An intriguing recent study by economist David Autor pointed out that 60% of today’s jobs didn’t exist in 1940, signifying the adaptive nature of the job market to technological evolutions.
effects,” according to Joseph Briggs and Devesh Kodnani, who are economists at Goldman Sachs. Workplace Opportunities and Threats While generative AI’s economic contribution is shaping up to be undeniably significant, its impact on the global workforce has been a major cause for concern. McKinsey suggests that the technology could potentially automate tasks occupying 60-70% of employees’ time today. Goldman Sachs’ research indicates exposure of the equivalent of 300 million full-time jobs to automation. The big question: Will these changes lead to massive layoffs? History offers a reassuring perspective. Technological innova - tions, from the industrial revolution to the digital age, have consistently displaced certain jobs, only to create new ones. The rise of IT, for instance, brought forth roles such as digital marketing professionals and software developers. An intriguing recent study by economist David
Autor pointed out that 60% of today’s jobs didn’t exist in 1940, signifying the adaptive nature of the job market to technological evolutions. Nevertheless, the transition will not be uniform across demographics and sectors. An analysis by Pew Research Center, a think tank, published on July 26, 2023, found that higher-wage workers and those with higher educational qualifications are more exposed to AI-driven changes. Despite this, many within the exposed industries remain opti - mistic. A significant segment thinks generative AI will be more beneficial than harmful, particularly in sectors like information and technology. A New Era For all its promise, generative AI’s rapid rise isn’t devoid of challenges. The technology’s nascent stage means businesses and societies must navigate uncharted territories. Key among the challenges is ensuring the shift doesn’t exacerbate existing inequalities. As AI augments high- wage, high-education roles more
profoundly, there’s a risk of widening the socio-economic divide. Ensuring an inclusive AI-driven
economy mandates strategic investments in training and
re-skilling. It will be important to assist workers as they tran - sition between roles or adapt to AI-enhanced job environments. McKinsey notes that, if managed astutely, generative AI has the potential not just to boost economic growth, but also pave the way for a more sustainable and inclusive world. The generative AI era is akin to standing at the cusp of a new dawn. Its potential to revolutionize econ - omies is huge, promising immense growth and added value. But with great power comes great responsi - bility. As businesses integrate these advanced AI systems, a holistic approach that considers economic, societal and individual impacts will be crucial. Only then can we ensure that the AI revolution benefits all, crafting a harmonious coexistence of humans and machines.
Vision Magazine 57
October/November 2023
Powered by FlippingBook