Profound changes in the labor market are inevitable. Many international organizations, but also companies which work on Artificial Intelligence, stress that preparing for those changes is necessary. IBM CEO, Ginni Rometty emphasized how great is companies responsibility for how the labor market will look like in the future. She stressed that important is to focus on preparing employees for transformation and acquiring new skills required in the new economy. The impact of AI on the new economy will be significant. It’s because companies themselves willingly automate processes. That reduces costs and allow to be more competitive on the market. So they implement new solutions.
Nature of changes
Only a small number of jobs will disappear entirely because the character of such work will turn out to be easy to master for Artificial Intelligence and, in consequence, easy to automate. The rest of the jobs will change to a large extent. One often indicates that Artificial Intelligence will reduce work to do in a particular position. It will eliminate all that is repeatable and help make better decisions.
AI will cooperate with people helping them achieve more in a short time. Employees, giving AI all repeatable tasks, will be able to focus on fields which are crucial for their job (they are already doing it in some professions). Productivity will grow, and performed work will have a more positive impact on a company. The arrival of the Artificial Intelligence in the workplace will cause the creation of new occupations we don’t know about yet. It will depend on the direction, the pace of advancements in the AI, and the possibility of using it in companies.
When the labor market will change
The fact that work will change is inevitable, but how fast will it happen? McKinsey’s research, indicating profound changes by 2030, makes a distinction depending on a particular country. There are countries in which it will happen faster and others that will implement new tech solutions slower.
In countries where labor costs are higher, the willingness to automate processes will be higher, because it will contribute to significant cost savings, and increase competitiveness. In turn, in countries where jobs costs are lower, changes will occur at a slower pace. Replacing people will not be there so cost-effective. At the same time, a substantial reduction in costs in developed countries could lead companies to come back to countries they had had to leave, moving their manufacturing to maintain competitiveness. Then, in turn, developing countries will suffer significant losses.
Artificial Intelligence is already in workplaces. It transforms industries. It is certain that work will not be as it is today. A lot will change, and it is difficult to predict in which direction it will go.