Artificial Intelligence and Unemployment

Introduction

Fast technological development and automatization have caused many changes in people’s lives. As soon as the industrial revolution impacted the manufacturing process, productivity skyrocketed, and corporations became major societal driving factors. However, a downside of the industrial revolution was the fast improvement of equipment that worked more efficiently, cheaply, and faster than any person could. From this perspective, the jobs that were previously executed by people were quickly replaced with machines. A similar concern correlates with the current technological development, namely artificial intelligence. Artificial intelligence (AI) is a machine’s ability to learn through certain algorithms, which creates an environment in which it can become fully autonomous and used in any industry while performing any task. There are multiple uses in which AI can be applied, including medicine, physics, the economy, and other essential areas of life. However, similarly to the development of automatization during the industrial revolution, AI may correlate with increased unemployment and further issues related to this concept. This paper argues that while artificial intelligence is an effective measure to be applied for better quality and practical work, people may lose jobs as a result of its global spread.

AI and Automatization

As mentioned prior, the current state of AI may be compared with the revolutionary automatization that has made mass production and fast and effective manufacturing possible in the previous century. Certain phenomena are relatively similar, including the fear of the unknown when it comes to the process’ impact on humankind. Yet, the perspectives to shape industries and improve them overshadows risks. It is essential to point out that, at the time, machines have partially replaced human beings since manufacturers found them to be cheaper to sustain, more proficient in operating without mistakes, and faster when it comes to production. An example is an automatization in the last half of the 21st century in the US. Researchers mention that more than 50,00 people have lost their jobs in 5 years in Youngstown, Ohio, resulting in an unprecedented number of divorces and criminal activity in the city (Su 38). This exemplifies that while unemployment caused by automatization is the driving factor, the correlating societal processes caused by a lack of jobs also have a significant impact on the area in which the incident occurs.

The unemployment caused by automatization is a documented phenomenon, and while the current job market has multiple options for individuals looking for an income, lower-skilled workers find it harder to be integrated. The same circumstances may occur due to the fast development of artificial intelligence and its wide use in all areas of life. Similar to the industrial revolution and the automatization in the last century, specific jobs are becoming less marketable. Corporations would instead invest in an automatic system with better skills and no limitations that people have in terms of lower productivity, wages, and time off. Thus, the two changes in the technological reals, the first being the industrialization through machines and the second being the revolutionary AI, may be similar in terms of effects on unemployment.

Autonomous AI vs. Limited Human Abilities

AI is a threat not only because of its limitless possibilities and ability to apply to any area and industry but also because people have certain characteristics that make it impossible for them to keep up with the power of the artificial brain. Since artificial intelligence is based on self-learning, it perceives reality, examines data, and determines solutions based on the algorithms that are input into the system. The current state of the technology industry does not allow this area to be fully integrated into every area of life, but since it is improving at a fast pace, this factor cannot be omitted. On the other hand, human limits make people more unreliable and less proficient compared to machines. People are not only limited in terms of how much they can operate but also their skills and knowledge. Even the best specialist with extensive experience in a specific area would not be able to compete with AI due to the limited abilities of the brain.

Artificial intelligence is able to constantly learn based on the input data, which already gives it limitless abilities to improve without having barriers, unlike humans. As a result, autonomous AI can succeed any expert and make the job market useless. This, however, requires time since the technology is not yet on a level that would allow every corporation to replace human beings with such autonomous systems. Nonetheless, the possibility of AI improving in the next decade is almost inevitable, which is a big risk in terms of all the jobs that will then be replaced. It is essential to refer to the amount of work one can do in a certain period of time.

An example is the job of a human resource manager, a person who has to go through multiple CVs and choose the characteristics of potential employees a company needs. Thus, this position implies data analysis and determining the most potentially effective employee for a specific organization. However, an automatic system is able to go through thousands of CVs in little time and organize the information in a way that the potential workers will fit the criteria that the company requires. As a result, the position of a human resource manager would be easily replaced by an AI that can examine extensive amounts of information and, based on an algorithm, proficiently pick the choices that align with the initial requests. The same argument may be applied to multiple other jobs, including data analysis, researchers, or even journalists. Having an AI that can examine extensive information and contribute to successful task accomplishments ultimately diminishes the need for humans to do the same job yet take more time, be less efficient, and require a monthly wage for the same amount of work.

Replaceable Skills

While artificial intelligence is not yet developed enough to take over the job market altogether, certain industries appear to be vulnerable to change faster than others. There are multiple examples that portray how AI may have a negative impact on employment and create an environment in which current workers will not be needed anymore. Thus, transportation is one of the industries that is seemingly going to suffer from significant changes that are arguably going to revolutionize supply chains, thus, changing the way corporations operate. For example, one of the biggest employers in the US, Walmart, is already operating with driverless trucks, which have not yet been fully integrated but have been successfully tested (Holland). This implies that drivers will no longer be needed based on the testing results, which is a positive factor for the company but a negative one for the employees. The company benefits since the products will safely and timely be delivered in stores, mitigating the risk of delays or other circumstances that usually correlate with a person executing the same job. However, while it may be cost-effective for the organization, multiple people who are currently working as drivers will no longer be needed.

There are various jobs that investments in AI development can cover. However, this cannot be implemented at the moment since the current technology is not at an adequate level yet. Still, there is a possibility that artificial intelligence can replace people who work as doctors, teachers, shop assistants, pilots, and other essential positions in the near future. An example would be an AI figuring out the correct diagnosis for a patient based on symptoms and tests. While at the moment, this cannot be possible without a person monitoring the process, advancements in the field can improve the situation.

Risks for Low-Skill Workers

While it is true that the development of AI is potentially risky for people of all professions, certain positions on the market are more vulnerable than others. This also correlates with the aforementioned industrialization in which laborers were replaced with much more proficient machines able to execute the same work faster and without disturbances. As exemplified, drivers are vulnerable since there are big companies already creating automatic systems that do not imply the presence of people in vehicles. Another example is customer service workers who have to either assist customers with their problems, fix an existing problem, or provide different solutions to mitigate negative customer reviews. This is a task that relies on interpersonal communication, but it does not necessarily require a human being on the other side of the line as long as an AI can deal with the difficulty.

Customer service, while practical, is expensive for companies to sustain since multiple specialists are needed if the customer base is extensive. According to researchers, experts in robotics have predicted an extensive list of professions that will not be necessary once artificial intelligence reaches its full potential (Walsh 637). This includes such professions as retail workers, cashiers, couriers, and receptionists. While executing important tasks and being the backbone of the industry where they operate, these workers are considered low-skill workers since the responsibilities do not require extensive knowledge or experience. Thus, an AI can find the rooms that a customer requests at a hotel or scan products at a supermarket. Moreover, couriers can also be replaced through automatic driving vehicles. These positions are significantly more vulnerable to being replaced through automatization compared to ones that require expert skills in a particular area, yet the job market as a whole will change once artificial intelligence is more developed.

Inequality

Now that the employees who are vulnerable to replacement have been discussed, it is essential to mention that such dispersion creates inequality in the job market. The concept also applies to the previously highlighted industrial revolution. The laborers working at factories and specializing in manual work could not find a similar job because most big companies were investing in machines that would do the same tasks yet more efficiently. As a result, the workers were left with positions that they were not familiar with. The situation may repeat itself in terms of the evolution of AI.

It may be argued that automatization in all industries will create job opportunities for individuals willing to work in IT and similar areas. However, it is reasonable to consider that multiple individuals do not have the right skills, expertise, or knowledge to acquire a position that implies proficiency in technology (Ernst et al. 6). As a result, those hired as a result of automatization will be the current experts operating in the same field. On the other hand, the low-skilled workers who used to work as drivers, cashiers, or couriers will not have an accessible job market that would align with their personal expertise. In this case, multiple individuals who, based on the new job opportunities, will have the choice to join the market by working in IT will not be qualified to do so. Thus, the argument that AI creates jobs rather than replaces them is redundant due to the fact that the jobs that it creates can merely be executed by experts with high skills and experience in the area.

Conclusion

The arguments exemplified prior are evidence that the development of artificial intelligence and its spread among the different industries offering people jobs will facilitate unemployment. Since further automatization creates an environment in which low-skilled workers are vulnerable, the changes correlate with a reform in the job market, which may result in people losing their current positions. Moreover, the industrialization of the last century, as well as the endless possibilities of AI, are direct illustrations of the need for human assistance becoming less significant. Based on these illustrations of the possibilities for negative change facilitated by artificial intelligence, it is evident that the job market that exists today with change drastically, and certain jobs will no longer require human involvement.

Works Cited

Ernst, Ekkehardt, et al. “Economics of Artificial Intelligence: Implications for the Future of Work.” IZA Journal of Labor Policy, vol. 9, no. 1, 2019, Web.

Holland, Frank. “Walmart Is Using Fully Driverless Trucks to Ramp up Its Online Grocery Business.” CNBC, CNBC, 2021, Web.

Su, Grace. “Unemployment in the AI Age.” AI Matters, vol. 3, no. 4, 2018, pp. 35–43., Web.

Walsh, Toby. “Expert and Non-Expert Opinion About Technological Unemployment.” International Journal of Automation and Computing, vol. 15, no. 5, 2018, pp. 637–642., Web.

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