How AI Is Going to Affect Our Jobs

Many years ago, when companies started to create robots to automate processes in factories, workers started to panic: they were sure that robots would simply replace them. Now, Artificial Intelligence (AI) is raising similar concerns. From automating routine tasks to introducing entirely new job categories, these technologies are reshaping how we work and what skills are in demand. Moreover, these technologies are constantly evolving, promising even more significant transformations in the future.

Positive Impact of AI

Let’s start with the good news. Since its popularization, artificial intelligence has proved that it has its benefits. For example, it became a catalyst for job creation and transformation. AI can easily take over mundane tasks, allowing workers to focus on more creative and important tasks.

 In fields like marketing, AI tools can handle data segmentation and performance analysis, allowing marketers to focus on storytelling, brand strategy, and innovation. Even doctors can now use the help of AI to diagnose illnesses, which leaves them more time to personalize patient care. 

Analysts already predict that 69 million new jobs will be created in the next five years driven by artificial intelligence. These new roles can be better paid and might require better skills (for example, in machine learning or data analysis).

When it comes to macroeconomics, AI can enable faster decision-making and reduce operational costs, which means higher profitability for businesses, increased wages for skilled workers, and potentially shorter workweeks. 

Workplace safety is another big thing: AI-powered systems can take over dangerous tasks in sectors such as mining, manufacturing, and logistics.

Job Displacement

On the other hand, artificial intelligence’s capacity to replace human workers has profound implications for worldwide employment. According to the World Economic Forum, AI and other technologies can replace approximately 83 million jobs by 2027.

This imposes the biggest risk for those jobs that are susceptible to automation (whose tasks can easily be encoded into algorithms or performed by machines). For example, administrative roles, customer service positions, manufacturing and logistics jobs, and retail roles. Moreover, such jobs are often occupied by younger and lower-income people, which means the change will probably affect workers without higher education, immigrant communities, and those living in economically vulnerable regions.

The research from the MIT Sloan School of Management revealed that for every additional robot added per 1,000 workers in the U.S., wages fall by 0.42%. At the same time, the employment-to-population ratio decreases by 0.2 percentage points. This suggests that even modest increases in automation can exert downward pressure on wages and lead to significant job loss. 

The loss of employment can lead to profound psychological and social consequences. For instance:

• Economic insecurity (loss of healthcare or pensions).
• Mental health challenges (depression, loss of purpose, etc).
• Identity crisis. 

Interestingly, job displacement by AI can vary depending on the country. Those economies that are more developed and have an aging population might be more aggressive in adopting these changes, while developing nations may still rely on human labor (as they have lower wages and less money to invest in new technologies).

Related: How to Use AI in Your Job Search

How to Prepare For The Future?

Although it seems like the rise of AI is irreversible, there’s something we can do to make the transition as smooth as possible:

Learning new things 

To adapt to the evolving landscape, prioritize continuous learning and reskilling. This includes not only acquiring technical knowledge related to AI but also developing uniquely human ‘soft skills' such as:

• critical thinking, 
• creativity, 
• emotional intelligence, 
• complex problem-solving.

Regulating 

Governments must take action before it’s too late. They need to develop plans that include social safety nets, workforce retraining support, and other measures. 

Establishing ethical frameworks

The integration of AI raises various ethical questions about privacy, bias, and decision-making. Ensuring AI technologies are used responsibly requires the establishment of ethical frameworks and robust oversight mechanisms within workplaces and society at large.

AI is going to change the job market and automate a wide range of jobs. Since this is inevitable, we should focus on growing human potential rather than replacing it. By learning, fostering adaptable skills, and implementing thoughtful policies, society can navigate the AI revolution to build a more resilient and inclusive workforce.

Related: Top 10 Web3 Jobs That Didn’t Exist 5 Years Ago