AI vs. Human: How Will the Labor Market Change in the Near Future?

The rapid development of technology, especially of artificial intelligence with its incredible potential and capabilities, smoothly leads humanity to the fourth industrial revolution. AI will play a key role in it – in modernizing the global economic landscape, including the labor market. This can be compared with the industrial revolution that took place in the 19th century when technological progress completely transformed the world economy. But this time, the changes will occur ten times faster.

The modern industrial revolution which is caused by artificial intelligence is a turning point in history that will lead to radical economic change throughout the world. But experts can not agree on the type of these changes. Some claim that people are doomed and in the near future we are waiting for a total replacement of the biological mind with an artificial one in the labor market. Others, on the contrary, are confident that the labor market will simply be modernized, and the human professions will become just a little different. Well, let’s learn this rather difficult topic in more details in this article.

What jobs can AI pick up already today?

Every year, many people have a growing sense of uncertainty about the future, since very soon artificial intelligence can potentially completely replace them. First and foremost, of course, we are talking about those professions in which it is necessary to constantly perform repetitive work of the same type. Today AI already many times exceeds people in such tasks: for example, robots that work on production lines are much more efficient than people.

Also, AI chat robots are able to handle the vast majority of customer requests, so now the need for live agents has been significantly reduced. Artificial intelligence systems perform many tasks that previously needed to be handled by an administrative employee (issuing certificates, making appointments, providing information consultations, etc.).

We want to remind you:

Robot-recruiter will Select the “Right” Candidates In Job Interviews

Passenger planes that are equipped with an autopilot system can fly without the help of pilots, bartender robots can serve customers much faster than their biological “colleagues”. Similar examples can be given in almost all areas of employment.

In 2013, scientists from the University of Oxford, Carl Frey and Michael Osborne conducted a fairly large-scale study: “The Future of Employment: How Susceptible Are Jobs To Computerization”. They studied 702 professional groups and came to the conclusion that over the next 20 years, 47% of workers in the United States will lose their jobs. Already by 2030, intelligent automation systems will leave between 400 and 800 million people out of work. To remain in demand in the labor market, all these people will be forced to train for a new profession.

The positive impact that AI makes on the labor market

At first glance, it may seem that technological progress is only profitable for business owners, while ordinary people only suffer because of its rapid development. But not everything is as bad as you already thought. For example, warehouse workers at the world’s largest online store, Amazon, have benefited from automation. The fact is that after its implementation, more than 250 thousand employees significantly increased their salaries. Amazon employees claim that after the introduction of artificial intelligence systems, they have much fewer tasks and the work began to bring them much more pleasure than before. Consequently, automation can keep workers from monotonous tasks and switch their attention to performing more creative tasks that Al is unable to do yet.

Many experts believe that automation will positively affect economic growth in a global perspective. The labor market will be dominated by real “natural selection”, which in the shortest possible time will force millions of people around the world to improve their skills. In other words, technological progress will substantially restructure the labor market in the coming years. One of the possible ways to implement such a restructuring could be a significant increase in specialists in the field of AI. Even today, the demand for such vacancies considerably exceeds the supply, and this tendency is likely to continue in the future. Since technological progress is developing very rapidly, these specialists will need to constantly engage in the improvement of their skills to remain in demand.

What should company owners do?

So, what does company management need to do in order to quickly reduce the staff skills gap in the era of global digitalization?

  • At least once a year it is necessary to conduct an audit of professions within the company. Next, it is needed to compare them with the changes that occur in the market. Leading corporations of the world are already spending a huge part of their budget on employee training. For example, in IBM, this item of expense is half a billion dollars a year. CEO of the company, Virginia Rometty says, there is “skill planning” at IBM, which they review at least four times a year.
  • It is necessary to constantly monitor the professional communities in social networks, as well as attend top conferences.
  • It is important to conduct training courses for employees on an ongoing basis.
  • It is needed to engage in the training of communication skills of those professionals who organize the labor process within the company.
  • To train workers in highly specialized skills.
  • To financially motivate employees for constantly improving their skills.

Conclusion

As we already understood, technological progress brings us to a new industrial revolution, the fourth in a row. Whether artificial intelligence will be able to provide many new opportunities or, on the contrary, to take a huge number of jobs away – it is difficult to say for sure today. But now it is extremely clear that AI will make significant changes to the labor market.

For example, smart automation systems should lead to an increase in GDP, economic growth and increased demand for highly educated professionals. This will have a positive effect on the development of countries with stable economies but will have the opposite effect on the welfare of the developing countries of the world. In any case, we must be prepared for a new global economy in which artificial intelligence will play a key role.

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