AI is becoming mainstream at a much faster rate than anticipated. In this situation, the million-dollar question would be to understand the impact of AI on employment.
There is no doubt that technological upgrades in the business lead to significant changes. However at one hand, there are multiple positives of these upgrades, and there are plenty of negatives too.
Historically, it has been seen that advanced technology has led to multiple job losses. On the flip side, it has created new ones too. As of today, the technology at its prime that is disrupting the market and causing significant changes is AI (Artificial intelligence). Not just in IT (information technology) but from multiple industries to multiple use cases and workflows, AI is revamping the way operations are led within an organization. One area where it is making significant strides is in the field of human resources. With the integration of applicant tracking system and AI, HR professionals can leverage advanced algorithms and machine learning to identify top candidates, predict candidate success, and enhance the overall recruitment experience.The future of businesses is an artificial intelligence future.
In this article, we will be assessing the impact of AI on employment and learn about the various facets related to this topic.
The majority of great and novel ideas have resurfaced from imaginative writers. Writers that were behind movies like ‘Wizard of Oz’ and ‘Metropolis’. Alan Turing, a polymath often known as the father of AI was the first person who thought of turning this into reality. He thought of the mathematical possibility of implementing AI for solving problems. He provided the logical framework in his paper ‘Computing Machinery and Intelligence’. After that, the AI idea flourished between 1957 to 1974 because of better computational power, more storage capacity, and speed. However, a lot of things happened between this period and the period later on.
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AI in business has been radically changing the landscape. At one end, where there were plenty of redundant jobs and work areas, the AI tech liberated it from the clutch of monotony, slow-paced work, and most importantly manual errors. This was another factor that could easily canvas the impact of AI on employment.
Businesses have adopted AI for various facets of their work. Here are some of the most common factors that create impact of artificial intelligence on employment by providing better services to businesses such as:
With the above pointers, we have barely scratched the surface. The application of AI has vast scope in terms of business application and higher ROIs. This is the reason people working in different industries are threatened because they understand that the effect of AI on employment can be cathartic in some spaces. Spaces where employees are either replaced or have to look for a completely new job.
Currently, AI has been moonlighting multiple jobs with the inception of generative AI. A lot of people also believe that the impact of artificial intelligence on employment could be the replacement of employees. It is not we who believe it but an article by Forbes clearly states the following facts of today:
There are innumerable impacts of artificial intelligence on employment, however, the idea behind stating these facts was to get you an understanding.
The three prime industries that will bear the most on the spectrum impact of artificial intelligence are:
Reports by Cambridge Center for Alternative Finance and the World Economic Forum suggest the usage of AI by 56%. This includes implementation in both facets i.e. implementation and revenue generation. The World Economic Forum also states that the affect of AI inclusion will be threefold i.e. job cuts, job creation, and enhanced efficiency. It also states that 27% of jobs in China’s financial sector will be replaced by AI.
A research paper was published in Social Science Research Network that was 14 pages long and submitted on the topic of same-sex marriage by an attorney. Andrew Perlman, an American entrepreneur, suggested that AI could provide legal help for people who can’t afford it.
A majority of sensational news today is paraphrased. It has been reported that major media companies such as Business Insider, CNBC, CNET, etc have all used ChatGPT. In fact, as per Salesforce research, almost 84% of marketers responded ‘Yes’ for using AI in 2020.
Note: Want to learn more details about the role of AI in legal industry, here’s an article to fill-in your curiosity.
There are multiple stats that focus on the relevance of the idea behind job losses due to AI inclusion. Here are some stats aggregated by Zippia that creates a bigger picture on the impact of AI on jobs.
AI has already made its way to organizations. The majority of work that is done today is directly and indirectly monitored by systems that use AI algorithms. It is to gain insights from those data to better the decision-making process. However, in the coming time, the requirement for similar applications of AI will increase.
This will demand organizations to make changes to the systems, businesses would be required to make strategic changes and much more. Most likely all the redundant tasks and operations would be done by machines while humans would be hired to monitor it. Overall, the workforce would require retraining and the capability to work alongside and with AI.
There is no doubt that the impact of AI on employment will be cathartic in many cases. In fact, there are many top artificial intelligence companies that are constantly producing solutions for multiple organizations. Artificial intelligence future entails jobs that are repetitive and redundant are surely going to be replaced by AI. However, it does not mean that there won’t be opportunities.
Organizations would still require human intervention because AI is very objective in nature. It can replicate the same action in a number of cases, however, if the situation flips, AI won't have an answer, and the workflow would require a human operator or mediator to drive its action in the right direction. As an employee, it would be beneficial for us to embrace AI and make use of it in the best way possible. This would create a sustainable environment that could retain both the machine and its human counterpart intact in a business.
Aparna is a growth specialist with handsful knowledge in business development. She values marketing as key a driver for sales, keeping up with the latest in the Mobile App industry. Her getting things done attitude makes her a magnet for the trickiest of tasks. In free times, which are few and far between, you can catch up with her at a game of Fussball.
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