How CEOs Are Leveraging GenAI to Tackle Talent Shortages and Boost Productivity

In North America, many CEOs are addressing a tight labor market through three approaches: lowering university degree requirements, upskilling employees, and using generative AI (GenAI) to fill talent gaps.

According to a recent KPMG survey of CEOs, these three strategies are being actively pursued.

Eliminate certain university degree requirements for some roles.

Invest in employee skill development.

Deploy generative AI to bridge talent gaps.

KPMG CEO Paul Knopp stated that leaders are "actively investing in GenAI training and capability building to upskill employees" rather than merely replacing staff. He emphasized that workforce adoption will ultimately drive GenAI success.

Other research, such as an IDC report, highlights the potential of AI‑supported digital skill training as a top technology investment tied to business growth. IDC predicts that, driven by GenAI and pervasive automation, personalized technology development could boost productivity by $1 trillion by 2026.

Knopp also noted that CEOs see GenAI as a core competitive advantage and are committing long‑term investments to combine agility with new opportunities, aiming to accelerate enterprise‑wide deployment, reshape business models, and create new revenue streams.

GenAI and Employee Incentives

About 61% of CEOs say they encourage employees to use GenAI for automating routine tasks, helping manage workload and reduce stress.

Interestingly, 33% identify integration with existing processes and systems as the biggest AI‑related challenge, while 38% cite ethical concerns and 36% prioritize security and compliance.

Security and ethical issues, including data privacy and AI usage disclosure, are receiving heightened attention, as illustrated by the following chart:

66% of respondents believe their organizations have sufficiently invested in cybersecurity measures for enterprise‑wide GenAI deployment.

The report lists eight responsible AI initiatives already in place and eight more planned for 2024.

Will the Hybrid Model Persist?

Facing labor shortages, CEOs continue to prioritize mental health and burnout prevention. More than half cite four initiatives, including exploring new work arrangements such as a four‑day or 4.5‑day work week.

Last year, 62% of CEOs expected employees to work five days in the office; this year the figure fell to 34%, with only 3% reporting fully remote work.

Hybrid office models remain popular, with 46% of CEOs favoring hybrid arrangements and 34% expecting similar levels to 2023.

Knopp observes that employee preferences for flexibility persist, and CEOs increasingly recognize that hybrid work will continue.

According to a Gallup poll cited by CNN, 77% of U.S. workers say a four‑day work week would positively affect their well‑being, with 46% describing the impact as "very positive."

Knopp cautions that a four‑day week is still experimental and may take years to become widespread, but predicts that generative AI will make a shorter work week more feasible.

Conclusion

Artificial intelligence is already reshaping executive thinking, influencing founders and senior leaders' ambitions, hopes, and fears. As AI continues to evolve, its impact on the future of work remains a central question.