Artificial Intelligence And Work: What To Expect

Artificial Intelligence

Artificial Intelligence And Work: What To Expect

What impacts will new technologies have on professions? Research by the International Monetary Fund and the predictive study by EY, Sanoma Italia, and Manpower Group have attempted to answer this question, an increasingly widespread cause of concern. Recently, the topic of artificial intelligence, particularly the impact it will have, and is already having, on the job market, has been much discussed. 

While the results achieved with this technology and the promise of future developments generate quite a bit of enthusiasm, on the other hand, there are plenty of concerns regarding the fate of many professions. To understand what impact AI will have on Work, here are two points of view: that of the International Monetary Fund (IMF) and that of EY.

IMF Research

The International Monetary Fund conducted in-depth research to assess AI’s impact on the world of Work, and the results were “surprising.” The first significant data reveals that 40% of jobs will be influenced by Artificial Intelligence, a percentage that could rise to 60% in the most developed economies. Also, half of professions could benefit from emerging technologies like AI regarding productivity.

But there are also less promising implications; another half of the Work could see Artificial Intelligence carrying out fundamental tasks carried out by people today. This scenario could cause a decrease in labor demand, a reduction in wages, a decline in hiring, and, in the most extreme possibilities, the disappearance of some professions.

The Possible Negative Implications Of AI At Work

The markets that will suffer (or benefit) least from the entry of AI are emerging and low-income ones, where an impact of 40% and 26% is expected, respectively. This is because many countries still need to have the infrastructure and workforce necessary to fully exploit the advantages offered by new technologies, which could cause more significant disparity between nations.

As IMF Managing Director Kristalina Georgieva pointed out, we are currently at the beginning of a significant technological shift, which has the potential to bring benefits such as boosting productivity, global growth, and rising incomes in several countries. Still, it could also cause an increase in already existing inequalities. This is why Georgieva underlines the need to develop policies to safely and beneficially exploit AI’s great potential for humanity’s benefit.

EY’s Predictive Study

EY, ManpowerGroup, and Sonoma Italia have published a report, “The future of skills in the era of Artificial Intelligence,” which was developed with AI techniques and machine learning algorithms. The objective was to identify, in a predictive way, how the demand for skills and professions in Italy will change. The results are overall reassuring: the trend in labor demand will continue to show a positive sign throughout the decade, with slight slowdowns starting this year and more significant ones from 2027.

AI And Jobs Are Increasingly In Demand

The research considered 23 sectors, of which Artificial Intelligence will positively impact nine regarding increased demand. In particular, the technological sectors (such as telecommunications), chemicals, and public utilities stand out, as they are industries that include both highly qualified professions (for example, specialists in cyber security or networks and automation engineers) and more technical figures, like those engaged on the web. 

Furthermore, managerial figures, such as administration and finance directors or organization specialists, will maintain a fundamental role because AI’s impact on work models and processes  will require points of reference in companies. Then, there is another aspect to consider. 

Artificial intelligence will need professionals capable of managing it; among the most requested profiles are those skilled in designing and implementing the most advanced technologies. Finally, another professional area that will increasingly need human resources is the transformation of services and skills, including care, education, training, and Work services.

AI And Jobs That Are Increasingly In Demand

Automation will be, and already partly is, a reason for an inflection in demand for those profiles employed in repetitive activities with low intellectual content. It will be not only the least skilled professions that AI will negatively impact but also some medium-skilled jobs such as plant operators, technicians, office workers who manage data and logistics professionals as well as employees in the banking and insurance sectors, which have long since begun a significant transformation in terms of digitalization.

Even some skilled and entrepreneurial professions will suffer an inflection in demand, particularly those belonging to low-growth sectors, such as primary care. In general, the adaptability of skills represents a determining factor; if it is missing, the demand for the profile will be subject to more significant impacts. As well as the presence of a vertical specialization based on technical knowledge and skills.

What Institutions Are Called To Do

These changes require attention and thoughtful management by the education and institutional systems. Where the demand for some professions increases, training workers with the right skills is essential to avoid a talent shortage. However, where demand decreases, the workforce that cannot find space in those roles must be reabsorbed into others.

In this framework, training will have a fundamental role, starting from secondary schools, but also thanks to Artificial Intelligence, which allows courses and programs to be made more accessible and could play an essential role in resolving the mismatch between the supply and demand of Work.

Read Also: HR Marketing To Attract The Best Talent

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