• AI Fire
  • Posts
  • 💻 AI and Jobs: How Artificial Intelligence is Changing Work Worldwide

💻 AI and Jobs: How Artificial Intelligence is Changing Work Worldwide

Navigating the Impact of AI: Opportunities and Challenges in the Global Job Market

💻 AI and Jobs: How Artificial Intelligence is Changing Work Worldwide

1. Introduction

Artificial Intelligence (AI) is reshaping jobs worldwide, transforming the landscape of work with new opportunities and challenges. It's changing how we work, influencing everything from the creation of new job roles to the automation of existing ones. In this rapidly evolving job market, understanding the impact of AI across various industries and the skills needed for future success is crucial for today's workforce.

2. Statistics and Key Takeaways

2.1. Statistics

  • Job Loss Projections: Up to 45 million Americans could be jobless by 2030 due to AI, affecting about a quarter of the U.S. workforce. Globally, 1 billion individuals might lose their jobs to AI in the next decade.

  • AI's Positive Economic Impact: AI could contribute $15.7 trillion to the global economy and create 97 million jobs by 2030.

  • AI Workforce Growth: Between 2017 and 2019, there was a 63% employment growth in the AI workforce across OECD countries, compared to just 3% for overall workers.

  • Projected Job Market Changes (2023-2027): An estimated 83 million jobs could be lost, with 69 million new jobs created, resulting in a net reduction of 14 million jobs.

  • AI Skills Demand: 51% of employers view AI development as the top skill needed in the next five years.

2.2. Key Takeaways

  • Disruptive Impact of AI: The integration of AI in various sectors poses significant risks, including substantial job losses and the obsolescence of certain roles, especially in low- and middle-income countries.

  • Uneven Global Recovery: High-income countries are showing better recovery from recent economic challenges, while others struggle with higher unemployment rates.

  • New Job Opportunities and Productivity Gains: Despite the risks, AI is expected to create new job opportunities and significantly increase productivity and efficiency in the workplace.

  • Growing Importance of AI Skills: There is a strong demand for AI skills in the workforce, necessitating a shift in training programs to include AI, big data, and related fields.

  • Sector-Specific AI Adoption: The adoption and impact of AI vary across industries, with sectors like healthcare, technology, and manufacturing experiencing high demand and others like real estate and education being more cautious.

3. Global Economic and Geopolitical Context

Recent years have seen major changes due to health crises, economic shifts, and geopolitical changes. These factors are reshaping job markets worldwide, creating different situations in various countries.

High-income countries are experiencing lower unemployment rates, recovering better from recent challenges. However, low- and middle-income countries face higher unemployment, struggling more with the economic aftermath of events like the COVID-19 pandemic.

In places like Europe and the United States, there's a strong demand for certain jobs, especially in healthcare, technology, and manufacturing. Yet, these regions are also dealing with worker shortages in various sectors.

Overall, the global labor market is showing uneven recovery, with advanced economies able to provide more support to their workers and emerging economies facing more challenges.

4. The Rise of AI and Technology in Business

4.1. Impact of Tech Adoption on Business and Jobs

The Fourth Industrial Revolution is making technologies like big data, cloud computing, and AI more common in many industries. About 75% of companies plan to use these technologies more in the next five years.

Most new technologies, especially AI, are expected to create more jobs than they replace, although some jobs might be lost. Big data and cybersecurity are likely to lead to many new jobs. However, robotics might reduce jobs overall.

Technology adoption, 2023-2027 Source World Economic Forum, ranked by the share of organizations surveyed who are likely or highly likely to adopt this technology over the next 5 years

Different industries have different plans for using new technologies. Electronics and Chemical industries are eager to use more tech, while Insurance and Real Estate are more cautious. The use of environmental management technology varies a lot by industry, being popular in Oil and Gas but not as much in Education and Employment Services.

The use of robots is increasing, especially in industries like Electronics and Energy Technology. There's been a big increase in robots used in factories over the last five years.

4.2. Generative AI will change the way we work

Generative AI, which creates new content, is expected to drastically change content creation across various fields. Over 90% of respondents see the benefits of generative AI at work, mainly in boosting innovation and learning.

About 93% of employers and 86% of employees expect to use generative AI in the next five years, with significant usage across different work functions. Tech specialists anticipate the highest use, showing generative AI's broad appeal and potential in the workplace.

Expected benefits of generative AI in the Workplace

4.3. Most organizations will use AI by 2028

Generative AI is anticipated to significantly change business operations soon. A survey reveals that 92% of employers expect to implement AI solutions in their organizations by 2028, predicting a positive impact on productivity. Most employers (92%) see their IT departments as the primary beneficiaries of AI but also acknowledge that over three-quarters (78%) of other departments, including human resources, sales, and marketing, will benefit as well. The key advantages employers foresee from AI include task automation (64%), improvement in workflows and outcomes (58%), and enhanced communication (54%).

Benefits of AI Across the Organizations

4.4. AI’s Role in Enhancing Worker Efficiency

AI can significantly increase worker efficiency when properly utilized. It enhances analytical judgment, bias detection, and emotional intelligence. In some areas, AI has boosted productivity by up to 72%. Employers believe that with full utilization, AI could increase organizational productivity by 47%. Key productivity improvements include:

  1. Enhancing creativity: AI aids in idea generation and designing multimedia content.

  2. Improving workflows: AI is used for tasks like quality control, fraud detection, and medical imaging.

  3. Automating tasks: AI assists in scheduling, email filtering, and report generation.

By 2028, 88% of employees expect to use AI in their work, with significant adoption among both tech and non-tech workers. This adoption rate is especially high among non-tech workers, who anticipate using AI for a third of their job tasks, nearly doubling in five years. This includes roles like customer service and administrative work, where AI can boost productivity in essential tasks.

AI-driven Productivity Gains

5. Future of Jobs

5.1. Strong Demand and Growth in AI Workforce

The demand for workers with AI skills is strong across OECD countries, showing a significant employment growth of 63% for the AI workforce from 2017 to 2019, compared to just 3% for overall workers. This rapid growth represents an acceleration from previous years. Countries like the Netherlands, Portugal, and Greece experienced the highest growth rates in the AI workforce, while the United States, Germany, and Norway had the lowest.

Employment growth for the AI workforce and overall, 2017-2019

There's also an increase in the average weekly working hours for AI professionals, indicating a strong demand for their skills. While employment growth can be a misleading indicator of labor demand, the growth in working hours offers a clearer picture.

Average hours growth for the AI workforce and overall employment, 2017-2019

The job market is expected to change a lot from 2023 to 2027. Here are the main points to know:

  • Projected Job Changes: An estimated 83 million jobs to be lost and 69 million to be created in the next five years, leading to a net reduction of 14 million jobs.

  • Structural Labor-Market Churn: The report forecasts a 23% churn rate, affecting 152 million jobs, indicating significant shifts in employment structures across various sectors.

  • Sector-Specific Churn Rates: High churn rates are expected in Supply Chain and Transportation (29%) and Media, Entertainment, and Sports (32%), while lower churn is anticipated in sectors like Accommodation, Food and Leisure; Manufacturing; and Retail.

  • Job Growth and Decline Trends: Technology-related roles like AI and Machine Learning Specialists are among the fastest-growing jobs, whereas clerical and secretarial roles, such as Bank Tellers, are expected to decline rapidly.

  • Alignment with Past Trends: These job trends are consistent with previous reports, signaling ongoing reconfiguration of labor markets due to technological advances and automation.

  • Global Workforce Analysis: The report's findings, based on a dataset corresponding to 673 million workers, form part of a broader analysis of the global workforce, highlighting the extensive impact of these job market changes.

Projected job creation and displacement, 2023-2027

6. Future of Skills

6.1. The AI Skills Gap: Current Scenario

Employers think that knowing about AI (Artificial Intelligence) is the most important skill for people looking for jobs. In a survey, 51% of employers said AI development is the top skill they want in the next five years. Skills in advanced digital marketing and app development are also very important.

Measuring the AI Talent Gap

But just knowing tech stuff isn't enough to use AI well. Employers also really value skills like thinking critically and solving problems. These skills help people understand and use AI better. Also, knowing about ethics and risk management is important. This is because AI can have issues like being biased or not being transparent, and it's important to manage these risks.

So, for companies and their workers, being good at AI means having a mix of different skills, not just being good at coding.

Critical AI Skills

6.2. Adapting Training Programs for Changing Job Skills

Businesses are focusing more on training programs as job skills change. Currently, 41% of workers have completed training for new skills. Companies are emphasizing training in areas like AI and big data, leadership, and social influence, which they see as crucial for future success. These skills, along with design, environmental stewardship, marketing, and cybersecurity, are getting more attention in training than their current role in jobs suggests, showing that businesses are preparing for future needs.

Barriers to Acquiring AI Skills

7. Challenges and Opportunities

While AI poses the risk of job losses and making certain roles obsolete, it also offers significant opportunities for creating new jobs, boosting productivity, and contributing to economic growth. The future will likely see a balance of these challenges and opportunities, as the workforce adapts to integrate AI into various sectors.

7.1. Challenges:

  • Job Losses: AI could lead to significant job losses. Some studies suggest that 45 million Americans might be out of work by 2030, which is a quarter of the U.S. workforce. Globally, up to 1 billion individuals could lose their jobs to AI in the next decade.

  • Job Obsolescence: An additional 375 million jobs might become outdated due to AI automation.

  • Uncertain Estimates: Predictions vary widely, with estimates of job loss due to AI ranging from 9% to 47%.

7.2. Opportunities:

  • New Job Creation: AI opens new job opportunities and encourages people to learn how to use it, potentially balancing out job losses.

  • Increased Efficiency and Productivity: AI can improve labor productivity by up to 40% by 2035, taking over routine tasks and letting humans focus on strategic and creative work.

  • Economic Growth: AI is predicted to create 97 million jobs and contribute $15.7 trillion to the economy by 2030.

  • Improvements in Various Sectors: AI can enhance customer service, content creation, and data analysis, among others.

8. Conclusion

AI and technology are reshaping the job market, posing the risk of job losses for many, but also offering opportunities for economic growth and new jobs. AI skills are becoming increasingly important in this changing landscape. Despite the challenges, AI has the potential to open up new job opportunities and improve work efficiency.

For more information and deeper insights, please check out these articles:

After reading this article, how would you rate your understanding of AI trends?

Login or Subscribe to participate in polls.

Join the conversation

or to participate.