Generative AI, Job Losses and New Skills: What You Need to Know
The rise of Generative AI and its potential to automate many aspects of work has led to concerns about job loss across various industries. Here’s what you need to know about the impact of AI on the job market.
The March 2023 report from Goldman Sachs suggests that AI capable of content generation could potentially do a quarter of all the work currently done by humans. The report also notes that across the European Union and the US, 300 million jobs could be lost to automation, with administrative jobs and legal professions being the most affected, followed by architecture and engineering, business financial operations, community and social services, and management.
Not All Jobs Will Be Replaced
But not all that automated work will translate into layoffs, as most jobs and industries are only partially exposed to automation and are thus more likely to be complemented rather than substituted by AI. Jobs that involve genuinely creative work and new idea generation, as well as those that require sophisticated interpersonal relationships, are less likely to be automated by AI. Jobs that require lots of mobility, dexterity, and problem-solving ability in unpredictable environments, such as trade jobs, are also less likely to be automated by AI.
Developing Distinctly Human Skills
Developing distinctly human skills like emotional intelligence and outside-the-box thinking can help people learn to do their jobs alongside AI and stave off job loss to automation. Most jobs will be “complemented rather than substituted” by AI, and workers in occupations that are partially exposed to AI automation will likely apply at least some of their freed-up capacity toward productive activities that increase output.
The Benefits of Generative AI
Generative AI using natural language processing could potentially drive a 7% increase in global GDP and lift productivity growth by 1.5 percentage points over a 10-year period, according to Goldman Sachs Research. Generative AI has far-reaching implications for enterprise software, healthcare, and financial services industries, with the total addressable market for generative AI software estimated to be $150 billion, compared with $685 billion for the global software industry.
AI in the Workplace
As more generative AI tools are developed and layered into existing software packages and technology platforms, businesses across the economy are expected to benefit, from enhancing office productivity and sales efforts to improving patient diagnosis in healthcare settings and detecting cyber fraud. AI models like ChatGPT and other generative AI models are seen as a bigger threat than automation and robots to industries such as IT, software, tech, media, creative agencies, and digital economy platforms, potentially replacing up to 30% of jobs within the next five years. Agriculture, mining, and manufacturing jobs are less exposed to generative AI, while jobs in information processing industries like IT are the most exposed.
Preparing for the Future
While AI can eliminate repetitive work and free up people to do more creative work, it could also replace programming and journalism jobs and create more competition. Experts predict that 90% of news could be written by machines in 15 years. It is crucial for the future workforce to learn AI skills to prepare for the impact of AI on the job market. Companies and individuals should focus on developing skills that complement rather than compete with AI, such as critical thinking, creativity, emotional intelligence, and problem-solving abilities. With the right mindset and skills, individuals can navigate the changing job landscape and thrive in the age of AI.
The impact of generative AI on the job market is complex and multifaceted. While it is true that many jobs are at risk of being automated, not all will necessarily lead to job losses, and many industries will benefit from the increased productivity and efficiency that generative AI can bring. However, it is important for workers to develop distinctly human skills like emotional intelligence and creative problem-solving in order to complement rather than be substituted by AI. Moreover, the potential economic benefits of generative AI are vast, with the technology driving a significant increase in global GDP and transforming industries ranging from healthcare to finance. As AI continues to evolve and become more advanced, it is crucial for the workforce to adapt and learn the necessary skills to thrive in a world where machines play an increasingly important role in the workplace.