AI will reshape the workforce, making it more efficient and creating better opportunities for human talent
“AI is coming for our jobs!"
"Our livelihoods are at risk!”
“The robots are taking over!"
With countless media headlines echoing a rising fear against what is being viewed as one of the most transformational technologies of our times, it is hard not to give in to the haunting melody of doubt and let it play on repeat in our minds.
But is this pervasive anxiety truly an accurate reflection of our reality, or is it a product of sensationalized media narratives? Here we will dissect the evidence.
In today’s workplace, the fear of AI-led job displacement is becoming increasingly common among employees of all departments. This sentiment is not just noise, it has a strong foothold in public perception. But before we tackle the fear, it is important to consider where it stems from.
The key to harnessing insights from studies and surveys is to interpret them accurately. Often, alarming headlines mask a more nuanced reality that gets lost in translation. Take, for instance, the 2023 study on AI's impact on jobs by Goldman Sachs that cites that up to 300 million jobs worldwide could be exposed to automation in the near future. This year the IPPR suggests the number could be around 8 million in the UK alone.
In one glance, a number this big can easily send anyone into an anxiety spiral, confirming their all-too-familiar fear of being replaced by AI. However, a closer examination of the words can help calm these fears
It is crucial to recognize that when we talk about jobs being “exposed” to AI, it doesn’t necessarily equate to roles being “fully replaced.” The term “exposed” can encompass a range of impacts and, in this context, does not inherently mean the complete elimination of human labor. This observation is also confirmed by the economists who conducted the Goldman study. As per their prediction, “Although the impact of AI on the labor market is likely to be significant, most jobs and industries are only partially exposed to automation and are thus more likely to be complemented rather than substituted by AI.
The role of AI in the current job market is, at the very least, misunderstood. This sentiment is not only held by tech industry leaders, but it's a perspective shared by economists and researchers alike.For instance, the latest Challenger Report shows that only about 2% of job cuts announced in 2024 can be attributed to AI adoption. This statistic underscores a fairer picture of the extent of the current level of job displacement due to AI and sheds light on how the level of fear amongst the public might be unnecessary.
But one might wonder if the number will always remain so low. Judging by the current trends and research reports, the answer is no. The number will most likely increase with time. As per another Goldman Sachs AI report, the technology is predicted to automate only 25% of labor tasks in advanced economies and 10-20% in emerging ones. This means that the vast majority of jobs are not expected to be impacted on a large scale and even those that are affected are not at risk of complete elimination.
In the long term, it can be argued that the impact of AI will not reach alarming levels in the near future. This prediction is backed by reports such as the 2023 McKinsey report that predicts that AI and automation are expected to affect only about 14% of the global workforce in a major way by 2030. This figure is much smaller than the 69% of people who 'believe' they will be replaced by AI.
It is no secret that in the grand scheme of events, some jobs, never mind how big or small the number, will be replaced. So, what about them?
Regarding these, even the fraction of jobs that do get completely replaced at the hands of AI are, fortunately, expected to be replaced by new roles and designations. As AI takes over the more redundant duties of the present-day workforce, it is simultaneously creating demand for more creative and strategic roles. For example, in the video tech domain, content creators are expected to transition into the role of prompt engineers, taking on the task of improving and monitoring the AI that will do the heavy lifting of their previous KRAs.
Expert economists have also supported this prediction by shedding light on how technological innovations as big as AI have always reshaped the workforce. As per Deloitte research, technological shifts have displaced about 800,000 jobs in the UK in the last 15 years. However, they have also created 3.5 million new ones, more than compensating for the loss.AI adoption and automation are likely to continue in the same stead and create new types of jobs which employ the people whose more redundant duties get replaced.Current Status of AI Adoption
Alongside fears, there has been a dramatic increase in AI adoption over the last year. The growing size of the market for AI technologies is one of the many trends that give away the promising future of AI. There is no room left for confusion now, it is clear: AI is not just a trend; it is here to stay.
AI is undergoing rampant expansion, a trend that shows no signs of slowing down or fading in the foreseeable future. One of the key measures individuals and organizations can take to cope with the dynamic and fast-growing world of AI technology is to grow with it.
Any brand looking to enhance the pace, precision and profits of its operations would greatly benefit from introducing AI and automation into its repetitive and mechanical workflows. Freeing up human resources' time for more strategic and creative ventures would provide an added layer of benefit and would likely unleash transformational growth.
To ensure employees are ready for the changes AI will inevitably bring, companies must prioritize investment in reskilling programs, awareness initiatives and job transition support. A report submitted to Emmanuel Macron by the Committee on Generative Artificial Intelligence in France suggests that AI could likely generate employment, but only if companies invest in training and better inclusion of staff representatives. Equipping the workforce with the right skills and mindset will help ease the transition and set the stage for long-term success in an AI-powered future.
The advent of AI has ushered in a new era of technological advancement, promising to revolutionize industries and reshape our daily lives. However, as with any significant technological shift, the implications for the job market are a subject of intense debate. Judging by the current predictions, market trends and expert insights, we can conclude that AI will replace some jobs but not in the way many people fear. AI is more likely to reshape more so than replace the workforce, making it more efficient and seamless, while simultaneously creating better opportunities for human talent.
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