A comprehensive international study on the impact of AI on businesses reveals that executives are optimistic about the technology’s potential to drive growth and productivity. The study, which surveyed nearly 6,000 executives across four countries, found that while AI has had a modest impact on productivity and employment over the past three years, executives expect stronger effects to take place over the next three years.

According to the study, around 69% of firms are already utilizing some form of AI, with the most common applications being LLM-based text generation, data processing via machine learning, and visual content creation. The study also found that executives expect AI to drive a 1.4% increase in productivity and a 0.8% rise in output over the next three years, with US executives projecting a 2.25% productivity gain.

However, the study also noted that executives expect a modest 0.7% reduction in headcount across the four countries over the same period, with around two-thirds of this adjustment expected to come through slower hiring rather than outright redundancies. This suggests a gradual reallocation of roles rather than abrupt terminations.

The study highlights a divergence in expectations between executives and employees, with employees expecting AI to increase employment at their firms by 0.5% over the next three years, while US executives expect a 1.2% reduction. Employees also foresee productivity gains of 0.92%, below the executive forecast of 2.25%.

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