Source : INDIA TODAY NEWS
Workday has found that artificial intelligence is changing the way companies think about jobs, but most business leaders do not expect AI to lead to widespread workforce cuts. According to the company’s latest Global Workforce Report, 28 per cent of business leaders expect AI to reduce headcount, while 40 per cent believe the technology will help them get more out of their existing employees.
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The findings come as companies are also becoming more selective about the AI skills they want from workers. The report comes a few days after Workday announced plans to cut around 500 jobs as part of a restructuring. The report suggests that for many employees, the bigger change may be in the work they are already doing rather than whether they keep their jobs.
“Employees may not be changing jobs, but their jobs are changing around them,” said Phil Willburn, vice president, people systems, intelligence & support, Workday. “Leaders need to be honest about what’s different and give people a way to keep up.”
Companies want people who can build with AI
Workday’s analysis of job postings from more than 550 employers shows that demand for basic AI skills is already falling. Skills such as simple prompting became increasingly common through late 2025, reached a peak in January 2026 and then dropped 25 per cent in the months that followed.
At the same time, companies are looking for workers with more advanced AI abilities. Demand for skills related to building AI tools, automating workflows and AI engineering increased 51 per cent between September 2025 and July 2026. This means knowing how to use an AI chatbot may no longer be enough for some jobs. Employers are increasingly looking for people who can use AI to build tools, automate tasks and solve business problems.
Workers, however, say they are not always getting enough support to make that transition. In a survey of 6,000 full-time employees, 79 per cent said they know which skills they need to succeed, but only 66 per cent said their employer helps them develop those skills.
AI is also making some workers question the value of their existing skills. Among employees who use AI for nearly all of their work, 62 per cent said they believe the technology will make their current skills less valuable. Still, 76 per cent of these heavy AI users expect AI to create new career opportunities.
Study reveals one major problem faced by employees
The report also points to another problem for employees – moving up or changing roles within the same company is becoming more difficult. Internal moves fell at 57 per cent of employers compared with the previous year, while promotion rates remained largely unchanged. Employees trying to move internally cited paused hiring, managers not supporting their applications and concerns about unfair selection processes.
At the same time, competition for jobs outside companies is increasing. Workday found that 84% of job seekers used AI during their job search. The median number of applicants for each filled position rose to 69, compared with 58 a year earlier.
Despite the larger number of applications, the average time taken to fill a position remained around 60 days. Companies said vacancies often remain open because applicants do not have the required skills or because salary, location and flexibility do not match expectations.
“The question isn’t just whether someone has done the exact job before,” Willburn said. “It’s whether they can learn fast enough to solve the next problem.”
For employees, the report paints a mixed picture. Voluntary turnover is around 16 per cent a year, and about 70 per cent of employees remain with the same company two years later. But staying does not necessarily mean workers are satisfied.
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SOURCE :- TIMES OF INDIA
