65% of companies in Africa are investigating or implementing AI agents, illustrating regional optimism regarding the technology’s potential.
This is reflected in a consistent stream of public relations announcements from South African firms on the subject, such as local process automation enterprise Clevva declaring 2025 as the start of the “agentic era.”
The swift adoption of AI brings certain risks. Data privacy, cybersecurity, and compliance with regulations are top worries for 66% of executives, according to the Global Risks Report. The groundbreaking generative capabilities of AI have also heightened threats like misinformation and cyberattacks.
Peter Giger, group chief risk officer at Zurich Insurance Group, cautioned: “The biggest risk is to remain passive and claim there’s nothing that can be done. It’s not too late.”
* Arthur Goldstuck is CEO of World Wide Worx and editor-in-chief of Gadget.co.za. Follow him on Bluesky at @art2gee.bsky.social.