AI and the future job market

Since the introduction of ChatGPT in November 2022, the conversation around artificial intelligence (AI) has intensified within business circles. Generative AI, especially, has become a transformative force, poised to revolutionize our approach to work.

While predictions indicate that AI will bring the automation of millions of jobs worldwide.

In our acrticle we would like to share some information on but how will AI/ Automation impact the future work market?

1. AI as a Catalyst for Job Creation: We came across information from World Economic Forum indicates that businesses are optimistic about AI's potential to create jobs in the next five years. Nearly half of the surveyed companies foresee AI adoption leading to job creation, surpassing those anticipating job displacement. Within technology adoption, big data, cloud computing and AI feature highly on likelihood of adoption. More than 75% of companies are looking to adopt these technologies in the next five years. The data also shows the impact of the digitalization of commerce and trade. Digital platforms and apps are the technologies most likely to be adopted by the organizations surveyed, with 86% of companies expecting to incorporate them into their operations in the next five years. E-commerce and digital trade are expected to be adopted by 75% of businesses. The second-ranked technology encompasses education and workforce technologies, with 81% of companies looking to adopt these technologies by 2027. The adoption of robots, power storage technology and distributed ledger technologies rank lower on the list.
2. The Growing Demand for AI Skills: The demand for AI and big data skills has surged to the forefront of companies' priorities for skill development. The skills that companies report to be increasing in importance the fastest are not always reflected in corporate upskilling strategies. Beyond the top-ranked cognitive skills are two skills which companies prioritize much more highly than would appear according to their current importance to their workforce: AI and big data as well as leadership and social influence. Companies rank AI and big data 12 places higher in their skills strategies than in their evaluation of core skills, and report that they will invest an estimated 9% of their reskilling efforts in it – a greater proportion than the more highly-ranked creative thinking, indicating that though AI and big data is part of fewer strategies, it tends to be a more important element when it is included. Leadership and social influence ranks five places higher than suggested by its current importance and is the highest ranked attitude. Workforce development is most commonly considered to be the responsibility of workers and managers, with 27% of training expected to be furnished by on-the-job training and coaching, ahead of the 23% by internal training departments and the 16% by employer-sponsored apprenticeships. To close skills gaps, respondents expect to reject external training solutions in favour of company-led initiatives.
3. AI and Automation will impact average wages. As the mix of occupations changes, certain jobs with middle-range wages, such as those in manufacturing or accounting, are likely to decrease due to automation. Conversely, high-wage jobs, particularly in high-skill medical and tech professions, will see growth. The risk is that automation could exacerbate wage polarization, income inequality, and the lack of income advancement that has characterized the past decade across advanced economies, stoking social, and political tensions.

As AI continues to evolve, its impact on the future of work will become increasingly apparent. While automation and augmentation are on the horizon, human workers are not being marginalized. Instead, companies are doubling down on investments in learning and training initiatives to ensure their workforce remains adept in an AI-driven landscape.

Written by Karolina Wonchala at Simply Talented .

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