Industry Transformation: AI and the Threat to Employment

By: Dhania Puspa Purbasari

The increased use of artificial intelligence (AI) technology has changed the paradigm in the workplace. However, along with its benefits, the adoption of AI also raises serious questions about the future of human jobs. Through a review of recent research studies, we can better understand how AI is affecting employment today and what the implications are for the future.

One significant study is one conducted by the McKinsey Global Institute in 2019. The study found that around 15% of global jobs could be fully automated in the next few decades. While this figure does not directly depict the replacement of human jobs by AI, it does show the potentially huge impact this technology could have on the structure of employment.

Additionally, a report from the World Economic Forum in 2020 highlighted the shifting skill needs in the AI era. According to the report, technology-related skills, such as data analytics and artificial intelligence, will become increasingly important in an AI-dominated work environment. It emphasizes the importance of investments in employee training to prepare them for these changes.

Case studies from specific sectors also provide valuable insights into the impact of AI on human employment. For example, research published in the journal “Nature Machine Intelligence” in 2021 examined the use of AI systems in diagnosing skin diseases. The study found that AI systems have a high accuracy rate in diagnosing skin conditions, which raises questions about the role of human doctors in the future.

However, not all studies show a negative impact of AI on human employment. A longitudinal study conducted by Stanford University found that the adoption of AI technology in some companies improved productivity and overall performance. This research shows that while AI may replace some human jobs, it also creates new opportunities and increases efficiency in the workplace.

In the face of these challenges, the strategies taken by companies and organizations are key. A report from Deloitte on 2022 highlights the importance of developing human capital strategies that are inclusive and future-oriented. Companies need to not only take into account the adoption of AI technologies, but also the impact on employees and the overall company culture.

When we talk about the future of human work, it is important to consider the ethical aspects of AI adoption. The use of AI technologies in the work environment brings new challenges in terms of data privacy, security, and fairness. The need for strict regulations to ensure that the use of AI does not lead to discrimination or injustice in the workplace is becoming increasingly urgent.

However, while AI brings challenges and risks, it also opens up new opportunities. A report from PwC in 2023 suggests that AI has the potential to create more jobs than it eliminates. The technology enables the emergence of new sectors, such as the development and management of AI systems, which can create new jobs for people.

In this context, the role of education and training is crucial. We need to prepare future generations with the skills needed to operate in an increasingly tech-connected work environment. Schools and colleges should integrate learning about AI and related technologies into their curricula to ensure that students are prepared for future challenges.

The challenges faced by AI and human work are not simple, but with a holistic and collaborative approach, we can overcome them. Qando Qoaching provides consulting and training on business development and human capital for your institutions, organizations, and companies, we understand how important it is to understand and face these changes wisely. We need to see AI not as a threat, but as a tool to improve efficiency, productivity, and overall human well-being. By harnessing the power of AI technology wisely and responsibly, we can shape a more inclusive and sustainable future for all.

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