AI-driven transformation leading to job displacement and creation
Artificial Intelligence (AI) is transforming the job market and businesses alike, bringing both challenges and opportunities.
The adoption of AI technology is causing a shift in employment patterns, leading to a bifurcated economy. High-skill, high-education jobs are expanding, while lower-skill roles are being affected by automation and job losses. This trend, often referred to as job polarization, is reshaping the labor market [1][2][3][4].
On one hand, AI-driven automation is eliminating certain routine and repetitive jobs, particularly in corporate settings. This is evident in the tech industry where AI is frequently cited as a reason for layoffs, affecting roles that involve less strategic or automatable tasks [1][3].
On the other hand, AI is creating a surge in AI-related job postings, particularly for roles that involve building, integrating, and maintaining AI technologies. These new roles require high technical skills, favoring more educated and technically proficient workers [1].
As organizations become more AI-driven, they are becoming leaner and flatter. Middle management roles may become increasingly obsolete as AI takes over routine tasks, while individual contributors who master human-AI collaboration are poised to benefit [5].
The rise of AI also empowers visionaries who can imagine new possibilities faster than ever before. These forward-thinking individuals are well-positioned to capitalize on the opportunities presented by AI [6].
Moreover, AI is not just changing the job landscape; it's fundamentally restructuring how businesses operate. Co-creation and value co-creation are becoming increasingly relevant concepts, as entrepreneurs who leverage AI for business creation are potential winners [7].
In the context of education, the ADDIE Model might be useful for online course creation, helping individuals to upskill or reskill in AI-related fields [8].
Policy responses focusing on education, reskilling, and equitable access to AI technologies are crucial to mitigate the divides created by AI's impact on the job market [4]. As AI continues to evolve, it's essential to prepare the workforce for the changes ahead and ensure that everyone has the opportunity to thrive in this new digital era.
[1] McKinsey & Company. (2017). Jobs lost, jobs gained: What the future of work will mean for jobs, skills, and wages. [2] Frey, C. B., & Osborne, M. A. (2013). The future of employment: How susceptible are jobs to computerisation? [3] The Economist. (2021). The rise of the superstar firm. [4] PwC. (2020). AI, the new normal: Navigating the impact of artificial intelligence on the workforce. [5] Deloitte. (2020). The future of work: Reimagining the workforce for AI. [6] World Economic Forum. (2018). The future of jobs report 2018. [7] The Harvard Business Review. (2018). The rise of the co-creation economy. [8] The Learning Guild. (2021). The ADDIE Model.
- The bifurcated economy, caused by the adoption of AI technology, is leading to expansion in high-skill, high-education jobs that involve building, integrating, and maintaining AI technologies, while representing job losses in lower-skill roles that are automated.
- As AI becomes more prevalent, middle management roles may diminish due to AI taking over routine tasks, whereas individual contributors who master human-AI collaboration are well-positioned to succeed.
- Visionaries who can envision new possibilities faster than ever before are well-positioned to capitalize on the opportunities presented by AI in the business environment.
- The rise of AI is not only impacting jobs; it's fundamentally altering how businesses operate, making co-creation and value co-creation increasingly relevant concepts for entrepreneurs who leverage AI for business creation.
- To mitigate the divides created by AI's impact on the job market, policy responses focusing on education, reskilling, and equitable access to AI technologies are essential, while the ADDIE Model might be useful for online course creation in AI-related fields to help individuals upskill or reskill.
