Years after automation revolutionized manufacturing by transforming jobs, artificial intelligence is now poised to reshape the landscape of corporate offices, targeting even high-level positions.
Around one-third of American professionals express concern that AI could render certain jobs obsolete, with nearly half fearing they might fall behind in their careers if they fail to keep pace, according to a recent survey by Washington State University.
The results show a need for universities and companies to provide more training on the uses of generative AI programs like ChatGPT, Debbie Compeau, interim dean of WSU's Carson College of Business, told Axios.
What they're saying: "There's a lot of worry about, 'Do I have the skills to do this?'" Compeau told Axios.
"What this means for us as a college of business is we need to be out there very clearly preparing our students for using this in the workplace."
While the total number of jobs directly lost to generative AI remains relatively low, some companies have attributed layoffs to the adoption of productivity-boosting technologies like machine learning and other AI applications.
Consultants and executives predict that generative AI could soon disrupt a significant portion of white-collar jobs, including middle and high-level managerial roles.
Unlike previous automation technologies, generative AI possesses the ability to create content and synthesize ideas, essentially performing the knowledge work performed by millions of individuals behind computer screens.
This transformative technology threatens the existence of managerial positions, with corporate leaders suggesting that some roles may never return. Industries spanning from technology to chemicals are expected to undergo substantial changes as a result.
AI technology has the potential to replace or enhance critical-thinking white-collar jobs. While some job cuts are directly tied to AI advancements, others occur as companies redirect resources toward AI adoption to improve operational efficiency.
Furthermore, business leaders anticipate that AI will impact future hiring needs, with fewer new hires required as companies integrate AI into their workflows.
At chemical company Chemours, executives predict they won’t have to recruit as many people in the future.
“As the company grows, we’ll need fewer new hires as opposed to having to do a significant retrenchment,” Chief Executive Mark E. Newman told The Wall Street Journal.
Since May, over 4,600 job cuts have been attributed to AI, particularly in media and tech sectors, according to outplacement firm Challenger, Gray & Christmas. However, the actual number of AI-related job cuts is likely higher, as many companies do not explicitly attribute layoffs to AI adoption in their announcements.
Simultaneously, the adoption of generative AI among professionals has surged, with a majority of workers across various fields reporting its use at least once a week by late 2023. According to a survey by the Oliver Wyman Forum, nearly two-thirds of white-collar workers noted improved productivity as a result of incorporating generative AI into their workflows, highlighting its widespread impact on the modern workforce.
WSU Findings Reveal Apprehension
Findings from Washington State University's Carson College of Business survey, which polled 1,200 U.S. professionals, revealed that 48 percent are apprehensive about being left behind in their careers without opportunities to expand their knowledge of AI's workplace applications. Additionally, 32 percent ranked concerns about job obsolescence among their top three worries regarding AI technology.
Conducted online from Nov. 28 to Dec. 16, the WSU report mirrors findings from a previous Gallup survey, indicating escalating concerns among U.S. workers—especially those with a college education—regarding the potential obsolescence of their roles due to advancing technology.
Moreover, a recent Deloitte survey of 2,800 top executives revealed widespread unpreparedness for the transformative impacts of AI.
However, Compeau noted a noteworthy openness to AI's potential among businesses, as indicated by the survey results. Only 4 percent of respondents reported fear of AI within their organizations, with a quarter expressing enthusiasm and 30 percent describing their employers as "measured" and "cautious" regarding AI's capabilities.
Furthermore, 74 percent of surveyed professionals believe that college graduates should possess prior experience with AI upon entering the workforce.
An Alarming Estimate
Goldman Sachs reported in a sobering and alarming report last year about AI's ascendance. The investment bank estimated that 300 million jobs could be lost or diminished by this fast-growing technology.
Goldman contends automation creates innovation, which leads to new types of jobs. For companies, there will be cost savings thanks to AI. They can deploy their resources toward building and growing businesses, ultimately increasing annual global GDP by 7 percent.
Office administrative support, legal, architecture, engineering, business and financial operations, management, sales, healthcare, and art and design are among the sectors poised for automation's impact.
The convergence of substantial savings in labor costs, the emergence of new job opportunities, and enhanced productivity for unaffected workers suggests the potential for a surge in labor productivity akin to historical shifts seen with previous general-purpose technologies such as the electric motor and personal computer.
A Widening Gap in Wealth
An academic research study suggests that automation technology has been the primary catalyst for income inequality in the United States over the past four decades. Published by the National Bureau of Economic Research, the report indicates that between 50 percent to 70 percent of shifts in U.S. wages since 1980 can be linked to declines in wages among blue-collar workers who have been either replaced or marginalized by automation.
The advent of artificial intelligence, robotics, and other advanced technologies has widened the gap in wealth and income inequality significantly, a trend likely to continue accelerating. Thus far, college-educated, white-collar professionals have largely been shielded from the same economic challenges faced by their non-college-educated counterparts.
Individuals with postgraduate degrees have experienced salary increases, contrasting starkly with the significant decline observed among low-education workers. The study highlights that "The real earnings of men without a high-school degree are now 15% lower than they were in 1980."
The NBER report identifies that numerous shifts in the U.S. wage structure stem from companies automating tasks that were traditionally performed by humans. This includes the adoption of numerically controlled machinery and industrial robots in manufacturing, as well as the implementation of specialized software to replace clerical workers.
An Unprecedented Surge in Construction
Something rather curious is now happening in America -- a notable increase in capital investment is flowing into poorer communities.
Financially struggling counties, characterized by lower employment rates and median incomes below $75,000, have become focal points for a substantial portion of the massive funding directed toward clean energy projects and semiconductor mega-factories.
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