For Keith Griffith
Experts have cautioned that artificial intelligence (AI) has the capacity to transform the job market significantly by phasing out numerous managerial and white-collar positions.
Since last May, companies have attributed 4,628 job cuts to AI, though the actual figure is believed to be much higher, as per data from outplacement firm Challenger, Gray & Christmas.
Sam Altman, the CEO of OpenAI, has been forthright in his projections about AI’s impact on the job market, foreseeing potential job eliminations.
In an interview with The Atlantic in July, Altman highlighted that many AI developers envision only positive outcomes and believe that no individuals will be displaced by AI advancements.
Altman emphasized that certain tasks will undoubtedly vanish completely due to AI integration.
White-collar layoffs associated with AI have been on the rise lately, with job reductions announced at various companies under Google’s parent entity Alphabet, Duolingo, and UPS, among others.
Andrew Challenger, the senior vice president at Challenger, Gray & Christmas, noted that the effects of rapidly advancing AI are becoming evident in various sectors, particularly Media and Tech.
He pointed out that while many layoffs are attributed to “cost-cutting,” companies are not explicitly blaming AI for these decisions, making it challenging to quantify AI’s exact role in the job cuts.
Conceptual AI programs like OpenAI’s ChatGPT are now capable of generating written and visual content at a pace comparable to human output, indicating a potential shift in knowledge-based work dynamics.
Experts anticipate that AI will swiftly replace or enhance knowledge-intensive work, akin to how automation and robotics transformed manufacturing processes.
Duolingo, a prominent language learning app, recently announced its reliance on AI for content creation, leading to a 10% reduction in its workforce.
Similarly, Google disclosed plans to lay off hundreds of employees and shift investments towards AI to streamline costs related to components and internal software.
Despite efforts to showcase AI’s productivity benefits to investors, businesses often hesitate to attribute job cuts directly to technological advancements.
In a significant move, UPS announced its largest workforce reduction in history, totaling 12,000 jobs, in early January, underlining AI’s role in cost reduction.
While initially promoting AI as a cost-saving tool, UPS later clarified that AI would not replace human employees but rather facilitate idea generation without external consultations.
A study by Princeton professor Ed Felten identified job categories most susceptible to AI-driven displacement, including roles in human resources, public relations, control experts, educators, legal professionals, financial advisors, and real estate agents.
However, the evolution of AI may also pave the way for the emergence of new job categories in the future.
The prevalence of AI in job listings has surged significantly, with over 4,000 job losses attributed to AI in May of the previous year, as reported by Challenger, Gray & Christmas.
LinkedIn data indicates a 17% increase in job postings mentioning AI or generative AI compared to those that do not reference these technologies.
Certain professions such as salon workers, firefighters, and pipelayers are deemed less susceptible to AI displacement, while roles like expenditure analysts, technical writers, and web developers face higher risks.
Occupations falling in the middle-risk category include chief executives, interior designers, and sales managers, whereas technology-driven roles like machine learning engineers, NLP scientists, software developers, and data scientists are projected to witness heightened demand.
Olivier Sabella, vice chairman of LinkedIn Talent Solutions, highlighted the escalating demand for AI expertise across diverse industries and geographies, encompassing roles ranging from AI engineers to professionals requiring AI proficiency.
