Artificial Intelligence (AI) has been one of the hottest topics in business, finance, and technology over the past two quarters. While the concept of AI has been around since the 1950s, it wasn’t until November 2022 that AI went mainstream and became a “household topic” with the emergence of ChatGPT. Like many emerging technologies that suddenly gain momentum, AI has led to a range of emotions, including fear and excitement.
One of the prevailing real-world concerns about AI is whether it will significantly disrupt the labor market. This week, IBM CEO Arvind Krishna made waves by saying that the company is planning to pause hiring for roles that it believes could be replaced by AI in the coming years. Krishna took things one step further by prognosticating that she “could easily see 30% of that getting replaced by AI and automation over a five-year period.”
In this article, we examine the likelihood that AI will significantly disrupt the labor market by considering:
Historical examples of emerging technologies and labor disruption
There are several historical examples of times that people wrongly predicted emerging technology would significantly disrupt labor markets, including:
How AI is being used in the workforce today
Today, a similar story is unfolding in the labor market. Take two real-world examples from the frontlines of business and technology:
How AI could disrupt labor markets in the future
While nobody has a crystal ball, AI has already been used to automate routine, repetitive tasks in fields such as manufacturing, data entry, and customer service. This has led to job losses in some industries, particularly in low-skill, low-wage jobs. As businesses continue to implement new AI technology, it’s reasonable to expect more of the same.
However, conversely, AI will continue to enhance productivity and drive efficiency, leading to economic growth which results in the creation of new jobs. Looking back at history, every time there have been concerns over the displacement of jobs due to technological advancements, new jobs have ultimately been created. It’s important to note that the impact of AI on the labor market will not be uniform across all industries and skill levels. Some industries and job categories will likely see significant job losses. However, it will be important for businesses and policymakers to prepare for these changes by investing in reskilling and upskilling programs to help workers transition to new industries and job categories.
So, could AI steal your job? The answer likely depends on your profession and industry. But just like previous technological inflection points, this disruption will create new opportunities as AI transforms work as we know it.
Michael Johnston
Tech Contributor
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