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Impact_of_AI_Automation_on_Job_Market

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31 views

Impact_of_AI_Automation_on_Job_Market

Uploaded by

Munyao Justus
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Impact of AI Automation on Job Market

Introduction
Recent advances in artificial intelligence and machine automation have led many to wonder whether or
not human labour can be sustained, even though productivity has increased. Although technologies
from the Fourth Industrial Revolution, like robotics and AI, have been accessible to industry for some
time, the economic case for them has only lately begun to gain pace (Colombo et al. 2019). This is
because of developments like big data, improved computer power, machine learning, and the
decreasing cost of robots. Artificial intelligence is the simulation of human intellect in robots via a
controlled learning process (Agrawal et al. 2019). However, the danger of AI is serious since it has not
been used in any significant way in any modern industry, whether it is the car industry, advertising,
medicine, or retail. Because of this, jobs will be lost and replaced.

AI and the Job market


As more and more businesses implement automation, the efficiency, economy, and output of their
operations will all improve. The design phase might also gain from using digital twin technology, which
creates a digital duplicate of a physical thing or process and speeds up the creative process ( Frank et al.
2019). Potentially stimulating economic expansion are these outcomes and rising consumer demand for
products and a technically savvy workforce to back it up.

Research shows significant gaps in the level of automation across industries and that the impacts of this
will vary over time.

Fig. 1. Countries having the greatest economic effect from artificial


intelligence are graphically shown.

Most affected Job sectors


Sectors like financial services, where algorithms may lead to quicker and more efficient analysis and
evaluations, may feel the most immediate effects. However, in the long run, the transportation industry
may be the one to feel the most effect from the advent of autonomous driverless cars (Colombo et al.
2019). However, sectors like health that rely more heavily on social skills and the human touch may be
comparatively less impacted by new technologies. Robots and AI will play a significant role in the future
of healthcare, but they will do so primarily as complements to human caregivers rather than as
replacements for them (Lu and Zhou 2021). Our findings suggest the same is true in the field of
education.

AI will profoundly affect many services and white-collar occupations that have been protected from
automation until now. Most service-oriented jobs, including those in the medical industry, will be
eliminated as artificial intelligence becomes more widespread (Colombo et al. 2019). In addition, office
assistant and wait staff positions are among the most vulnerable to a robot takeover. Although these
professions are common in urban areas, they play an even more significant role in rural economies and
are therefore relied upon by rural residents.

Fig. 2. How AI impacts jobs

Impact of AI
In contrast to a human brain, AI software can swiftly detect issues in specific data-based contexts; this
time-saving advantage has already proven helpful in fields like healthcare, where it has been used to
improve decision-making on available treatment alternatives (Agrawal et al. 2019). Precision medicine is
a kind of machine learning used by doctors to make more accurate diagnoses. This fundamental
algorithm uses historical patient data (and supervised learning) to predict which therapeutic approaches
have the best chance of success. To help with early identification and perhaps stop the spread of
dangerous tumours, a further beneficial use of narrow AI is the deployment of more advanced deep
learning algorithms to spot suspicious lesions in radiological images (Agrawal et al. 2019). This resource
might lead to the development of new jobs by freeing doctors' and researchers' time to focus on higher-
value activities like coming up with novel approaches to patient care and studying other medical issues.

With appropriate public and commercial information, the McKinsey Global Institute (MGI) (2018)
conducted research in this field to provide forward- and backward-looking assessments of the
consequences of automation from 1980 to 2016 and from 2016 to 2020 across roughly 800 jobs. These
revolutions aim to usher in new, more efficient methods that will lead to lower operating costs, more
output, and larger profit margins (Lu and Zhou 2021). The present industrial revolution has centred on
using robots and other automated technology to replace human labour to enhance productivity while
reducing operational costs. One area where this has an immediate impact is the job market, where
automation gradually displaces human workers. The unemployment gap it has produced has caused
widespread concern among workers and government policymakers.
Fig. 3. Effects of AI on the job industry

Application of AI
For Siemens Technology Foundations, a unique machine learning application has helped improve the
efficiency of their flagship gas turbines' combustion operations (Manyika and Sneader 2018). The AI
used to create the algorithm was based on neural networks. The AI took over the combustion system
and utilised the engineers' learning sequence to run it. By lowering the turbine's emission value by 20%
in only 2 minutes, it outperformed human specialists in a series of test procedures.

Various industries, including manufacturing and agriculture, have used automated procedures for quite
some time. In spite of this, technical progress and AI development have accelerated the automation rate
in recent years (Frank et al. 2019). For example, bots or conversational AIs, computer programs
designed to simulate human conversations through text or voice channels, are becoming more popular
for automating customer care calls. This means that certain occupations are more vulnerable to
automation than others. Administrative assistants, telemarketers, data entry workers, and truck drivers
are most likely to be replaced by robots.

Conclusion
There is already evidence of automation using AI, and the rapidity of technological progress necessitates
concerted efforts to regulate the field. Technology has always been both a boon and a bane in human
work, and the many types of artificial intelligence now under development are no exception. Relief for
workers who lose their jobs due to machine learning and narrow AI may be achieved quickly via
governmental changes. Long-term policy shifts, particularly those that reward education and re-training,
are necessary to cope with the tremendous changes in the job market.

References
Agrawal, A., Gans, J.S. and Goldfarb, A., 2019. Artificial intelligence: the ambiguous labor market impact
of automating prediction. Journal of Economic Perspectives, 33(2), pp.31-50.

Colombo, E., Mercorio, F. and Mezzanzanica, M., 2019. AI meets labor market: Exploring the link
between automation and skills. Information Economics and Policy, 47, pp.27-37.

Frank, M.R., Autor, D., Bessen, J.E., Brynjolfsson, E., Cebrian, M., Deming, D.J., Feldman, M., Groh, M.,
Lobo, J., Moro, E. and Wang, D., 2019. Toward understanding the impact of artificial intelligence on
labor. Proceedings of the National Academy of Sciences, 116(14), pp.6531-6539.

Manyika, J. and Sneader, K., 2018. AI, automation, and the future of work: Ten things to solve for.

Lu, Y. and Zhou, Y., 2021. A review on the economics of artificial intelligence. Journal of Economic
Surveys, 35(4), pp.1045-1072.

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