It is widely accepted that AI systems are transforming the world as we know it. This has created worries about how AI will affect different sectors and employment around the world. Some analysts claim that too much concern has been raised, believing that AI will mechanize millions of jobs, eliminating the roles that exist today.

Others remain cautiously optimistic. For instance, almost half of the US jobs, around 47%, at risk of automation according to Carl Benedikt Frey.

Some new opportunities, particularly in the management and data analysis of AI systems, have emerged, which tend to indicate a rise rather than fall in employment suggesting the existence of a new paradox. This scenario brings forth one of the numerous questions regarding the advancement of AI technology – what happens to employment during the age of AI?

Historical Context

Now, think about the steam engine and mechanized loom. Both of these inventions transformed the industry during the industrial revolution, marking the period of the 18th and the 19th century. Along with giving us the steam engine, Britain saw transformed productivity levels with mechanized looms in the textile industry.

These gave rise to various forms of employment but also came with mass displacement of workers, leading to severe societal change. As there were large numbers of people left unsatisfied with the transformation, docile workers were termed as Luddites, standing up against the looms for fear of job loss due to automation.

The addition of computers and automation in the late 20th century allowed for new opportunities with software development and IT services. While some sectors adapted quickly and others became obsolete, one thing is clear: technology has a strange relationship with jobs as it can both displace and create at the same time.

We are now witnessing the developing wave of AI systems, which like most older technologies, are reforming the labor market. A calculation showed that the addition of a single robot per one thousand employees resulted in a 0.2% dip in the employment-to-population ratio and a wage reduction of 0.42%.

On the other hand, AI creates possibilities for shifts in responsibilities employees will have to carry out. “The Future of Jobs Report 2020” conducted by the World Economic Forum, suggests that the advancement in AI will eliminate 85 million jobs by 2025, while simultaneously creating 97 million new positions, particularly in areas like data research, AI system administration, and information technology services.

AI-Induced Job Displacement

The construction and management of AI systems has become important in the modern world. There has been an increase in the need for trained professionals in AI technologies in the US, as postings requiring AI skills have increased by 26% in services sector jobs. With the emergence of new centers for AI development, there were 1,472 job openings in Seattle alone in January for positions such as machine learning engineer and data annotation specialist.  

Profoundly bespoke teaching involves AI technologies, while diagnostic AI is used in healthcare to improve patient care services. Just like with all inventions, professionals in these positions need to alter their existing skill set to work with AI tools, incorporating domain understanding and cooperative AI skills.

AI technologies like ChatGPT and Copilot have also been integrated into the programming domain where they assist specialists with menial coding tasks, thereby enabling the professionals to shift their focus towards more strategic challenges within the industry. The application of AI technology in healthcare includes the diagnosis of patients.

Both educators and learners continue to engage with the AI systems as personal teaching assistants that tailor exercises to complete in a class or textbook setting. 

In medicine, AI is revolutionizing medical education and managing patients. For instance, Virti employs virtual reality (VR) and AI to create realistic training simulations where medical professionals can perform procedures and refine their skills risk-free.

As in education, AI adapts in tutoring systems to offer customized stratified learning for better outcomes to different students’ requirements and learning speeds.

AI as a Catalyst for Job Transformation

With the advent of AI, almost every field has seen the emergence of new AI-based industries. Improvements in technology have opened up avenues such as AI trainers, data analysts, and machine learning engineers, whose work is to build, maintain, and monitor such systems.

Moreover, jobs focusing on human-AI collaboration are on the rise. Companies like Hitachi and Texans Credit Union initiated the use of AI to facilitate onboarding new employees, and they report tremendous time and queue savings associated with the processes.

Form filling, program login, and answering new hire queries are assisted by AI and robotic process automation, which along with AI digital assistants, help relieve manpower of some menial work.

The combination of human labor and these AI systems leads to greater productivity and the development of new policies that govern the use of AI in business.

AI technologies are active in the field of medicine as they enhance the quality of patient care as well as conduct advanced research. AI-powered systems can analyze patient data for early diagnosis, suggest novel treatment plans, and even assist in surgical procedures. This incorporation to the works of practitioners improves the accuracy of diagnosis and treatment methods thanks to advanced technology.

The tutoring application of AI serves to improve the educational sector in very significant ways. AI-based tutorials are capable of tailoring lessons for every single grade level and ensure that every student masters the sophisticated idea before moving forward. This strategy addresses unique needs of learners and helps in presenting education in an innovative approach.

Economic and Social Implications

Ai technology can do some of the activities that a human being used to do, and this raises the issue of whether jobs will be lost. This kind of automation may increase economic inequality since people lacking advanced skills will have limited employment options while those with knowledge of AI and technology will gain the most.

With the development of AI systems comes the need for new skills. Many employees, however, do not feel prepared to meet this challenge. A number of workers are reluctant to use AI tools that are available because they have not been sufficiently trained or supported by their employers. This gap highlights the need for effective retraining programs designed specially for supporting AI technologies.

AI technology can improve productivity by taking care of monotonous chores, enabling you to concentrate on more sophisticated duties. On the other hand, there is worry that greater levels of automation will reduce creativity and satisfaction with work. Some employees are concerned about the impact of AI on the personal touch as well as the general enthusiasm in the workplace.

Strategies for Mitigating Negative Impacts

Systems of education need to act quickly in adjusting to modern shifts. For example, some of the top-tier universities in China have recently raised the enrollment figures for undergraduates to help widen the pool of professionals trained in AI and other strategically important fields. This effort is designed to make sure that students will have relevant skills at the time of graduation.

Similarly, the California State University system introduced ChatGPT Edu across its 23 campuses, aiming to enhance AI literacy among over 460,000 students. These initiatives focus on the growing need to encourage curriculum development AI that will foster competitiveness in the coming years.

Governments provide critical aid to people in the course of the transitions. In the U.S, there is an allotment of  $23.6 million for the battery workforce challenge, which looks to retrain people for the developing electric vehicle market.

These policies are known to promote lifelong learning, which, keeps one abreast with new innovations. Active policies directed at the labor market also include vocational education and training, and employment assistance previously associated with median earnings increases of up to 16.7%. This means that these policies are useful in meeting the needs of a changing economy.

Additionally, companies are expected to step in to assist workers in some capacity. As an example, advanced training provided by BMW and Jaguar Land Rover enables employees to master new skills, including emerging electric vehicle and digital skills, as well as high-voltage skills. This is how employees win, and how companies sharpen their competitive edge in an era of AI – through providing vital growth and development opportunities.

Conclusion

The implementation of AI technology comes with both opportunities and challenges. Numerous occupations are at risk of being fully automated, which would result in severe unemployment. Alternatively, AI systems are capable of redefining numerous job functions and creating new roles.

These difficulties call for an adaptation of policies related to education, government, business, industry policy, and frameworks from an approach where employment is supplanted by AI supremacy to work enhancement systems.

About The Author