Artificial Intelligence and its Implication for Future Jobs

The rapid progress in AI poses a great threat to numerous jobs in the coming years. OpenAI's release of ChatGPT in November 2022 sparked discussions about the potential replacement of content creation roles. Despite this, the commercialization of generative AI has reshaped work environments and job roles. Recently, there has been a surge in the emergence of Devin , dubbed as the "first AI software engineer," potentially displacing positions held by junior engineers. Jobs in sectors such as customer service, regulatory compliance, and clerical work, which involve routine tasks and data collection, are already facing rapid automation worldwide.

It’s essential to understand the nature of jobs. The low-skilled jobs such as assembly line work and data entry jobs are most likely to be entirely replaced within the next few years. To navigate through this impact of AI automation on workers, they need to be trained and educated to be able to become a part of more challenging roles in the workforce. Some categories of jobs that come under the fields of manufacturing, transportation, and customer service are similarly, at the highest risk of becoming completely automated, requiring almost no manual input from human workers.

On the other side, some experts predict that there might be an increase in some jobs including high-salary jobs. The CEO of Randstad , the global leader in the HR services industry, emphasizes that AI integration into jobs can actually increase salaries by allowing employees to focus on higher-value tasks. AI boosts productivity, enabling workers to spend more time with clients and colleagues while exploring new opportunities. While AI has significant capabilities, it cannot replace humans entirely, leaving room for employees to contribute in unique ways beyond AI's capabilities. AI complements human work, enhancing productivity and creating opportunities for value-added contributions.?

Similar to other technological advancements in the past such as the industrial technology discoveries of the 1930s or the IT revolution in the early 1960s, many predictions currently suggest that a majority of people will eventually become jobless and secluded. Such as a recent IMF report suggested that 40% of jobs around the world will be affected by AI. In advanced economies, that will rise to 60% of jobs affected by machine learning, with about half being negatively impacted. The losers will face lower salaries and reduced hiring, and some jobs will disappear altogether.

However, historically speaking, predictions forecasting a decrease in future job opportunities over the past two centuries have always been false. While AI represents a unique disruption, it's accurate to anticipate that new advancements also bring forth new avenues of work. The transition may not necessarily bring forth joblessness but rather a shift from one sector to another for the workforce. As Satya Nadella , CEO of Microsoft said in an interview with CNBC in 2022, "I don’t think we need to be worried about mass job displacement. We need to focus on how we are going to reskill people." This quote underscores the importance of reskilling individuals to adapt to the changing job landscape influenced by AI.

Furthermore, trust and scalability issues will slow down the rate of job displacement by AI. Even if AI eventually replaces human workers, the transition will take time. As Randstad CEO Sander van't Noordende explained on CNBC's Squawk Box Europe , achieving widespread AI integration responsibly will require patience and careful implementation. He said: “For AI to get absorbed at scale, get implemented at scale will take a while,” “We are sort of at the peak of the hype cycle now, you know, everybody’s excited, but it takes more to get AI at scale in a responsible way, and that will take time.”

In summary, while AI presents significant challenges to the job market, historical patterns, and worldwide social disparities suggest predictions of widespread job loss may be overstated. Instead, AI could usher in a transformation of work, creating new opportunities alongside displacing some traditional roles. The gradual integration of AI at scale allows for adjustments and mitigates immediate job displacement. Investing in education and training is crucial to empower workers to adapt to changing job requirements and capitalize on AI-driven innovation, ensuring a future where technology enhances human potential.

At Liquid Technologies , we not only understand these rapid advancements but also prioritize the optimal utilization of AI and human talents. With an empathetic and research-based approach, we are committed to training our workforce for tech-disruptive changes and the widespread adoption of AI across various departments. Additionally, our consultancy services related to AI help uncover your organization's specific needs, enabling the deployment of the most suitable mechanisms for your operations.