How AI will Continue to Change the Nature of Work
By Claudia Pompa*
Photo: Getty Images
Throughout history, technology and innovation have fostered changes in the workplace, especially in the intervening decades after the Industrial Revolution. However, the current technological advances in artificial intelligence (AI), and concomitant potential for massive disruption across multiple fields, sectors, and geographies, are unprecedented.
There are two major schools of thought that debate how AI might affect work in the future. On the one hand, there are those who think AI and new technologies will create new jobs as humans adapt, and on the other hand, those who think AI will destroy jobs as we may be unable to cope with the speed of change. Indeed, fast technological innovation has been responsible for both job creation and job destruction. The World Economic Forum predicts that by 2025, 85 million jobs might be displaced due to the change in division of labour between humans and machines. At the same time, 97 million new roles that are better adapted to the new division of labour between humans, machines and algorithms are also likely to emerge
As AI continues its expansion, there are large questions still looming as to exactly which jobs will be destroyed and which will be created. While highly skilled workers able to master a fast-changing technological environment will find themselves in high demand, low-skill workers face increasing competition and decreasing wages. Workers must learn to cope with a world in which AI will fundamentally change what they do and how they do it, as innovation continues to change the nature of most jobs.
However, it is important to be reminded that technological innovation does not exist in a vacuum—people are at the heart of development and implementation—and the relationship between humans and technology requires complex thinking from employers and businesses alike. Various policy and academic debates are divided on what will be the real impacts of AI—is it a real “race against the machines” as jobs are lost and income inequality rises? Could larger slowdowns in productivity growth in developed economies mean new innovations have little impact on growth? Or could algorithms augment and improve human performance in the workplace?
These differences arise from a larger debate as to what technological change actually means—are the jobs themselves destroyed or simply altered? Building the algorithms still requires labour, as does upkeep and maintenance of the technology, and new markets for these advances continue to open. While routine tasks and non-person-to-person communication in sectors like customer service are likely to be automated, those jobs that require human interaction, creativity, adaptability, discretion and social skills will be the most difficult (if not impossible) to automate.
In fact, while automation may seem inevitable to some, the ability to automate does not necessarily translate directly into practice. Employers and businesses must consider costs of developing and deploying the technology, the supply, and demand from providers and customers, and the actual labour costs themselves—abundant and cheap labour still define a large portion of the world, and compared to automation, manual labour may remain the cheaper alternative in certain sectors.
As technology augments workers’ ability to complete complex tasks, those companies and sectors with highly skilled workers will be best positioned to take advantage of these new and/or improved employment sectors. Employers and companies seeking advantage within a changing system are those that can stimulate innovation, manage and mobilise resources towards new ventures, and adapt to the new norms of competition.
*Claudia Pompa is the founder and managing director of the Consulting for Growth. She specializes in issues related to the future of work and workforce development programs and has extensive experience in digital economies, innovation, economic growth, start-ups and SMEs.
Free Event of the AI Leadership Academy
31st March 2021 @ 18.00 CET (Brussels)
AI can optimize every aspect of life. But should we?
Click here to register via Eventbrite
Biography: Alec Balasescu Ph.D. is an anthropologist by training, or as some would say a Philosopher with data. He approaches the world, and his work through the lenses of this science. Alex finished his Ph.D. at UC Irvine in 2004, and has been active in both public and private domains in various capacities while continuing to teach in different university settings, both online and in class. He lives in Frankfurt, Germany, and teaches in Victoria, BC, Canada at Royal Roads University. To know more about Alec Balasescu, Ph. D., please visit alecbalasescu.com.