Future of Work in an AI-Driven World
The impact of Artificial Intelligence (AI) on the job market has been a topic of significant discussion and research. We have already seen instances of people losing their jobs due to advancement and adoption of AI across many industries. And we have seen hiring freezes in the anticipation of the swift arrival of even more powerful AI in the near future.
Workers at all levels are worried about the future of their jobs and job security. We used to think that job loss due to “robots” would be limited to jobs that require lots of repetition that could be easily automated. Think: factory workers. We had assumed that some jobs would never be filled by robots/AI because these positions “clearly” required a human touch: Visual art, music, film and TV, all kinds of writing, medicine, marketing, to name just a few.
And yet here we are with people in the creative arts losing their jobs, actors being “cloned,” music being generated in just minutes, books being written and illustrated entirely by AI, and even doctors using AI to diagnose disease.
How is AI reshaping employment landscapes across different sectors? Here are some examples::
Direct Job Losses Attributed to AI:
- In May 2023, AI was directly responsible for 3,900 job losses in the United States, accounting for 5% of all job losses during that month. This placed AI as the seventh-largest contributor to job displacement.
Impact on Specific Sectors:
- The telecommunications company British Telecom (BT) announced plans to reduce its staff by 10,000 employees over the next seven years, primarily using AI and other automation strategies.
- In the media industry, AI has replaced human staff, including two copywriters who lost their jobs because employers decided that ChatGPT could perform the job at a cheaper price. Media companies like CNET have laid off reporters while using AI to write articles.
Predictions and Surveys:
- A survey of 750 business leaders by ResumeBuilder found that 37% reported AI had replaced workers in their organizations during 2023, and 44% anticipate layoffs in 2024 due to AI-driven efficiency gains.
- According to a report by Goldman Sachs, AI could eventually replace 300 million full-time jobs globally, affecting nearly one-fifth of employment.
High-Skilled Workers Exposure:
- Research shows that recent AI shocks leave mostly high-skilled white-collar workers highly exposed, with new generative AI posing a higher displacement potential for occupations previously considered safe from replacement.
Corporate Responses and Strategies:
- IBM announced a hiring freeze for roles that can be replaced by AI, targeting administrative-oriented back office roles and human resources, pointing out that around 26,000 workers in the company are not client-facing and could be affected.
- Chegg, an online learning company, saw a decline in revenue and loss of subscribers due to students turning to OpenAI’s ChatGPT for help, leading to a nearly 50% drop in its shares.
These examples illustrate the multifaceted impact of AI on the job market, from direct job losses and sector-specific impacts to broader predictions about the future of work. While AI is creating new opportunities and roles, it is also leading to displacement and necessitates a reevaluation of skills and roles in the evolving job market.
The fear of job loss, even without actual job displacement occurring, can have significant negative impacts on mental health:
1. Anticipatory anxiety and stress: The mere threat or possibility of losing one's job can provoke feelings of anxiety, stress, and fear in workers. This anticipatory anxiety about potential job loss takes a psychological toll even before any job loss occurs.
2. Increased depression and distress: Studies show that perceived job insecurity is associated with higher levels of psychological distress, depression, and lower life satisfaction, even for those who remain employed. The constant worry about job status acts as a chronic stressor.
3. Reduced self-esteem and confidence: The fear of job loss can undermine workers' self-esteem, self-confidence and sense of control over their circumstances. This can impact their work performance and overall well-being.
4. Physical health impacts: Perceived job insecurity has been linked to poorer self-reported physical health, more somatic symptoms like headaches and sleep disturbances, as well as increased physician visits.
5. Cyclical effects: Existing mental health issues make workers more vulnerable to fears about job security, which then exacerbates those mental health problems further, creating a vicious cycle.
In essence, the looming threat and fear of job loss acts as a chronic psychological stressor that takes a toll on emotional well-being, self-perception, personal relationships and even physical health - even if actual job displacement never occurs. Providing mental health support and interventions for job insecurity is important to mitigate these negative effects.
