Artificial Intelligence (AI) has taken the world by storm in the last few years. From voice assistants like Siri and Alexa to drones, AI is changing how we live, work, and entertain. But, as with any tech advancement, there are both benefits and drawbacks. In this post, we’ll explore how AI impacts the job market and shapes the future of work.
AI is having a significant impact on the job market. World Economic Forum’s “The Future of Jobs Report 2020" predicts that AI will replace 85 million jobs globally by 2025. The same report further indicates that AI may create 97 million new roles. But, the types of jobs that AI will create will differ from those that are being lost. For example, AI is already being used to automate repetitive and mundane tasks, such as data entry and processing. This means that jobs requiring these skills will likely be automated in the future. On the other hand, machines are less likely to replace jobs requiring human skills such as problem-solving, creativity, and empathy.
AI’s impact on the job market
One example of a company that has successfully integrated AI into its business is UPS. The global shipping & logistics company has been leveraging AI to optimize its delivery routes, saving them millions in fuel costs. Using AI to analyze factors such as traffic, weather, and package volume, UPS has significantly reduced the time and distance their delivery trucks travel. This has not only saved them money but has also reduced their carbon footprint.
Another way that AI is impacting the job market is by creating new industries and business models. For example, the rise of self-driving cars has led to new businesses that use autonomous vehicles, such as ride-hailing services and delivery companies. This has created new job opportunities for people with software engineering and data analysis skills.
What does this mean for business
Businesses must identify which tasks can be automated and which cannot. This will enable them to create a strategy for adopting AI tailored to their specific needs. For example, businesses that rely heavily on data entry and processing may benefit from adopting AI to automate these tasks. Companies that require a lot of creativity and problem-solving may want to invest in training their employees in these skills. It also means enterprises that adapt to these changes avoid being left behind. For example, brick-and-mortar retailers still need to embrace e-commerce that has struggled to compete with online retailers such as Amazon.
How AI could impact the future of work
Here are a few examples of how AI could impact the future of work –
Virtual assistants in the workplace – As AI-powered virtual assistants like Siri and Alexa become more advanced, they could become increasingly common. These virtual assistants could help employees to schedule meetings, prioritize tasks, and even manage their email inboxes. By automating these time-consuming tasks, employees could have more time to focus on higher-value work that requires human skills such as creativity and problem-solving.
Predictive analytics for hiring – AI-powered predictive analytics is transforming how companies approach hiring. By analyzing data on job candidates, AI helps recruiters to identify the best candidates for a given role based on factors such as their education, work experience, and skills. This is making the hiring process more efficient and effective while reducing the potential for bias and discrimination.
Collaborative robots (cobots) – Collaborative robots, or cobots, are designed to work alongside humans rather than replace them. These robots could automate dangerous or physically taxing tasks for humans, such as lifting heavy objects or working in hazardous environments. By working alongside cobots, humans could focus on tasks that require human skills, such as critical thinking and decision-making. In this way, AI could help to create a safer, more efficient, and more productive work environment.
AI is already significantly impacting the job market, and this trend will likely continue. While AI is creating new job opportunities, it is also leading the automation of many jobs. Businesses need to be aware of these changes and adapt their strategies accordingly. To stay competitive, companies need to be willing to invest in new technologies and adapt their business models . This may mean retraining employees to work alongside AI or to hire new employees with specialized machine learning and data analysis skills.