How AI will hit the job market

AI technology has the potential to be one of the most disruptive forces ever to hit the economy. Will it change how you work?

Over the years, advances in Artificial Intelligence (AI) and Automation have made it almost certain that our world will go through a transformation. The debate now is whether these changes will take place but on when, how, and where the impact of AI will hit hardest. Through this post, I’ll try and explore both optimistic and pessimistic views of artificial intelligence, automation, job loss, and the future.

There are questions about the impact of artificial intelligence and automation. I agree that these are critical for us to consider. While technology isn’t necessarily good or evil, in the hands of humans, technology has a great capacity for both. I would certainly prefer the good over the evil, and that will be an outcome on the choices that we make today.

Technology drives significant changes in our society. For this valid reason, we’re experiencing concern and fear— about the outcomes of an AI takeover and for good reason. But the implementation of AI has massive implications beyond the tech world. In particular, it will likely lead to a transformation in the job market in ways that seem impossible to us right now.

1. AI will augment many jobs

If you have trouble imagining how AI might assist you at work without taking over your job, consider something like Grammarly. This feature offers word and phrase suggestions to users as they compile their content This makes the process much easier and quicker and with fewer grammatical mistakes. It's simply an AI augmentation tool that is already finding users around the world.

Indeed, AI has already started having an impact on the everyday lives of millions of people who perform complicated tasks and, in some cases, helping people execute tasks in a manner better than ever before.

It's just the beginning and its already starting to look impressive. Analysts at research and advisory firm Gartner estimate that by 2022 "one in five workers engaged in mostly nonroutine tasks will rely on AI to do a job." In other words, just a few years from now, AI tools could be compiling and composing pesky weekly status reports freeing up workers for more important -- and less automated -- tasks.

Unfortunately, I like to believe that most of these calamitous warnings of job losses confuse AI with automation. This overshadows the greatest AI benefit -- AI augmentation -- a combination of human and artificial intelligence, where both complement each other.

It is estimated that by 2021, AI augmentation will generate $2.9 trillion in business value annually.

2. AI will eliminate jobs -- but create even more new ones

Much of the discussion surrounding AI revolves around the degree to which AI tools will be able to replace workers. The speculative nature of these arguments has led many people to believe that eventually, AI systems will possibly and quickly put most people out of work. Many professions could go off the block altogether.

This has to lead us to the second stage of this evolving debate: If AI is going to take over much of human work, how should we re-create the idea of working humans? Another question up on the list is how can we adapt the economy to these new realities?

However, research indicates that while AI will eliminate many jobs, it will end up creating even more.

According to Gartner, while at this point AI is driving a net loss of jobs, by 2020, that will reverse. In 2020, nearly 1.8 million jobs will be eliminated by AI, but 2.3 million new jobs will be created. And by 2025, AI will create 2 million net new jobs.

3. Expect serious disruptions for the middle-income  

Not all of the predictions for AI are so bloomy, and for a valid reason. One concern that is startling experts is that as AI begins to puts jobs out of existence, there will be major gaps to fill between workers losing their jobs, and ones that are being trained for the new jobs being created.

So, it is estimated that we will see growth in high-wage occupations and similar growth in the lowest-wage occupations. But the occupations in the middle of this income distribution will come on the chopping board. That's may be problematic for some.

The takeaway

There's no way to slow down the spread of AI. Tech companies are heavily investing in it, and it is estimated that artificial intelligence could add $15.7 trillion to the global economy by 2030.

With artificial intelligence on the verge of transforming the job market and the economy, it's time for all to start paying close attention to massive changes this technology will bring.