Impact of AI and Automation on Employment

As per SEO.ai, 30% of the workforce worldwide fear AI replacing their jobs; in India alone, it is a staggering 74%. In the past decade, we have seen a shift in how industries operate due to AI and Automation. From assembling lines powered by robots or algorithms capable of performing complex cognitive tasks, the evolution of technology is steering a new era of productivity and innovation. While this technological advancement has brought a revelation and numerous benefits, it has also raised scathing questions about employment. Will AI and Automation eliminate jobs, or will they create new work opportunities? Let's unveil this question through this blog.

The Duality of AI and Automation
The impact of AI and Automation is twofold. While this technology has the potential to displace some jobs, it also has the capability to create new ones. Historically speaking, technological revolutions have always followed the same pattern. For instance, the technological revolution automated manual labor in agriculture but also created jobs in manufacturing and production. Similarly, the digital revolution eliminated specific clerical jobs but promoted the boom of e-commerce, the tech industry, and digital marketing.
AI and Automation are no different from these cases, although the only difference is the unpredicted progression rate and ability to impact both blue- and white-collar jobs. According to a 2023 report by the World Economic Forum, "AI is expected to displace 85 million jobs by 2025 but also create 97 million new roles."

The Most Affected Industries

1. Manufacturing

AI and Automation have been the most brutal hit in the manufacturing industry. Robots on assembly lines can perform repetitive tasks much more rapidly and precisely than humans. While this has reduced the demand for labour to perform these tasks, it has also increased the demand for professionals skilled in operating and maintaining these machines.

For example: Tesla has integrated advanced robotics into its manufacturing processes, enabling the high-speed assembly of electric vehicles. This Automation has improved the efficiency and requirement of skilled professionals who can manage and operate these robotics systems.

2. Retail and E-commerce

Automated checkout systems, AI-based inventory management, and robotic warehousing solutions are transforming the retail and e-commerce industry.

For example: Amazon has deployed thousands of robots in its fulfilment centres to assist in inventory management and order fulfilment. However, this raises alarming concerns about retail jobs.

3. Healthcare

AI-powered tools are used for diagnostics, patient monitoring, and surgical procedures. While these tools can augment healthcare professionals, they may replace administrative jobs like schedulers and medical transcriptionists.

For example: IBM's Watson Health uses AI to analyse medical data and assist healthcare professionals in diagnosing diseases.

4. Finance

Algorithms are now capable of detecting fraud, risk assessment, and even trading on stock markets. This has reduced errors and streamlined operations, but it will also impact data entry clerks and junior analysts.

For example: JP Morgan Chase utilises AI algorithms for trading and fraud detection.

5. Transportation

AI and Automation might take a few more years in this industry. But with autonomous vehicles and drones, jobs in driving and delivery services are threatened.

For example: Waymo is at the forefront of manufacturing self-driven cars, which would revitalise transportation. This technology promises an increase in safety and efficiency.

The current the impact of artificial intelligence on employment
Let's understand the current impact of AI in workspaces with some data:

1. AI implementation in businesses

According to IBM, 77% of businesses are already integrating AI into their operations or planning to do so. This means AI will impact all business horizons.

2. The role of business size

IBM's data also shows that more prominent companies are more likely to adopt AI technology than their smaller counterparts. The reason behind this discrepancy lies in the financial capacity of larger organisations, which require more resources to manage their work.

3. IT professionals are dominating the field.

Unsurprisingly, IT professionals are at the forefront of using AI Technologies for their day-to-day tasks. 54% of them are integrating AI into their daily tasks.

4. Wide adoption

Beyond IT professionals, AI usage is widespread. Data Engineers account for 35%, developers and data scientists for 29%, and customer service staff for 29%.

5. Adoption in different industries

Various industries have adopted AI and Automation, making them a catalyst for better operations and productivity. As per Statista's AI Adoption report, Marketing and advertising are leading the way with a 37% rate of Gen AI adoption. This is followed by the technology sector at 35%, consulting at 30%, technology at 19%, healthcare at 15% and accounting at 16%

6. Improved efficiency

According to data by Snaplogic.com, 400 office workers were surveyed. 61% reported that AI has improved their efficiency and productivity, whereas 49% credited AI with improving their decision-making.

7. Improved work-life balance

Building on the same data, 51% of employees believe that AI has helped them achieve a better work-life balance.

The emergence of new roles
Although AI and Automation can displace jobs, they can also create opportunities in sectors like Data Science, ML, AI Ethics, and much more. The demand for AI-related and Automation roles is increasing exponentially.

1. AI trainers and Data Labelers

These professionals train AI by feeding it high-quality data. While this job role may diminish due to AI's advancement and self-sufficient nature, it is required for AI's current position.

2. Cyber security experts

As the integration of AI and Automation increases across all industries, the need for cyber security measures also grows. Protecting automated systems from cyber attacks is a critical issue.

3. Ethics and policy advisors

The ethical implementation of AI, such as bias in algorithms and data privacy concerns, has led to the rise of such roles. These are focused on using AI responsibly.

4. Human-machine interactive designers

While Automation Tools are becoming more prevalent, creating intuitive interfaces and seamless human-machine interactions is becoming a specialised field.

5. Green Technology roles

AI is also tackling climatic issues, which has led to the emergence of new roles in renewable, sustainable farming and resource management.

Skills Gap: A critical challenge
As AI and Automation are transforming the workforce, one of the biggest challenges is the growing skill gaps. The opportunities or jobs created by AI and Automation require advanced technical skills such as coding, data analytics, and machine learning. However, only some people displaced by AI will have the resources or knowledge to advance in these technologies. This disparity could promote inequality and leave a significant portion of the workforce unemployed. Here is how we can tackle this issue:

1. Reskilling and Upskilling inititiavtes

Governments, organisations, and education institutes must invest in programs to help employees advance these skills. For instance, companies like Amazon and AT&T have launched reskilling programs to help their employees tackle these new roles and prepare for the future.

2. Lifelong learning

The concept of lifelong learning is becoming more popular. Employees must embrace it to stay relevant in the workforce.

3. Public private partnerhsip

The collaboration between the government and organisations can ensure the training programs are aligned with the skills required.

The role of thought leadership in this transition
The transition to an AI-driven economy requires visionary leadership. Thought leadership in tech, business, and policy plays a major role in swiftly carrying out this transition. They will help maximise the benefits of AI and, at the same time, ethically regularise it. Here is how they can guide the change:

1. Promoting ethical AI

Thought leaders can advocate for responsible AI development, ensuring that these technologies benefit humanity as a whole.

2. Inclusive growth

By promoting policies that encourage equality and diversity, these leaders can ensure that the benefits of AI are distributed equally.

3. Innovation

This is the time to inculcate new ideas and explore the possibility of AI. For instance, who would have thought AI would help with climatic issues globally?

4. Policies and regulations

PolicymakersPolicymakers who are driven by thought leadership can create frameworks that balance innovation with accountability and ensuring balance innovation with accountability and ensure that AI technology is used responsibly.

AI and future of work: How do we prepare?
To thrive in an AI economy, what proactive steps must individuals, organisations, or governments take? Let's understand:

1. For individuals

• Adapt: embrace changes and adapt new skills.
• Emotional Intelligence: Develop soft skills like communication and empathy, which are hard to automate.
• Technical literacy: Get a basic knowledge of AI and its workings, even though you are not in technical roles.

2. For organisations in talent development, Invest in reskilling and upskilling programs that will help prepare your employees for the future.

• Redefine roles: Identify how AI can augment existing roles rather than eliminate them.
• Ethical policies: Implement fair policies that ensure fair treatment of employees affected by Automation.

3. For Government

• Educational reform: Update curriculum to include AI skills as well.
• Social Safety Nets: support systems for displaced workers such as unemployment benefits or skill training programs.
• Balance: Create an environment that fosters innovation by maintaining public interest.

The Human Touch: Irreplaceable in the AI World
The narrative around AI and Automation often oscillates between the Utopian vision of prosperity and the dystopian fear of mass unemployment. However, the reality lies in between. While these technologies can drive economic growth, they can also pose significant challenges that will require careful monitoring.
Another, most overlooked aspect of the AI-human debate is the enduring value of human touch: creativity, empathy, and judgement. While machines excel at their tasks, it is impossible for humans to gain emotional intelligence. This is a sign that soft and technical skills should be inculcated. Leaders with a combination of these skills can seamlessly navigate the future trends of AI.

Final Note
AI and Automation will continue to disrupt the work landscape, but this doesn't necessarily mean that we will only lose jobs. While some roles may become obsolete, new and fresh job roles will emerge with time. The key solution is for the government and organizations to invest more in upskilling and reskilling their workforce. This way, both businesses and employees can leverage AI to create a more productive, innovative, and inclusive economy.