AI May Not Steal Jobs But Instead Could Drive Greater Efficiently
AI is often perceived as a looming threat to jobs across various sectors. For example, the IMF released a report this year that pointed to AI being a possible issue for labor in the near future. However, the reality may be far more nuanced. Instead of replacing human workers, AI is showing promise in making employees more efficient and enhancing productivity.
Something that Microsoft CEO, Satya Nadella, claims would be the best use for the technology. This has been highlighted in a new report from the Associated Press.
AI’s Transformation of the Workforce.
Alorica, a customer service provider based in Irvine, California, has leveraged AI to break language barriers. Using an AI-driven translation tool, Alorica allows its customer service representatives to communicate with clients in over 200 languages and 75 dialects.
For instance, a Spanish-speaking representative can assist a Cantonese-speaking customer without the need for additional language-specific hires. Despite this technological advancement, Alorica is not cutting jobs; on the contrary, it continues to hire aggressively.
AI Not A Job Killer?
This trend suggests that AI might not be the job killer many fear. Rather, it appears to function more like previous technological innovations, such as the steam engine or the internet, which eliminated some jobs but created others and boosted overall productivity.
Nick Bunker, an economist at the Indeed Hiring Lab, notes, “AI will affect many, many jobs — maybe every job indirectly to some extent. But I don’t think it’s going to lead to, say, mass unemployment.”
AI’s potential to enhance productivity rather than replace workers is further underscored by the experience of companies like IKEA. The Swedish furniture retailer introduced a customer service chatbot in 2021 to handle basic inquiries.
Instead of laying off staff, IKEA retrained 8,500 customer service employees to tackle more complex tasks. This includes providing interior design advice and resolving complicated customer issues.
AI Tools Supercharging Efficiency
Moreover, AI tools can help improve efficiency. A study by Stanford University’s Erik Brynjolfsson and MIT’s Danielle Li and Lindsey Raymond tracked 5,200 customer-support agents using a generative AI-based assistant at a Fortune 500 company.
Those using the AI assistant were found to be 14% more productive than their counterparts, with the most significant gains observed among less experienced workers. While AI does pose a threat to specific job categories, it is not leading to widespread job cuts.
What Could AI’s Impact on Labor Result In?
A study by Harvard Business School and other institutions found that job postings for writers, coders, and artists declined within eight months of the launch of OpenAI’s ChatGPT. Yet, even in these fields, AI often complements human work rather than replaces it entirely.
The White House Council of Economic Advisers recently reported “little evidence that AI will negatively impact overall employment,” highlighting that technological advancements typically drive productivity and create new job opportunities.
Supporting this view, a study led by MIT economist David Autor found that 60% of jobs held by Americans in 2018 did not exist in 1940, underscoring how technology continues to shape the workforce in unforeseen ways.
Originally posted on OpenDataScience.com
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