These days, the relationship between artificial intelligence (AI) and the future of work is both crowded and somewhat unclear.
While companies like Google and Duolingo have recently downsized their staff, suggesting that AI played a role in these decisions, the prevailing opinion among CEOs and analysts is that AI may not replace jobs but will significantly alter how tasks are performed.
A report from the HR think tank, The Burning Glass Institute, highlights the potential economic shifts as GenAI adoption increases. This shift may lead to enhanced worker productivity through automation and transformation of job responsibilities by AI. However, this boost in productivity may not align with a proportional increase in demand for goods and services, potentially leading to workforce redundancies in certain sectors. Consequently, business leaders may face tough choices, such as labor reductions, in a competitive environment with surplus labor.
The Burning Glass Institute utilized an “exposure to AI” metric to assess various industries and specific job roles, ranking mortgage agents, investment banking, financial services, finance, and purchase counsel at the top. These roles are likely to benefit from AI streamlining tasks like data analytics and market analysis.
While financial uncertainties have been attributed more to market conditions than the impact of AI, the outlook is not as pessimistic as portrayed by the Burning Glass report.
Contrary to this view, the World Economic Forum (WEF) presents a more optimistic perspective, identifying three potential effects of AI on employment. Firstly, job creation is anticipated, particularly in sectors like automotive and aerospace, where 73% of businesses foresee employment growth. Secondly, AI is expected to enhance tasks rather than fully automate them, with only a marginal 9% increase in automated administrative tasks projected over the next five years.
CEOs participating in The WEF Forum in Davos echoed these findings. L’Oreal CEO, Nicolas Hieronimus, emphasized that AI is currently generating employment opportunities, especially in data and AI-related roles. He stressed the importance of training and education to leverage AI effectively.
However, a study by Arthur J. Gallaghers revealed a lack of awareness and investment in AI among business communication professionals. Only 10% of respondents were knowledgeable about their company’s AI utilization. Ben Reynolds, the World Managing Director of Gallagher’s Communication Consulting Practice, cautioned about the haphazard adoption of AI in businesses, emphasizing the need for a structured AI strategy.
The study also indicated that with a well-defined AI strategy in place, communicators could overcome challenges related to time constraints and financial resources, which were identified as key obstacles in 2024.
