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Tech companies to significantly grow digital labor and human workforce

Staff Writer |
Technology companies plan to ramp up deployment of automation and machine learning across several functions.

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They will also increase their human workforce at least 6 percent over the next three years, according to a survey of U.S. tech CEOs by KPMG.

The co-existence between human employees and cognitive systems is creating a new class of digital labor that can enhance human skills and expertise, allowing employees to innovate constantly.

About three-fourths of U.S. technology industry CEOs believe that automation and machine learning are likely to replace at least five percent of their manufacturing, technology, sales and marketing workforce over the next three years.

At the same time, more than half (55 percent) of the 138 U.S. tech chief executives surveyed expect their company's headcount to grow at least six percent.

Tech industry CEOs point to several strategic priorities in the coming 36 months, led by digitization of their business, stronger client focus, implementing disruptive technology, minimizing cyber security risk, and talent development.

To accelerate the execution of their strategies, they are hiring new talent (60 percent) and forming new partnerships and alliances (49 percent). And 8 out of 10 tech CEOs see growth through partnerships or collaboration with other companies as the way to drive shareholder value for the next three years.

Underlying their strategic priorities will be a continued focus on innovation. Almost half of the U.S. tech CEOs describe their approach to innovation as accelerated.

And 80 percent said they use disruptive technologies to improve products and services.

Innovation and integration of disruptive technologies helps address tech CEO's top concern (93 percent) - product relevancy three years from now. Also among the top three concerns are the impact of global economic forces on their business and how millennials and their differing wants/needs will change their business.


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