By Rob Waugh, Tech Correspondent For Dailymail.Com
Who is vulnerable to widespread job displacement due to the AI revolution – blue-collar or white-collar workers?
The consensus among experts is that artificial intelligence will revolutionize the American workforce, a transformation already evident in the technology sector.
However, there is a debate regarding the primary targets of this disruption: low-wage earners or individuals in middle-management positions.
A study by the think-tank McKinsey Global suggests that individuals earning the lowest wages are potentially up to 14 times more likely to be substituted by AI compared to those in the highest income brackets.
Conversely, a separate report from JP Morgan anticipates a significant realignment of white-collar jobs on a mass scale within this decade.
DailyMail.com engaged with six leading experts to provide clarity amidst the conflicting perspectives.
Middle managers, Beware
According to John Warner, the founder of Innoventure, artificial intelligence will initially target roles that involve repetitive tasks, eventually progressing to replace middle managers and even professions such as law and accounting.
Warner emphasized that jobs centered around repetitive and predictable duties that can be automated face a high risk of displacement. This includes roles like assembly line work, basic data entry, and certain accounting functions.
He pointed out that positions reliant on checklists or screen inputs, like telemarketers, travel agents, bank tellers, cashiers, and loan processors, are also in jeopardy.
Moreover, Warner highlighted the impending threat to financial analysts and insurance underwriters, as AI’s data analysis capabilities and access to stored knowledge pose a challenge to roles involving extensive number-crunching.
Warner further elaborated, stating, “Numerous knowledge-based roles are in jeopardy due to AI. Many middle management positions involve receiving input, processing it, and presenting it in a different format. Automation can execute these tasks more efficiently. This trend will extend beyond middle management, with advanced AI conducting analyses that could supplant professional roles in engineering, law, accounting, and other knowledge-based fields.”
Impacted Roles: Clerical and Accounting
Martin Mulyadi, Ph.D., an Accounting Professor at Shenandoah University School of Business, cautioned that clerical and accounting positions will witness a significant decline owing to the automation of data input and basic reporting functions.
Mulyadi noted, “Roles that can be systematized or entail repetitive responsibilities are expected to bear the brunt of AI integration. For instance, the automation brought about by AI is likely to diminish the demand for various clerical positions. It is crucial to acknowledge that while AI may reduce the necessity for certain roles, it also presents new opportunities. The fields of data science, analytics, AI, and machine learning are poised for rapid expansion. In the realm of accounting, professionals equipped with an understanding of these domains are anticipated to be in high demand.”
Call Centers: An Endangered Species
Piers Linney, the founder of Implement AI, predicted the near-elimination of call centers within the next five years due to the proliferation of generative AI technology.
Linney expressed, “Generative AI will enhance productivity by augmenting human workforces and advancing technological capabilities, ultimately reducing the workforce’s size.
“For example, call centers are poised to undergo substantial automation within a five-year timeframe. Contrary to popular belief, the impact of AI won’t be limited to low-skilled roles, as the reduced requirement for costly knowledge workers presents significant cost savings. Over the next decade, a reevaluation of our education, economic, social security, and tax frameworks will be imperative.”
Customer Service in the Line of Fire
Bernard Marr, the author of ‘Generative AI in Practice,’ cautioned that AI could automate roles involving repetitive and predictable tasks across various sectors, including manufacturing, data entry, and basic customer service functions.
Marr emphasized, “AI’s advancement is poised to supplant positions entailing repetitive and foreseeable responsibilities. This shift signifies a transition towards roles necessitating human empathy, creativity, and strategic thinking.”
However, Marr reassured that programmers need not fret, stating, “Concerning programmers, the apprehension regarding AI replacing them is largely unfounded. While AI can automate specific coding tasks and even generate basic code, the role of programmers is evolving rather than diminishing. Programmers will collaborate with AI, leveraging it as a tool to enhance productivity and creativity.”
Caution for Paralegals and Researchers
Nathaniel Whittemore, the Founder of Superintelligent, highlighted that jobs involving information retrieval and synthesis are under threat from AI.
Whittemore explained, “Skills, particularly tasks, are more susceptible to obsolescence due to AI than entire occupations. Jobs will evolve to encompass different skill sets and tasks as automation replaces certain functions.
“Tasks at risk include those requiring basic research or information retrieval, spanning from entry-level customer service roles to paralegals. Roles involving data summarization and synthesis are also vulnerable.
“Nevertheless, complex challenges demanding human attention will persist, necessitating skills related to human interaction. While the number of individuals employed in these high-level roles may decrease, their expertise will be highly valued and rewarded due to the perceived importance of their skills.”
Writers and Analysts
Thomas Roulet, a Professor of Organizational Sociology and Leadership at the University of Cambridge, referenced a 2023 scientific paper indicating that mathematicians, financial analysts, and writers face the highest risk of AI displacement.
Roulet elaborated, “While mathematicians, accountants, financial analysts, writers, and news analysts are identified as most susceptible to AI replacement, these professions are likely to adapt rather than vanish. Consumers will consume news, financial analysis, or consultancy reports differently, acknowledging AI’s role in their production.”
