Will AI preserve Labor Day?

AI will cause 'significant disruption to the labor market' according to the Economic Forum
 Will AI preserve Labor Day?
Labor Day

Greetings to all workers on the first of May, aka Labor Day.

This year’s International Labor Day comes amid dramatic developments in the labor market across the world. Hardly any day is free from employee dismissal by major companies as a result of a stifling economic crisis in the world that forces these organizations to reduce their expenses, including engaging in mass layoffs.

Knowing all this, the question of the day arises: Will we reach a day where workers will no longer celebrate their anniversary in light of the rapid spread of what is known today as artificial intelligence?

In a study published by the World Economic Forum on Monday, global labor markets are bracing for a new era of disruption as technologies such as artificial intelligence accelerate the decline of clerical work, while at the same time increasing demand for technology and cybersecurity specialists.

Read: The magic behind the machine – Artificial intelligence in the spotlight

The study says that over the next five years, nearly a quarter of jobs will change as a result of artificial intelligence, digitalization, and other economic developments such as the green energy transition and supply chain support.

While the study predicts that AI will lead to “significant disruption to the labor market,” the net impact of most technologies will be positive over the next five years as big data analytics, management techniques, and cybersecurity become the biggest drivers of employment growth.

The advent of artificial intelligence applications such as ChatGPT, which uses machines to simulate human thinking and problem-solving, will have a particularly pronounced impact by shifting and automating many roles that involve thinking, communication, and coordination, the report said.

About 75 percent of companies surveyed said they expect to adopt AI technologies over the next five years, which they predict will eliminate up to 26 million jobs in record-keeping and administrative jobs.

The World Economic Forum study surveyed more than 800 companies that collectively employ 11.3 million workers in 45 economies around the world.

Goldman Sachs said up to 300 million full-time jobs worldwide could be automated in some way through the latest wave of artificial intelligence that has produced platforms like ChatGPT.

Goldman Sachs economists predicted in a recent report that 18 percent of work globally can be computerized, with the effects felt more deeply in advanced economies than in emerging markets.

Economists said administrative workers and lawyers were expected to be the hardest hit, compared to the “minor impact” observed on occupations requiring physical or offshore occupations, such as construction and repair work.

In the United States and Europe, nearly two-thirds of current jobs are “exposed to some degree of AI automation,” and up to a quarter of all work can be fully accomplished by AI, according to Goldman estimates.

Economists wrote that if generative AI “delivers on its promised capabilities, the labor market could face significant disruption.

While workplaces may change, the widespread adoption of AI could eventually lead to increased labor productivity — and boost global GDP by 7 percent annually over 10 years, according to Goldman Sachs.

It seems that for now, AI still poses less threat to business prospects than other macroeconomic factors such as slowing economic growth, supply shortages and inflation, but what about the future? Will we reach the day AI writes off International Workers’?

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