The Impact of Artificial Intelligence on The Future of Work

For years, we've heard warnings that robots could take our jobs. And the research that says artificial intelligence (AI) might replace 300 million full-time jobs isn’t helping, is it?

However, for many people, work has appeared to go smoothly.

So, is all this hype true? Or are we finally reaching a tipping point with current AI advancements? Will AI replace humans, or will it improve and accelerate our abilities?

If you need answers to these questions, then read on!

What is AI

Before we discuss how AI will affect the future of employment, let's start with the basics: What exactly is AI? Artificial intelligence is the capability of a system like a computer or a computer-controlled robot to perform tasks that are typically done by intelligent beings.

"AI" has become a catchphrase for any developments in computing, systems, and technology in which computer programs may do jobs or solve issues that need the kind of reasoning associated with human intelligence, including learning from previous operations.

The Rise of Robotics and AI

Now, let us travel back in time to understand the history of AI and how we got to where we are today.

16th Century

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Manual labor was common in the 16th century until a priest named William Lee developed the concept of mechanizing—at least in part—the stocking-making process. He modified looms used to make carpets to create a long sheet of stocking material that could then be cut and made into stockings. It was much faster and less expensive than the standard procedure.

According to folklore, Queen Elizabeth I denied Lee's request for a patent because she was concerned about the welfare of former stocking knitters who would lose their jobs.

His machine had a limited influence, but it established the foundation for later textile machine improvements.

19th Century

Years later, English textile workers faced even more drastic changes. They weren't the only ones, either.

People moved from rural areas to the new, fast-growing metropolis as the Industrial Revolution progressed. They found work in mills and factories, where steam-powered machinery allowed hand-crafted things previously to reach unprecedented output levels.

Mechanization also posed a problem for farmworkers. As the world's population increased, machines were needed to manage everything from weeding to harvesting crops. Unfortunately, the working class did not receive the introduction of machines favorably, but nothing much could be done from their end, as automation was inevitable.

20th Century

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Towards the end of the twentieth century, the employment of robots in car manufacturing grew more frequent. Originally designed to do simple, repetitive activities, they assisted in increasing output, standardizing production quality, and controlling costs.

In 1979, Fiat ran a television commercial depicting the construction of its Strada hatchback, with the tagline "handmade by robots."

Assembly-line jobs like welding and spray painting were among the first to replace humans. The Humans were present to supervise the machines. 

As technology has progressed, the list of activities that robots can perform has grown to include more sophisticated procedures, such as installing windscreens in vehicles. They're also commonly used in factories to transport large and bulky objects.

21st Century

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Robotics and AI have grown significantly in the 21st century. Today, AI is doing jobs that were previously exclusive to humans, like creating music and making advanced medical diagnoses. 

Thanks to artificial intelligence, robots are no longer limited to manufacturing assembly lines. They are already used in customer service, healthcare, and space exploration. Even while there are worries about employment displacement, robotics and artificial intelligence appear to have huge potential to enhance human capabilities in the future, creating a more inventive, productive, and efficient world.

Effect of Artificial Intelligence on Employment

Concern over AI's potential effects on employment and the nature of work in the future is growing as these technologies continue to develop quickly. 

This section explores the potential this technological revolution brings as it digs into the complex relationship between artificial intelligence and employment.

Role Reversal

Traditionally, human workers were responsible for basic, repetitive jobs, while robots handled more sophisticated, cognitive ones. However, this relationship is changing with the introduction of AI and automation. 

AI-powered algorithms and robotic systems are increasingly capable of doing various jobs previously only performed by humans.

Industrial Revolution

AI enhances human intelligence and productivity. AI, like the machinery and factories introduced during the Industrial Revolution, is a means of production that will enable one person to do the job of many. 

AI will increase efficiency and completely transform how businesses of all sizes are formed and administered.

Efficient Job Functions

Job functions are already changing dramatically as a result of AI adoption. One million developers have already used Github copilot to generate code, forever changing the code generation process. 

In domains like financial services and law, the days of manual research are limited since collaboration between professionals and AI-native applications will streamline (and, in some cases, eliminate) bulky processes to achieve previously impossible efficiencies.

Sustainable Business Models

Generative AI will lead to huge productivity improvements and improved cost structures for all types of enterprises. Employees will be significantly more effective and productive in pursuing new levels of creativity and invention.

The infrastructure and research layer of generative AI will be critical to moving AI from hype to reality, unlocking new, sustainable business models that positively impact the world of work for both employers and employees.

AI-powered Peer-to-peer Channel

Generative AI will speed up individualized and applied learning in and out of the workplace. As courses and books become obsolete, so will linear career paths, increasing both machine-driven and peer-to-peer learning. 

GenAI will affect learning and skill development just like how YouTube, Instagram, and TikTok capitalized on the proliferation of smartphones and allowed people to share their lives through stories, 

Transformation of Decision Making

AI is transforming organizations' decision-making processes. It fuels simulations that feed insights and suggestions into commercial decisions, such as examining pricing schemes, operational ones, like optimizing routing and logistics, and even more complicated ones, like discovering design and engineering solutions to a specific brief. 

Ultimately, digital representations of businesses and powerful AIs will be capable of making decisions about companies' operations. 

Reduction of Junior and Mid-level Roles

Large language models (LLMs) have an immediate impact by dramatically lowering the number of software engineers required to construct and ship new digital products. 

Although they continue to rely heavily on their superiors, businesses are finding that they require fewer and fewer staff (such as coders and data scientists).

AI on Future of Work

Research shows that we are still far from AI being on par with human intelligence, and it might theoretically replace human employees. AI can create more employment, not fewer, if there is an investment in all sectors—anywhere that focuses on training and upskilling workers. 

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Currently, 34% of businesses employ AI, while 42% are looking into the technology.

More than half of these companies that have used AI-driven technologies say they have increased productivity.

So, how is AI impacting the different industries?

Let’s take a look.

Finance

AI is simplifying processes and increasing efficiency. It automates tasks like fraud detection and loan processing and offers individualized investment advice driven by advanced algorithms. 

AI-powered risk management solutions can recognize and reduce possible financial hazards, while algorithmic trading enables quicker and more accurate financial decision-making. However, for AI to realize its full potential in the financial industry, ethical issues with algorithm bias and the possibility of job displacement in specific industries must still be resolved.

Medical

The potential benefits of AI in medicine are actively being researched. The medical industry has a large amount of data that they may use to construct healthcare-related predictive models. In some diagnostic scenarios, AI has proven more effective than physicians. For example, the lung cancer AI system can provide a very early warning of the disease.

Automotive 

With the introduction of autonomous cars and navigation, we already see AI's impact on the automotive industry. AI will significantly affect production, particularly in the automotive industry.

Cybersecurity

In cybersecurity, AI and Machine Learning (ML) will be critical technologies for detecting and anticipating threats. Given its ability to analyze vast volumes of data and forecast and detect fraud, AI will be a crucial tool in financial security.

E-Commerce

In the future, AI will be crucial to e-commerce in many areas, including marketing, fulfillment, distribution, and user experience. We may expect artificial intelligence to play a bigger role in driving e-commerce. Examples include chatbots, shopper personalization, image-based targeting advertising, and automated warehouse and inventory management.

Hospitality and Tourism 

Although AI might automate certain jobs, such as basic guest communication and check-in procedures, it is unlikely to replace human interaction completely. Rather, we anticipate a move toward visitor personalization driven by AI. Imagine artificial intelligence (AI) using guest data to create personalized restaurant, activity, and local experience recommendations. 

AI chatbots can also respond to standard questions, allowing employees to concentrate on giving guests outstanding service and unforgettable experiences. The hotel and tourist sector will have a more prosperous and good future due to this human-AI collaboration, which will increase efficiency and tailor the visitor experience.

Job search

AI can significantly impact the job search process. An automated application tracking system can reject up to 75% of resumes before a person goes through them.

A while back, recruiters had to spend significant time sifting through resumes to find qualified applicants. Today, AI-powered systems are increasingly doing resume scanning. 67% of hiring managers said artificial intelligence made their work easier.

Employers may use artificial intelligence to process your application, such as HireVue. As a result, there's no reason why you shouldn't take advantage of similar technology like Jobscan, Jobseeker, and Rezi.

AI and machine learning are on many lists of the most important skills in the job market. In the next five years, the number of jobs requiring AI or machine learning expertise will increase by 71%. To adapt to new changes, look into some excellent free online course alternatives focusing on AI skills.

Application of Artificial Intelligence in The Workplace

Because of technology, businesses can optimize their production processes, raise workflow efficiency and safety, and boost production. In B2B sales, automation facilitates the acquisition of consumer information during the sales process, allowing for the analysis of their behaviors and the creation of tailored plans.

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According to research, nearly 73% of businesses globally prioritize AI over other digital investments to increase operational resilience. Since AI is anticipated to be extremely helpful in resolving recurring and frequent issues, this technical advancement will likely impact the services industry, most notably in finance and customer experience.

Automation can also change the way that human capital management is done. This technology allows for more objective evaluation of interviews and examination of verbal and nonverbal signs. 

It also greatly aids in making specific judgments regarding an employee's future since the environment's connectivity monitors job performance, industry pay, costs, and business tactics.

Future of AI in The Workplace

Companies must prioritize upskilling and reskilling to ensure workers have the abilities and knowledge to prosper in an AI-driven environment. Politicians also need to consider how AI can affect jobs and try to develop laws that guarantee the advantages of AI are distributed fairly.

To guarantee that AI is applied to benefit society, cooperation, and communication between business, academia, and government will ultimately be necessary to integrate AI effectively into the workplace. 

By remaining aware and proactive, we can negotiate the changes brought about by AI and create an efficient future of work.

Will AI steal my job?

Finally, back to the big question; "will AI steal my job?"

The short answer is that it might, but you'll receive a better one if you have the necessary abilities. 

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By 2030, AI will have contributed more to the global GDP than the combined output of China and India today. This growth will be sufficient to create many well-paying jobs and alter the nature of many existing jobs.

Leaders must comprehend how AI will affect their workforces and take the necessary steps to prepare it, including retraining and hiring people for the new positions that AI will require and upskilling some workers to perform current tasks using AI. 

AI-powered automation poses no threat to people, businesses, or nations with the necessary competencies. Its economic boom presents an enormous opportunity.

Final Note

The key to success in the AI future will be a systematic approach to workflow integration with machines, fine-tuning processes, and reskilling employees. As a result, companies will be in a powerful position to grow, develop, scale, and succeed.

If you are looking for ways to capitalize on AI's power for your business advantage, we are the perfect partners for you!

We are experts in helping companies utilize AI to improve workflows, increase revenue, and boost their lead generation efforts.

Schedule a demo to see how we can help your business prosper in the era of intelligent automation.