Future of Work - How AI is Reshaping the Work Landscape Around the World
Generative artificial intelligence tools are replacing several types of jobs and helping businesses form new dynamics around the world.
The impact of generative AI tools is manifold from creating newer opportunities to joblessness, and from mental health challenges to job shifts.
Transitional and Transformative Trends in the Job Market
The pandemic crisis accelerated the job shifts that were taking place due to technological advancements before 2019.
An estimated 8.6 million job shifts were recorded from 2019 to 2022 due to the pandemic crisis and the need to find newer job roles.
The McKinsey Global Institute’s report suggests an estimated 12 million job shifts until 2030 will take place in the US.
Most of these job shifts come from tech and AI developments as businesses embrace the generative AI transformation.
The Impact of Generative AI Tools on Businesses and the Job Market
Generative AI tools like ChatGPT and Dall-E are reshaping the work landscape around the world. These AI tools are transforming digitization and automation altogether.
Many sectors with most types of manual tasks like food services, customer service centers, office desk support, etc. are prone to existential threats from these technologies.
A Goldman Sachs report suggests that nearly 300 million jobs could be replaced by AI tools by 2030 if these tools are capable of delivering on the promise.
More Employees Are Feeling Insecurity over Job Losses
AI isn’t the only change catalyst for the job market’s increasing woes. Other factors like the pandemic, inflation, and government investments are also playing an important role in reshaping the work landscape.
Current employees in the lower wage categories and industries affected most by automation are feeling the brunt of this transformational change.
With an aging and non-skilled labor market, the US job market will continue to see labor shortages beyond 2023 as well.
AI automation, digitization, hybrid working models, and changing political dynamics are crucial factors around the world that will make existing employees more concerned about their job security in the coming years.
AI to Boost GDPs and Jobs
Not every news about generative AI is negative. The better part of the generative AI tools and increased automation is an increased GDP value and more jobs.
The Goldman Sachs report suggested that the generative AI tools could add up to 7% of the global GDP if they live up to the promised potential.
Similarly, the joblessness due to automation and AI tools is offset by cost cuts, increased productivity, new job roles, and higher profits.
Putting it together, while AI tools pose significant threats to many business categories, there are chances of new jobs and higher GDP growths around the world too.
Mental Health Challenges
A recent phenomenon that has caught the attention of many is the mental health challenge due to changing work dynamics globally.
It started with the pandemic crisis when most employees remained housebound and had to work remotely for almost three years.
Another mental health challenge arises from shifts to AI tools and the fear of joblessness.
An APA report suggests that nearly 38% of employees are worried about the obsoleteness of their job roles or complete joblessness.
Similarly, almost 64% of employees reported they feel stressed or worried on workdays. We’ll continue to see these rising trends of mental health challenges in the coming years too.