Positive development: Artificial intelligence is unlikely to replace your job. Negative aspect: It cannot be disregarded.
Thoughts on AI, Jobs, and the Future of Work
By Dutch, University of St Andrews
Two tech mavericks, Sebastian Siemiatkowski of Klarna and Jensen Huang from Nvidia, have stirred up debates about AI's impact on the workforce. Siemiatkowski claimed that Klarna no longer hires because AI can perform most human tasks, while Huang argued job losses would come at the hands of AI-savvy workers, not the machinery itself.
Research paints a more intricate picture than wholesale job displacement or simple augmentation.
Take, for example, TikTok's recent layoff of content moderators as they transition to AI moderation. By spring 2024, 66% of U.S. employment will be exposed to high or moderate AI impact, with the remaining 34% of jobs still affected in secondary tasks. The adoption rate of generative AI outpaces even that of personal computers and the internet, making this transformation particularly significant.
Unlike previous waves of automation, generative AI is disrupting a different range of cognitive and non-routine tasks, primarily in middle- to higher-paid professions. This marks a departure from previous automation, which mainly affected routine manual labor. As the generative AI landscape continues to evolve, so will this trend.
One of the first comprehensive studies examined AI-powered conversational assistants and their impact on customer support agents. The findings presented a mixed picture:
- Increased productivity: AI tools boosted average worker productivity by 14%. Low-skilled workers saw the most dramatic improvements, with gains of up to 35%, as AI helped them quickly learn high-performing techniques.
- Minimal benefits for high-skilled workers: Despite having access to AI tools, highly skilled workers gained little from them, which may suggest AI is not replacing human expertise but rather making things more equitable by enhancing the capabilities of less-experienced workers.
Siemiatkowski's claim of ceasing hiring and relying on natural attrition at Klarna echoes fears of widespread job displacement. However, Klarna's strategy of increasing salaries for remaining workers suggests a more nuanced reality: as AI automates certain tasks, human expertise becomes more valuable, not less.
We're witnessing a transformation of roles rather than wholesale replacement of workers, as suggested by KPMG's survey of U.S. executives. Variations in the effects across sectors are evident, with benefits in manufacturing and negative impacts in administrative jobs.
Employee training and development and clear AI use guidelines are key to ensuring job security. Research on ChatGPT adoption in Denmark showed that young, less-experienced, higher-achieving, and male workers were the leading adopters, suggesting substantial productivity potential in the technology, albeit with employer restrictions and the need for training hindering full adoption.
The evidence points to strategies for adaptation:
- Lifelong Learning: Workers must continuously update their skills, particularly focusing on complementary capabilities such as critical thinking and complex problem-solving.
- AI Literacy: Understanding how to use AI tools effectively becomes as important as traditional job skills.
- Organizational Adaptation: Companies must invest in employee training and implementation of clear AI use guidelines.
In this new landscape, the key to job security isn't fighting AI or passively accepting it. Instead, it's actively choosing to become the person using AI rather than the person being replaced by someone who does. Early indications suggest that AI could level the playing field for less experienced workers. The future belongs to those who embrace the change and adapt swiftly.
[1] RTE News, Almost A Third Of Jobs Could Be Negatively Impacted By AI, April 13, 2023.[2] RTE Brainstorm, Is It Really Bonkers To Use An Algorithm To Hire A Person?, Nov 9, 2022.[3] Bloomberg Technology, Klarna CEO Sebastian Siemiatkowski Says AI Is Replacing Workers At The Payments Company, Nov 8, 2022.[4] The Conversation, There’s A Shortcut To Productivity – And It’s Not AI-Jobs Are, Nov 7, 2022.[5] RTÉ Radio 1’s The Business, Klarna Sparks A Backlash After Announcing Layoffs As It Shifts To AI Moderation, Nov 8, 2022.[6] McKinsey & Company, Jobs Lost, Jobs Gained: What the Future of Automation May Hold, Jan 2017.[7] Goldman Sachs, Future of Work: Creating the Individual Opportunity, Oct 2015.
- The adoption of artificial-intelligence in various sectors, such as the deployment of AI moderation on TikTok, indicates a shift in technology's role from simple job augmentation to a more profound impact on education-and-self-development, necessitating personal-growth through lifelong learning and AI literacy for job security.
- As companies like Klarna rely less on human labor and more on AI, the value of human expertise in navigating and adapting to new technologies becomes increasingly significant, implying that personal growth and AI literacy are key to maintaining employability and achieving success in the future of work.