Introduction to AI in the Workplace
Andy Jassy, CEO of Amazon, recently announced that his company would reduce its workforce because artificial intelligence (AI) replaces human employees. He also warned that AI affects a wide range of jobs and sectors. Jassy is not alone, as many other technology companies have published similar warnings about how AI breakthroughs could change their workforce.
Impact of AI on Jobs
In May, the CEO of the Ki Startup Anthropic shared with a news website that AI could eliminate half of all entry-level jobs in the next one to five years. US public companies have reduced the number of their employees by 3.5% in the past three years. In the past ten years, every fifth company has shrunk in the S&P 500.
Fears of Mass Unemployment
The Organization for Economic Cooperation and Development (OECD) estimates that a quarter of jobs worldwide has a high risk of being replaced by AI automation. However, it is also expected that AI creates new possibilities and increasing productivity. A report by the World Economic Forum forecast that this technological transformation would displace around 92 million existing jobs by 2030 and at the same time create 170 million new ones.
Who Will Be Most Affected?
A study conducted by the Pew Research Center in the US found that professions that include collecting information and data analysis, such as web developers, technical authors, accountants, and data input employees, are at high risk of being replaced by AI. Labor-intensive jobs that cannot be easily automated, such as construction workers, childcare workers, and firefighters, will probably remain the most resilient.
Exaggerated Concerns?
The labor market expert Enzo Weber is of the opinion that the concerns about the loss of jobs are wrongly placed. In an interview, he said that AI progress opens up a wide range of economic possibilities and more often helps workers than causes mass unemployment. A paper published by Harvard economists shared a similar view, arguing that the automation of individual job tasks "does not necessarily reduce employment" and even leads to "jobs in some sectors" of the economy.
Adaptation to a Changing Technology Landscape
The exact long-term effects of AI on global labor markets remain uncertain. The effectiveness of many AI tools depends on how well they are integrated into jobs and the willingness and ability of employees to use them. The labor market expert Weber asks companies and employees to adapt to the changing technology landscape and to take advantage of the opportunities, as AI technology is a "game changer". Further development and active training of employees are essential to keep up with the new technology.
