Impact of AI on the Job Market – Is It Taking Away the Jobs?

AI has become a reality. For decades, it seemed like a far-fetched dream, but it’s here, and it’s already transforming the industries. Businesses are using this advanced technology to make decision-making smart and smoothen internal processes for higher efficiency. 

However, it’s also making people scared. Many people are worried because AI is anticipated to take away their jobs. The good thing is that this fear is only in our minds right now because no such thing has happened yet. This is because AI is not replacing the workers, but it’s changing the way job markets work.

Businesses are looking for more technical personnel, and AI is also creating new job roles. Not to forget, the already employed people are doing their jobs more productively and strategically. So, if you want to learn the impact of AI on the job market, this article will provide full insights into future AI and its impact on jobs.

Dissecting the Growth of AI

Artificial intelligence seems to be a two-year-old baby, but this term has been around since 1956. John McCarthy first found this term. This is the same year when transistor computers came out for the first time. Ever since then, technologists have been trying, and it seems like they have achieved the milestone.

In the last quarter of 2022, ChatGPT 3.5 came out, and it was marked as a new milestone achieved in the world of AI. This is because it increased the adoption of AI. It offers a lot of benefits for businesses, such as improved data analytics and automation of mundane or repetitive tasks. Moreover, it has made decision-making convenient and problem-solving is quicker.

According to Bloomberg Research, generative AI is likely to become a market of $1.3 trillion by the year 2032. As for now, its value is around $40 million, but the graph is going to have an upward trajectory. Since the market is meant to expand only, it’s no longer a question of choice. Everyone has to adopt and embrace AI. The question is “how can we maximize the benefits by using AI?”

Will AI Replace Jobs?

According to research conducted by Goldman Sachs, Artificial Intelligence has the tendency to replace around 300 million jobs (yes, we are talking about full-time jobs). For instance, it might replace the mundane tasks in Europe and the USA, but it also means that new jobs will be created.

In addition to this, there is a chance that it will increase the total annual value of services and goods. There will be 7% increase in overall value. Also, 2/3rd of the jobs in Europe and America will go through the impacts of AI automation. Not to forget, there are 25% of the jobs that can be easily done by AI. 

According to the University of Pennsylvania, the white-collar jobs that help people earn around $80,000 might have to give up their jobs. By the year 2025, Artificial Intelligence will replace around 2 million workers in manufacturing facilities. Not to forget, a study done by McKinsey Global Institute says that 14% of people will have to change their career trajectory. This is because they will have to change their careers because of advancements in AI, robotics, and digitization.

AI & Job Roles

AI and automation are going hand in hand, and they are transforming businesses. Similarly, there is a huge impact on different job roles, including technical fields. For instance, AI is automating the manual as well as repetitive tasks. Moreover, it will enhance the throughput. 

However, the AI shift is also evolving many job roles. While some jobs will soon become obsolete, the new ones will come out as well. For instance, if you are a manufacturing worker, you need to learn new skills to maintain and operate high-tech machines. In addition, you will need to become acquainted with robots who will handle the manufacturing units. 

On the contrary, when AI is integrated into high-tech fields, new job roles will be created. For instance, data analysts, machine learning specialists, and AI programmers are some of them. However, these new jobs mean that you need technical skills as well as a clear understanding of different business processes. In the coming future, you will need adaptability and creativity as well. That’s because it’s important to leverage AI and automation properly.

So, while you are wondering, “will AI take my job?” you’ve to think about staying relevant. Staying relevant and learning advanced skills is important to become a competitive part of your career. It’s better that you develop skills that are constantly increasing in demand. Some of these skills include programming, machine learning, and data analytics. 

The Right Course of Action

Start by taking professional courses. Moreover, if there are practical workshops happening, sign them up. If you want to embrace artificial intelligence and capitalize on the opportunities, you can use it to augment human capabilities. For this purpose, you should learn how to use new technologies and AI. Also, you should collaborate with these systems for better outcomes. 

On top of everything, the workforce should stay informed about AI and new developments. For instance, you can attend conferences and read industry publications. In addition, don’t forget to network with the experts in your field. It’s vital because the landscape is constantly evolving and you’ve to respond properly.

AI & Workforce

There is a multifaceted impact of AI on the workforce. Since the manual tasks will be automated, the workforce will have a lot of free time to focus on creative work. In addition, they can spend time understanding and completing complex tasks. However, it’s evident that people will have concerns about the demands of the job. 

Job displacement is a real concern. To be precise, there are higher chances of unemployment. As a result, the workforce constantly needs to learn new skills. The second concern is discrimination and bias in the algorithms. This is important because algorithm issues might cause issues for marginalized communities and minorities. 

Lastly, security and privacy are some other concerns. Since AI is improving, proper encryption and security are becoming the must-haves. In addition, you must ensure that AI systems are protected against cyberattacks. 

AI & Employment

AI is enhancing the current job roles and creating new jobs as well. With the constant development and evolution of AI, it’s important to think about its impact on the job market. According to McKinsey & Company, AI will create twenty to fifty million jobs by the end of 2030. The job roles will be in different industries, mainly in finance, manufacturing, and healthcare. 

The new roles will need more creativity, problem-solving, and critical thinking. In addition, it’s making the current jobs more productive by increasing precision and accuracy. For instance, data analysis and quality control will help improve the results. Healthcare is a great example because AI is helping recommend appropriate treatments and diagnose diseases.

If you are wondering how will AI affect the job market, there is a whole new debate. This is because, in addition to creating new jobs, it will also displace a lot of jobs. In hindsight, 133 million new jobs will be created. If we do the math, there will be an increase in jobs, but the required skills are too technical. 

If you are scared about unemployment, its rate will vary with industry and region. To illustrate, jobs will increase in the education and healthcare industries. On the other hand, many jobs will be cut out in the manufacturing industry. Overall, we do believe that increased yield and productivity will improve economic growth. However, some people are also worried about the wealth gap because people with technical skills will earn more. 

Job Roles Under Threat

It’s common to wonder, “What jobs will AI replace?” If you have a similar question, following people have to be careful;

Receptionists 

The high-level companies are using robots to receive customers at the reception. In addition, customer calls are handled by AI as well. The best example is AimeReception. This receptionist can see, talk, understand, and listen to customers as well as guests.

Customer Service Representatives 

For the longest time, customer service representatives have been hired from Pakistan and India because of low costs. However, these jobs will be replaced by AI because computers are handling the interactions. It works because the majority of customer queries don’t need social or emotional intelligence. So, AI provides automated responses and keeps customers satisfied.

Salespeople 

There was a time when brands would hire salespeople for retail and advertising. However, advertising is mostly done on social media and the internet. On the other hand, the retail is being handled by robots. For this reason, the jobs of salespeople are under question.

Accountants 

Bookkeeping and accounting were considered high-paying jobs, but automation is taking this away. That’s because there are AI-centric apps that make accounting more efficient. In addition, the availability of cloud-based services makes bookkeeping and accounting secure. Also, the usage of AI algorithms ensures that data is analyzed properly after gathering. It’s helping because the results are more accurate, and tools cost less than salaries.

Research & Analysis

Data streamlining and analysis is a long and complicated task. For this reason, AI is assisting in streamlining the research, analysis, and development process. In particular, the new tools have a higher processing power, which improves data sorting and analysis. 

Retail 

If you’ve been to huge grocery stores, you must have seen the self-checkout stations. These kiosks are a perfect example of automation. It can open doors for cost-benefit analysis. This is because when customers scan their own products, it increases the risk of theft. However, it also helps companies save money on salaries as they won’t have to hire cashiers.

Insurance Underwriting 

Data analysis is important when you’ve to check the viability of insurance claims. It automatically applies all the formulas to underwrite. This means that companies won’t have to hire someone for underwriting only.

Warehouse Works 

More and more people are choosing online shopping because it’s easy and flexible. Given this high demand, automated systems and processes are being used to fulfil the orders and get them into the trucks. This automation will make it easier to access computerized systems for locating and fulfilling orders. Consequently, there is a limited need for warehouse workers. 

Which Jobs Are Safe from AI Impact?

While some jobs are under the red light, there are some jobs of the future. These are the jobs that will remain the same and won’t be replaced by AI. It’s important to know about these roles when you want to know the impact of AI on the job market. If you’ve been worried about your livelihood, see if your profession is safe!

Teachers

Many kids want to become teachers when they grow up because they are inspired by their favorite teachers. Some teachers are using slides to teach and use digital resources. However, it’s not possible that this entire job will be taken away by AI. 

C-Level Roles 

The C-level roles include CEOs, directors, and managers. These people are important for every business as they offer leadership. However, AI cannot replicate the thought process and leadership that these people have. In particular, there are no codes here. Also, we don’t think anyone would be interested in investing in your company if they had to talk to a robot rather than a real person.

Lawyers 

Whether you are a judge or a lawyer, you need to do strategizing, negotiation, and case analysis. All these skills come with a lot of knowledge and personal experience. In addition, these people need a lot of skills to understand the complicated legal systems. This is important to defend their cases and clients in the court. For this reason, there will always be a need for human intervention. Human intervention is important to consider different aspects of a case. 

Hiring Managers

It’s evident that AI has been easing the hiring process by analyzing the resumes. However, they still do a lot of different jobs and hiring new people is only one feather in their hat. For instance, they keep the employees motivated and encouraged to work. Moreover, they are great at identifying the signs of discontent among the team members and managing them.

Psychiatrists & Psychologists 

Many new ventures are coming out where face recognition technology is being used to offer counseling to patients. It offers care and support to people who are mentally struggling. However, mental health is a sensitive field, and patients need a human touch to feel better. Human support is more important and helps them connect on a personal level.

Surgeons 

Over the years, technology has improved the accuracy of diagnosis. In addition, it helps with disease detection. For example, micro robots are helping surgeons in operation theaters to make sure the surgeries aren’t too invasive. However, robots cannot do the entire surgeries because surgeons can connect with the patients personally. Also, surgeons earn a lot of experience and skills throughout their careers, which comes in handy during complicated surgeries. 

Computer Analysts 

Maintenance work will always need a human, irrespective of how automated things become. Also, humans are needed to update, set up, and optimize the computer systems. These systems include hardware as well as software – proper coordination of these systems is important for computer systems to work. Having said that, only a human can review the system and control the workflows. In addition, they can schedule system upgrades.

Writers & Artists 

Writing and arts are two fields that require research and creativity. It’s evident that machines and robots cannot have this as they depend on training data. So, even if AI has the ability to create content and art, it won’t have the same quality and connection. In simpler words, AI content and art won’t have the same magic as human content would have.

How to Adapt to AI – Strategies to Follow

AI is going to impact everyone, whether they are working from home or doing their own business. However, people still aren’t able to grasp how AI can help them. For this reason, we are sharing some strategies that you can follow for adapting to AI.

Keep Innovating 

AI is a huge threat to jobs that are meant to be repetitive. This is happening to automate a lot of jobs. For this reason, workers need to explore how they can contribute to the businesses by innovating. For instance, they should take part in strategic processes so they become an important part of the business.

Adapt Properly

The first step is to reflect. We recommend sitting down and and considering what you’re doing well. Also, you’ve to think what you can learn better. In fact, you should look for work areas that will be automated, so you can focus on the technical aspect. We recommend learning analytics and human development skills through professional certificates.

Take a Strategic Approach 

If you have a lot of business responsibilities, it’s time to think about why you do them. Then, you’ve to think about how AI can help ease those responsibilities. It’s evident that business challenges are becoming complex as there is new data, technology, and integrations.

Provide AI Training

If you want AI to work as creatively as humans, it’s important to train the AI systems. For this reason, you need to train the AI systems by engaging with them regularly.

Keep Developing your Skills

AI is the reality, and it’s putting a question mark on job security. However, if you don’t want to be laid off, it’s important to develop skills. In addition, it’s important to focus on marketing yourself because personal branding will open a lot of opportunities for you. For instance, you can learn new skills and get cross-training to make sure you’re ahead of the curve. 

To conclude it, it’s time that you stop fighting the AI revolution because it’s not going anywhere. Instead, you should befriend AI. For instance, you should learn about it and incorporate it into your business processes.

Which New Roles will AI Create? 

Since AI is here to stay, there is a positive future for AI-related jobs. In fact, the jobs related to data scientists and machine learning are already coming to the top of the list. Moreover, the projects related to information research and computers will grow by 23% by 2032. Also, people have been wondering, “Will AI create more jobs?” So, if you don’t shy away from changing your career trajectory, we are sharing some new roles that you can prepare for!

AI Engineer

They use a combination of machine learning and artificial intelligence to create new apps and systems. These apps and systems help incorporate AI into the real world. They use algorithms that are trained on data to ensure better performance. They can help reduce costs and enhance productivity. As a result, the profits will increase, and business processes will become more streamlined.

ML Engineer

These are the professionals who design and build AI algorithms that help make machine learning apps. It wouldn’t be wrong to say that ML engineers help improve and maintain the current systems. Also, they ensure collaboration between data scientists who are developing AI systems. They help conduct tests and experiments. Moreover, they are responsible for completing the statistical analysis.

Data Engineer

They help build systems that gather and transfer raw data into practical information. This practical information can be used by data scientists and business analysts. Moreover, they ensure data is readily available for process evaluation and optimization.

Robotics Engineer

As the name suggests, they are responsible for making robotic apps in the medicine, manufacturing, defense, and automotive industries. They design new robots and make prototypes for testing purposes. This role demands you to have mechanical as well as electrical skills with a lot of computer science background.

Frequently Asked Questions

How will artificial intelligence alter the job market?

Artificial intelligence will alter the job market because it will take away mundane jobs and tasks. This means that demand for automation-related jobs will increase.

What’s the connection between employment rate and AI?

According to McKinsey research, AI will only lead to a loss of 5% of jobs. However, over 65% of jobs will need adaptation to artificial intelligence because employees will have to learn new skills.

Many people are calling AI a threat to jobs. Is this true?

No, it’s not true if you keep learning new skills. Remember that manufacturing and retail will struggle through the loss of jobs. On the contrary, people working in tech will have more leverage.

Is there an impact of AI on the economy as well?

By the year 2030, AI will increase the economic yield to around $13 trillion. This means that global GDP will see a surge of 1.2%. It will happen because manual labor will be replaced by automated machines.

Which jobs are under threat because of AI?

The basic roles, such as bookkeeping, customer service agents, and data entry, are under threat. In addition, people working at assembly lines need to upgrade their skills because robots are working faster, and they don’t ask for breaks.

The Bottom Line 

AI will keep on becoming a part of our lives, personal or professional. Many people are scared, but the right implementation will only bring positive results. It will improve many jobs by automating mundane tasks, and new jobs will be created as well. However, if you don’t want to be left out in the non-AI world with no job, we recommend you learn new skills. So, it’s time to learn and get some professional certificates, meaning you keep on thriving without worrying about AI and job displacement.

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