Artificial Intelligence has many significant implications across the various organizations and aspects of society through transformative technologies. It has provided a lot of facilitations for the public like innovation, intelligent decision, advancement in efficiency, and problem-solving. On the other hand, Artificial intelligence is also playing an insignificant role because of job displacement, lack of creativity, privacy concerns, security risks, overreliance on technology, and lack of transparency.
The influence of artificial intelligence on employment is very complex in terms of job creation and job replacement. According to the report of the World Economic Forum, AI almost will replace 85 million jobs worldwide by 2025. It sounds really scary but they also explained AI will also create 97 million new jobs in the same timeframe. In the recent report of the Institute for Labor Economics, almost 1.8 million jobs have been lost due to AI in 2023, this figure increased by 15% as compared to the previous year.
If we talk about the future, AI can be uncertain because in our daily lives, it can be more advanced and integrated to solve the world’s problems and create opportunities for innovation and growth. Therefore, in shaping future AI ethics and regulations will play a crucial role. All the data will become digitized in the next twenty years which mostly AI will use for decision making and optimization. AI will replace most Blue-collar jobs and make products for minimal marginal cost. AI will take over the manufacturing, delivery, design, and marketing of the goods.
Artificial Intelligence has impacted various sectors which include Healthcare, Finance, Retail, Manufacturing, Transportation, Customer Service, and Telecommunication. AI is contributing a lot in the medical industry to the treatment of different diseases through medical image analysis and customer services have been shifted to automatic messages and responses which entry-level jobs have been replaced. AI has created an automatic inventory management system in traditional retail jobs are replaced and freelancers’ jobs almost are being replaced by AI because content writers and logo maker jobs can be performed by AI tools.
This is true that AI is replacing human jobs very fast because some tasks need to be done automatically and human error is not appreciated. Some industries are heavily relying on manual and repeated tasks so maybe some jobs are being replaced by Artificial intelligence. AI has a significant impact on process efficiency in numerous sectors that need fewer workers to do different tasks.
On the other hand, AI has created many new jobs worldwide for the development of products and services including AI specialists, data scientists, machine learning engineers, and AI ethicists. Artificial intelligence created demands for new types of jobs that may not have existed before. However, AI has many applications in which human involvement is necessary for enhancing their capabilities rather than replacing them. This combination will lead to the creation of hybrid jobs with the combination of human and AI skills. AI sometimes just reduces profits rather than replacing jobs. For example, the emergence of Uber has driven down the earnings of paid drivers without reducing the quantity of vehicles on our streets.
Due to the implication of AI may shift the demand for curtained capabilities, abilities, and skills that require problem-solving, creativity, critical thinking, and emotional intelligence are less likely to be fully automated. The human need to acquire new skills to stay in the workforce otherwise definitely their jobs will be replaced by AI or other skilled labor forces that’s why ongoing education and reskilling become very crucial. For the expansion of innovation and economic growth, AI has the potential to derive innovation, increased productivity, and growth by creating new industries and opportunities for job growth.
Artificial intelligence has some limitations including ethical concerns in terms of data privacy and its potential misuse, skills gaps that are required by emerging technology and possessed by the workforce, and job polarizations in which high skills workers have more opportunities but low skills workers may lose their jobs so, here need to design or offering new training programs, courses to secure jobs and transitions challenges to upskilling, retaining and economic inequality.
In the end, Artificial intelligence has a multifaceted impact on employment and it involves both job creation and job replacement, it depends on system and societal responsibilities which can play a crucial role in determining whether AI leads to a net positive or negative impact on employment. So, proactive measures should be taken to adapt to changes through investing in the education system, reskilling programs, and fostering a culture of continuous learning. The overall impact of AI on employment is a complex and evolving picture. AI is playing a significant role in the current state because we can obtain the most recent and accurate information that has an impact on employment and the labor market.
Disclaimer
Please note that all opinions, views, statements, and facts conveyed in the article are solely those of the author and do not necessarily represent the official policy or position of Chaudhry Abdul Rehman Business School (CARBS). CARBS assumes no liability or responsibility for any errors or omissions in the content. When interpreting and applying the information provided in the article, readers are advised to use their own discretion and judgement.
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