AI in the Workplace
As the global economy implements artificial intelligence (AI) in the workplace, concerns arise regarding the potential for widespread job losses as a result. However, if true, will these human job losses be transitory or permanent? Or will the AI revolution give way to long-term human job growth given anticipated efficiency gains?
Currently, AI powered systems can perform repetitive, predefined tasks better and more efficiently than humans, at a fraction of the cost. This is not a new concept, as AI-based robots have already replaced workers in manufacturing assembly lines, cashiers at checkout points, and applications that dispense information (i.e., chatbots, digital assistants, etc.) among others. The fear is that, as AI continues to develop, more experienced roles which involve a higher degree of analytics and decision making may also be automated.
Historically, similar economically transformative time periods, such as the Industrial Revolution and the development of the internet, have made certain job positions obsolete while creating new jobs in the process. For example, large-scale production of chemicals, concrete, and modern means of transportation - just to name a few - came out of the Industrial Revolution in the late nineteenth century and the early twentieth century.
Fast forward to more recent years, and during the “Information Age” in the mid twentieth century; as well as the “Internet Revolution” in the early nineteen nineties, we saw the birth of industries never thought possible before their time. Telecommunications, including mobile communications, biotechnology, modern software, video gaming, etc. are some examples of standalone industries created by revolutions in technology.
If we analyze how these types of transformational technology revolutions have played out historically, the transition process to a new level of automation has always been difficult despite everyone’s optimism. This is especially challenging for those workers whose occupation is being replaced by new technologies. In the case of AI, workers whose occupations are less skilled, more repetitive, and with more predefined tasks will become more vulnerable. Consequently, unemployment and underemployment may be the two biggest challenges for these groups. To mitigate the negative effects of this transition, companies and governments should direct efforts and resources and provide appropriate funding towards education and training programs to help affected workers assimilate and remain in the workforce. Employers can develop retraining programs for displaced internal workers, promote mobility within the company, and consider the adoption of AI in phases, or as a worker support tool instead of a complete replacement.
However, governments and business will have a hard task of balancing a more human approach to AI implementation and market competition. This is especially true if we consider that different industries, sectors, and geographies are asymmetrical and may require more targeted solutions. In other words, any mitigation measures applied should be tailored to each economic sector or industry and may vary across different parts of the same country or geographic area.
In conclusion, AI is yet another historical technological shift that is set to transform the way work is performed globally. We should see AI not as a threat, but as a net benefit to employment in the long run and after the initial disruption. This revolution, like others, represents an opportunity where new industries, companies and occupations will emerge. It is going to depend on governments and businesses around the world how we adapt to this new paradigm shift. We should adapt with optimism.
Sources
1. International Labour Organization (ILO) https://www.ilo.org/resource/article/minimizing-negative-effects-ai-induced-technological-unemployment
2. Brookings https://www.brookings.edu/articles/ways-to-help-workers-suffering-from-ai-related-job-losses/
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