Generative AI and the Workforce: A Balanced Perspective on Job Creation and Displacement

Upwork, a platform that connects businesses with freelancers, suggests that AI could augment jobs rather than replace them. This perspective aligns with the findings of a Harvard Business Review article, which discusses how employees can leverage AI's evolving capabilities to enhance their performance.[1] For instance, AI can automate routine tasks, allowing employees to focus on more strategic and creative aspects of their work. This shift could lead to the creation of new roles and opportunities within organizations.

Indeed, a global employment website provides data that supports this view. Their data shows a 14% year-on-year growth in generative AI-related job postings in June. This growth indicates an increasing demand for professionals who can work with and manage AI technologies. McKinsey & Company's report on generative AI also echoes this sentiment, stating that AI and its future iterations are here to stay, and individual and organizational adaptability will be critical[2].

However, the impact of AI on employment is not solely positive. The Verge, an American technology news and media network, highlights the expansion of gig workers for low wage tagging work to train AI. This trend suggests that while AI may create high-skilled jobs, it may also contribute to the growth of low-wage, more precarious employment. This is particularly concerning given that AI has been cited as a reason for nearly 4,000 job cuts in May alone!

The implications of these findings are significant for senior decision-makers. As AI continues to evolve and permeate various sectors, it is crucial to understand its potential impacts on the workforce. This understanding can inform strategies for workforce planning, skills development, and policymaking. For instance, companies may need to invest in training programs to equip their employees with the skills needed to work with AI. Policymakers, on the other hand, may need to consider regulations to protect workers from potential job displacement due to AI.

The impact of generative AI on employment is a still a very charged and nuanced issue. While AI clearly has the potential to augment jobs and create new opportunities, it can also lead to job displacement and the growth of low-wage work. As such, it is crucial for decision-makers to navigate this landscape with a balanced and informed approach.

Sources:

[1] https://hbr.org/2023/11/helping-employees-succeed-with-generative-ai

[2] https://www.mckinsey.com/mgi/our-research/generative-ai-how-will-it-affect-future-jobs-and-workflows