Generative AI: Boon Or Bane For The Future Of Workforce?

With the ability to increase global GDP by 7% over a decade, Generative AI is poised to transform our lives and work. But its implementation may lead to the displacement of millions of workers across major economies. Are you optimistic about the potential benefits of this technology for your industry? Or do you have concerns about the possible consequences? Read on to learn more.

Updated: 5th February 2024

A recent article in the Financial Times, headed "Generative AI set to affect 300mn jobs across major economies" highlights the potential impact of generative AI on the global workforce. According to research by Goldman Sachs, generative AI systems such as ChatGPT could automate a quarter of the work done in the US and eurozone, leading to a productivity boom that could raise global GDP by 7% over a 10-year period. However, the adoption of generative AI could also result in "significant disruption" to the labour market, potentially exposing the equivalent of 300 million full-time workers across big economies to automation. Lawyers and administrative staff are among the workers at greatest risk of becoming redundant.

Generative artificial intelligence (AI) is already being used in various industries and is affecting jobs. In the healthcare industry, AI is being used to analyse patient data and help doctors make more accurate diagnoses. In the finance industry, AI is being used to detect fraud and predict market trends, and in the transportation industry, AI is being used to develop self-driving cars.

However, as with any new technology, there are understandable concerns about the impact of generative AI on the labour market. Historically, new technologies have led to the displacement of workers in certain industries. For example, the introduction of the assembly line in the early 20th century led to the displacement of workers in the manufacturing industry. In more recent times, the rise of e-commerce has led to the closure of many brick-and-mortar retail stores, resulting in job losses for retail workers.

Some experts believe that the impact of generative AI on the labour market could be even more significant than previous technological innovations. For example, Kai-Fu Lee, a leading AI expert, has said: "AI will probably replace 40% of jobs in the next 15 years." However, there are also experts who believe that AI will create new job opportunities and lead to a more efficient and productive workforce.

It's clear that there are pros and cons to the development of generative AI. As Andrew Ng, the co-founder of Google Brain, has said: "AI is the new electricity. Just as electricity transformed almost everything 100 years ago, today I have a hard time thinking of an industry that I don't think AI will transform in the next several years."

It's important to approach the development of generative AI with caution and to consider its impact on the labour market. As the World Economic Forum has noted, "governments, businesses and individuals must be proactive in managing this transformation, ensuring that everyone has access to the skills and opportunities they need to thrive in the new world of work."

Ultimately, the potential of generative AI to transform the way we live and work is immense. By investing in reskilling and retraining programs and promoting responsible AI use, we can ensure that the benefits of generative AI are realised while minimizing its negative effects.



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