That means that 1.4 billion of the 3.4 billion people in the global workforce,  will have to retrain to acquire new skills.

The most effected will be entry-level employees – 77 per cent of executive respondents say entry-level positions are already seeing the effects of generative AI and that will intensify in the next few years. Only 22 per cent of respondents report the same for executive or senior management roles.

More than  87 per cent of executives surveyed believe employees are more likely to be augmented than replaced by generative AI. That varies across functions — 97 per cent of executives think employees in procurement are more likely to be augmented than replaced, compared to 93 per cent for employees in risk and compliance, 93 per cent for finance, 77 per cent for customer service and 73 per cent for marketing.

According to IBM IBV research, tech adopters who successfully reskill to adapt "technology-driven job changes report a revenue growth rate premium of 15 per cent on average," and those who focus on AI "see a 36% higher revenue growth rate than their peers."

"AI won't replace people — but people who use AI will replace people who don't," said IBM in the report.

The new skill paradigm shifts technical skills typically prioritised, such as proficiency in STEM, which was the most critical skill in 2016, to the least priority in 2023.

 The reason is that now tools like ChatGPT allow workers to do more with less knowledge, as noted by the report. Now there is a bigger emphasis on people skills such as team management, the ability to work effectively in team environments, the ability to communicate effectively, and the willingness to be adaptable to change, which all shifted to top the most critical skills required of the workforce in 2023.