The Impact of AI on Employment and the Future of Work

Introduction

Artificial intelligence is the concept of leveraging computer systems and machines to mimic human decision-making capability to enhance the effectiveness of job roles. In the Industrial Revolution, one of the basic parameters included in the places of work was the AI as a developmental tool. Artificial intelligence’s automated decision-making and problem-solving capabilities have been utilized to make better and more informed business decisions. For example, logistical delays are avoided in the supply chain industry when AI tools monitor traffic and weather conditions to optimize route selection.

Unlike traditional methods, AI helps a supply chain manager select a route with minimum traffic for faster delivery. In human resource management, the selection of candidates has been automated thanks to artificial intelligence, and all sorts of biases are eliminated. Accuracy and efficiency have been improved through its usage, making more organizations embrace it. The increased use of artificial intelligence will likely render many people jobless due to replacement, and the future of work requires additional technological qualifications.

The benefits of AI automation in industries and the service sector may not be overstated, and more companies are embracing it for accuracy and high precision. However, it is paramount to note that the advancement of technology leveraging AI poses threats to employment and the future of work (Haenlein & Kaplan, 2019). AI’s impacts on employment are multifaceted and may be viewed from two perspectives.

From the first perspective, it is likely to replace human employees, mainly when repetitive and monotonous tasks are used. On the other hand, it may create more opportunities for technology experts to help install and configure systems to solve problems in the employment realm (Webster & Ivanov, 2020). This research paper analyzes the impacts of AI on the employment field and how the future of work would be considering the widespread technology in industries.

Literature on Artificial Intelligence Adoption

Technological advancements are adopted due to their efficiency and lower production costs. Most organizations leverage artificial intelligence with the primary aim of improving precision and accuracy. Research by Goralski & Tan (2020) revealed that companies leveraging AI may not have the primary aim of replacing staff. He argues that companies do so to attain competitive advantage in the dynamic corporate realm.

However, a further study by Wang & Siau (2019) inferred that once companies realize that AI can perform better than humans and are cheaper to implement, the contemplation of replacement is conceived. As the number of companies adopting artificial intelligence increases, the employment market also falls under jeopardy. The study by Wang & Siau (2019) further posited that over 17% of the staff in China were replaced with intelligent machines and systems. Based on the findings from the three authors, it is clear that as the need for automation increases, the people who initially performed the automated roles may be jobless.

Transformation of Job Roles

The impacts of technology use in the employment realm can be understood in three prongs: job role transformation, augmentation, and industrial automation. One of the sectors where the technology may be leveraged is customer service, where people were initially used to pick up customer calls(Kong et al., 2019). A customer care assistant may only be able to serve several people in a working day.

To increase productivity, management may be forced to use AI chatbots to fulfill this role. The job role will be changed as the bots will offer better services on a 24/7 basis. Although the study by Prentice et al. (2020) indicated that introducing AI may not threaten employment opportunities, the given example contradicts the findings. The customer service assistant will have to be relocated to other jobs that cannot be automated or risk losing the job since the AI tool leveraged offers the same service more effectively, efficiently, and cheaply.

The provided case provides a perfect example of how the introduction of AI impacts employment rates. The findings by Prentice et al. (2020) are accurate because they inferred that the change in job role will lead to the AI doing the calls while the human performs the more complex roles, such as creating rapport and building client relationships.

Still, the newly created role may only be able to accommodate some of the call agents who have been replaced with the bot. This study, therefore, aligns with Howard’s findings (2019), which stated that AI makes people lose their jobs. Generally, the change in job roles facilitated by the introduction of AI is the prerequisite for people losing their jobs.

Job Augmentation

The continuous use of AI in the employment sector may lead to a revolution in the industrial realm. As competition increases in the dynamic corporate realm, management may incorporate AI to empower human capabilities and improve performance. The argument by Prentice et al. (2020) that AI creates employment is vindicated because people with basic knowledge of the tools will be prioritized. Augmentation is the process in which AI complements human capabilities and makes them more efficient (Kong et al., 2019). AI may enhance a person’s efficiency in diagnosing and treating patients in the healthcare and insurance sector.

The augmentation process will likely create more opportunities for people with particular skills in the AI industry to work more effectively. Therefore, this research infers that using AI tools jeopardizes work employment, and people either have to lose their jobs or acquire new skills in collaborating or using AIs to solve problems (Haenlein & Kaplan, 2019).

A doctor may replace a medical doctor who needs to gain the skills to use the devices with the required knowledge. The bottom line remains that people in contemporary employment must learn new skills aligned with AI to maintain their jobs. Cascading the findings by Agrawal et al. (2019) and Haenlein & Kaplan (2019), this study underscores the fact that artificial intelligence revolutionizes the employment industry and changes the future of employment. The only way to overcome technology’s negative impacts on employment is to acquire new technology.

Industrial Automation

Industrial automation is a holistic process where the repetitive, routine, and rule-based activity in the industrial realms are replaced with AI-powered objects such as robots. Research by Agrawal et al. (2019) confirmed that industrial automation has increased productivity, higher efficiency, and reduced product costs. Consequently, more companies are leveraging the technology to remain competitive. Since the AI performs the roles, those who initially do them will be replaced. In industrialization, three out of every five workers risk their jobs being performed by robots (Goralski & Tan, 2020).

As automation increases, more people will likely lose jobs and become jobless. In the human resource management field, if there is a team of managers to hire the right candidates, it may cost the organization more resources to conduct the interview and complete the selection process. However, the utilization of technology makes things easier and more efficient. As companies embrace the technologies to perform the tasks, more people are jobless.

General Impacts on Employment

The three prongs of analysis presented a broader categorization of how AI affects employment. The key contradiction is that while some studies state that it creates opportunities for those skilled in AI, the people currently working in places requiring automation may be replaced in the long run. One thing remains crystal clear from the findings of several research authors: the introduction of AI leads to job loss. The study by Prentice et al. (2020), indicating that it introduces new opportunities, must recognize that it renders people jobless.

Although companies may embrace the technology through transforming job roles, augmentation, or automation, one thing remains clear: the employees at that place will lose their jobs, and it will only require them to adopt the necessary skills to regain the job they lost previously (Abuselidze & Mamaladze, 2021). The general impact of AI on employment includes but is not limited to displaced job opportunities and increased remote working. Workers will be forced to find new jobs, and those with the necessary skills will get more opportunities to thrive.

Relations in the Findings

From the studies selected for the research, the most common relationship is that AI will change the future of work. All authors agree that any organization embracing the technology must alter its staffing needs. In automation, changing roles, and augmentation, employment is affected, and people need an alternative option for survival. For example, when repetitive tasks are performed by an AI-powered bot, the people who initially performed the role will be replaced. Generally, AI significantly impacts employment and can never be ignored.

Contradictions and Inconsistencies in Research

The research findings present several contradictions that must be cleared to understand the general impact. While research by Agrawal et al. (2019) claims that AI will lead to job loss, other research contradicts the findings of Ernst et al. (2019), who claimed that AI will likely create employment opportunities. However, such contradictions and inconsistencies inspired more holistic research, which led to an inference that the two statements may not be used to conclude. While both researchers could be trustworthy, the inconsistency was vivid. The excellent conclusion made from the contradicting viewpoints is that people must analyze the change and acquire AI skills (Goralski & Tan, 2020). When organizations implement change, employees with the skills will retain their jobs, while those without will be forced to quit in search of new opportunities.

Research Gaps

The main gaps that could be deduced from the research include the focus on industries, assessment of skills, and policy formulation. The literature provided the impact in various industries but did not cluster the challenges based on the specific clusters. For example, the customer service chatbot must clarify whether it is for the service or manufacturing sector. It is, therefore, essential to categorize the impacts of the research on industry-specific issues. The ethical consideration has also not been analyzed in the industry, such as the impacts of using AI on privacy and other societal issues (Wang & Siau, 2019). The future of employment can be understood adequately when the gaps are understood and covered through adequate research.

The Future of Work

Based on the implication of AI in the employment domain, the future of work is uncertain, and people need to be prepared. The findings by Ernst et al. (2019) are accurate about AI being an opportunity for employment for people with exclusive skills. The cognition of AI’s importance forms the prerequisite for making a better future employee. Employment in the future depends on comprehensive knowledge of AI use and collaboration.

People need to make decisions to adjust their skills to effectively work with AI to generate output because, in the future, only people with AI knowledge will be required (Howard, 2019). The requirements for employment will further evolve. In the production industries, for example, two people may be qualified engineers, but the one with additional training in AI will be considered for employment. Existing employees who need more skills must also learn it or risk being replaced by those who have acquired it.

Transformation of employment roles occurs when there is a newer and better way of performing a task. The introduction of AI has led to the transformation of roles, and people must be prepared to take the newer roles which cannot be automated. As students select professional courses or skills to train, they must train in fields that cannot be replaced with AI (Wang & Siau, 2019).

For example, counseling and community outreach roles are irreplaceable in the service industry. While the tools do data entry and analysis, there are other roles, such as content creation, that humans must do. The irreplaceable job roles will attract more people than the others that the computer may perform effectively.

The ethical and societal considerations will likely significantly impact the future of employment. The trade unions have already started lobbying for changes in laws to protect workers from being substituted (Webster & Ivanov, 2020). However, their efforts may be futile because change is inevitable in all industrial sectors and may not be prevented.

The alternative is, therefore, for people to learn more about the newest technologies and their ethical implications for regulation (Abuselidze & Mamaladze, 2021). There will be more opportunities in the societal and AI integration, and people who embrace such careers will be more relevant. For example, privacy concerns may be raised by using AI. Maintaining privacy and data confidentiality while using AI will be a competitive opportunity, and many will gain employment when they have such skills (Aghion et al., 2019). Augmentation of AI in regular job roles offers exclusive opportunities that may be utilized to offer better services for organizations.

Conclusion

The evolution in the employment realm has led to the introduction of artificial intelligence. The change is also motivated by the need for efficiency and higher productivity. However, the impacts of the new technology are multifaceted and may have both positive and negative impacts.

Although it may create employment opportunities, the basic conclusion is that it renders people jobless through a change of job role, augmentation, and automation. The contradiction of it being a source of employment can be resolved when people are encouraged to embrace technology and learn the latest ASI skills to remain relevant. Therefore, the future of work requires people to either learn how to use and segment with AI or partake in irreplaceable careers, such as counseling or building relationships.

References

Abuselidze, G., & Mamaladze, L. (2021). The impact of artificial intelligence on employment before and during pandemic: A comparative analysis. Journal of Physics: Conference Series, 1840(1), 120-140. Web.

Aghion, P., Antonin, C., & Bunel, S. (2019). Artificial intelligence, growth, and employment: The role of policy. Economics and Statistics Journal, 1(2), 150-164. Web.

Agrawal, A., Gans, J. S., & Goldfarb, A. (2019). Artificial intelligence: The ambiguous labor market impact of automating prediction. Journal of Economic Perspectives, 33(2), 31-50. Web.

Ernst, E., Merola, R., & Samaan, D. (2019). Economics of artificial intelligence: Implications for the future of work. IZA Journal of Labor Policy, 9(1). Web.

Goralski, M. A., & Tan, T. K. (2020). Artificial intelligence and sustainable development. The International Journal of Management Education, 18(1), 100-130. Web.

Haenlein, M., & Kaplan, A. (2019). A brief history of artificial intelligence: On artificial intelligence’s past, present, and future. California Management Review, 61(4), 5-14. Web.

Howard, J. (2019). Artificial intelligence: Implications for the future of work. American journal of industrial medicine, 62(11), 917-926. Web.

Kong, H., Yuan, Y., Baruch, Y., Bu, N., Jiang, X., & Wang, K. (2021). Artificial intelligence (AI) awareness influences career competency and job burnout. International Journal of Contemporary Hospitality Management, 33(2), 717-734. Web.

Prentice, C., Dominique Lopes, S., & Wang, X. (2020). Artificial intelligence and employee service quality impact customer satisfaction and loyalty. Journal of Hospitality Marketing & Management, 29(7), 739-756. Web.

Wang, W., & Siau, K. (2019). Artificial intelligence, machine learning, automation, robotics, future of work and humanity: A review and research agenda. Journal of Database Management (JDM), 30(1), 61-79. Web.

Webster, C., & Ivanov, S. (2020). Robotics, artificial intelligence, and the evolving nature of work. Springer International Publishing. Web.

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