Let's talk about the elephant in the room and how artificial intelligence is significantly shaking up the job market—not always in the ways we hope.
Picture this: By 2030, it is estimated that AI could affect about 40% of global jobs, with advanced economies having higher exposure (about 60%) due to their focus on more cognitive jobs.
In the next decade, generative AI could expose the equivalent of 300 million full-time jobs to automation, according to a Goldman Sachs study released last year. These figures underscore the urgency and magnitude of the impact AI is poised to have on employment and business overall.
But while we often hear about the risks and ethical dilemmas of AI, let's not forget it's also creating new opportunities and transforming old job roles. AI is expected to replace 16% of American jobs by 2025, but it could also create 58 million new jobs in the next few years.
The demand for AI-related skills and roles is growing faster than most companies and professionals can adapt, marking an era of a significant talent rush in AI.
Nearly three-quarters of employers prioritize hiring AI-skilled workers, yet finding such talent is challenging for 75% of them, as per an Amazon Web Services survey. Employers are willing to substantially increase pay for AI expertise, with potential salary rises between 35% and 43%, depending on the industry.
Moreover, according to my recent company's data, most remote AI jobs are available within a single country, accounting for almost 54% of the offers. This is followed by regional opportunities (around 42%), highlighting that many remote AI roles lean toward geo flexibility. It should be noted, though, that work-from-anywhere roles accounted for only 0.61% of AI-related offers.
This trend shows that despite a huge demand for AI specialists, most companies are not rushing to implement flexible approaches to their talent acquisition strategy. But will it work in the long run when new, hungry competitors win over the best talent simply by applying new, flexible approaches?
AI is revolutionizing various job roles across industries, leading to a serious shift in how tasks are approached and executed.
• AI algorithms are being employed for rapid data analysis and forecasting, reducing the need for manual data entry and calculations.
• Marketing has seen the integration of AI in customer segmentation and personalized campaign strategies.
• Tech roles, especially in software, leverage AI for code generation, testing and debugging.
Many companies have already started laying off their employees because AI could perform their jobs, and this trend is likely to continue in 2024.
• Google laid off hundreds of employees in its hardware, voice assistance and engineering departments as it continues to integrate AI and automation for cost-cutting and efficiency enhancement.
• Amazon did the same in their Prime Video and Twitch teams.
• Unity Software reduced its workforce by 25%, with approximately 1,800 job cuts, amidst its focus on AI-driven solutions.
• Duolingo cuts 10% of its contractor workforce as the company embraces AI.
These cases exemplify how AI's advancements in natural language processing and content generation can directly affect job roles, particularly in sectors where digitization and automation are rapidly evolving.
The advancement of AI is rapidly heading toward a future where AI systems are capable of creating and improving other AI systems.
This self-generative capability could lead to exponential growth in AI's sophistication and efficiency. For instance, I foresee generative AI (GenAI) allowing businesses to use it to not only automate tasks but also create new products and services.
I believe the potential for AI to design more advanced AI systems heralds a new era of technological advancement where human involvement in AI development may significantly decrease.
The development of AI is increasingly concentrated among a few major players like Microsoft, Google and Apple. This concentration could lead to a monopolization of AI technologies, limiting diversity and innovation in the field.
Large corporations have the resources to invest heavily in AI research and development, potentially overshadowing smaller players and startups. This trend might result in a less competitive market, where a handful of companies control the major advancements and applications of AI technology.
• First, I think companies should focus on developing customized AI models tailored to their specific needs rather than relying solely on general-purpose tools. This approach enhances efficiency, privacy and security.
• Next, addressing the shortage of skilled AI professionals is essential. Leaders should invest in education and training programs to build a workforce capable of developing and managing AI technologies.
• Petition and work with government entities to help develop strategies and approaches to deal with massive layoffs related to AI adoption. Implement frameworks to tackle the challenges and balance the job markets.
• Organizations should cautiously prepare for integrating generative AI, focusing on understanding their data and training their workforce to handle AI responsibly and effectively.
Eventually, it’s up to us to decide whether AI will become something we will harness for the betterment of humanity or procrastinate in our response to the possible challenges it brings to labor markets.
Source: Cofounder & Co-CEO of HR-tech startup Jobgether.
