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Historically, widespread new technologies have often led to fears of mass unemployment. But previous innovations like the mechanisation of agriculture, the use of robots in factory work and even the internet have actually led to more growth and job opportunities, not fewer.
Will the rise of artificial intelligence be any different? In this article, we’ll discuss AI’s role in shaping the future of work, including:
- The impact on job displacement and creation
- The need for ethical guidelines on the use of AI
- Regulatory and compliance concerns
- AI’s role in driving growth and productivity
Let’s kick things off with some quick definitions.
Key definitions: automation and generative AI
Despite all of the recent hype about AI, the idea of automation is nothing new. One of the earliest examples comes from the 16th century, when an English clergyman designed a machine to speed up stocking production by automating part of the process. Since then, further examples include the industrialisation of farming in the 19th century and the increasing use of robotics in manufacturing beginning in the 1950s.
The rapid development of generative AI tools over the past few years has accelerated the automation process and expanded it to new sets of occupations. Generative AI is different from traditional AI systems in that it can identify patterns across large data sets and generate new content in a way that was previously considered uniquely human. While the technology is still in its early stages, its potential applications for the automation of key occupations are almost limitless.
Navigating challenges and opportunities: how AI will affect the future of work
Over the next few years, AI tools will radically transform the world of work we know today. Here are some of the key challenges and opportunities that tomorrow’s businesses will face as they adapt to AI.
Ensuring ethical AI use in the workplace
Companies that choose to adopt generative AI tools will need to ensure they’re used ethically and fairly. We’ve already seen a number of laws attempting to regulate the use of AI, including the European Union’s AI Act, which we’ll discuss further on. But businesses will also need to implement their own AI policies and put in place clear guidelines to ensure AI is used for good.
In 2019, the EU’s High-Level Expert Group on AI presented its Ethical Guidelines for Trustworthy Artificial Intelligence. This document consists of seven guidelines, which are intended to ensure AI tools are lawful, ethical and robust. They can be a useful resource for businesses looking to be mindful about their use of AI.
According to the EU’s guidelines, employers using AI should consider the following elements:
- Human agency and oversight: AI systems should always be overseen by humans, and should be used to empower humans to make informed decisions.
- Technical robustness and safety: AI systems should be resilient and secure, with a fallback plan in place in case something goes wrong.
- Privacy and data governance: AI systems should include adequate data governance mechanisms and ensure full respect for privacy and data protection.
- Transparency: AI systems, data and businesses should be transparent. Decisions made by AI should be explainable, and humans should always be informed when they are interacting with an AI system.
- Diversity, non-discrimination and fairness: AI systems should be designed in a way that avoids unfair bias. They should be accessible to all, regardless of disabilities or other factors.
- Societal and environmental wellbeing: AI systems should be sustainable and not cause damage to the environment.
- Accountability: AI systems should have mechanisms to ensure responsibility and accountability. Humans should be able to audit algorithms, data and design processes.
Long- and short-term implications for job roles and career paths
When we talk about the rise of AI and automation, what most people want to know is simple: will human jobs be replaced by robots? The answer is complicated: in a 2023 survey, 44% of employers said they expected AI to lead to layoffs in 2024. But in the same survey, 96% of respondents said that candidates could benefit from AI skills, and 83% agreed that having AI skills could help current employees retain their jobs.
According to the World Economic Forum, the emergence of AI technologies will ultimately create far more jobs than it displaces. This is in line with a broader historical trend: while new innovations do cause disruption, the end result is usually economic and employment growth.
However, even if the ultimate result of the AI revolution is an increase in employment, there will almost certainly be some disruption in the short term. According to a McKinsey report, up to 30% of the hours currently worked in the US could be automated by 2030 — a trend that’s been accelerated by generative AI. The most at-risk jobs are those that involve a lot of repetition, data collection and simple data processing, including customer service and office support roles.
Leveraging AI to enhance productivity and innovation
While some lower-skilled jobs may eventually be wiped out by AI, others are more likely to be enhanced by it. For example, many STEM, creative, legal and business roles will probably change to incorporate the use of ethical AI over the next few years — if they haven’t already.
In these occupations, AI has the potential to radically improve productivity and drive innovation, simply by taking on the repetitive, operational tasks that tend to take up most of our time. For example, a manager that is able to outsource administrative and reporting tasks to an AI assistant will have more time to spend on strategic thinking and coaching.
To give another example, AI is already being deployed to enhance customer service roles, which typically involve a lot of repetitive tasks. When these tasks are outsourced to an AI assistant, customer service agents have time to focus on areas where human skills are needed. According to one study by Stanford University, a Fortune 500 software firm that deployed a generative AI-based assistant for its customer support team saw productivity gains of up to 35%.
Regulatory and compliance challenges
As the use of AI continues to expand, governments and regulatory bodies will increasingly adopt legislation to ensure it is used ethically and compliantly. In Europe, the EU formally adopted its AI Act in March 2024. Referred to as the world’s first comprehensive AI law, the act aims to regulate the use of AI in EU countries, ensuring AI systems are safe, transparent, traceable, non-discriminatory and environmentally friendly.
The EU law explicitly bans certain types of AI systems, like those designed for ‘cognitive behavioural manipulation’. It classes other tools as either high, limited, or minimal risk, and applies different rules to each category. The law will be fully applicable by May 2026, though some parts will be effective sooner.
In the future, employers in Europe will need to ensure the tools they use meet the requirements of the AI Act. They’ll also have to put checks and balances in place to ensure their own use of AI is compliant. For example, the law will require companies to disclose when content has been created using an AI tool like ChatGPT and to ensure that such content complies with EU copyright law.
Other factors influencing the future of work
Of course, the AI revolution is not happening in a vacuum, and it’s just one of the factors shaping the future of work. Other important trends that businesses should be aware of include the net-zero transition, which will shift employment away from industries like oil and gas and towards green initiatives. The COVID-19 pandemic has also had a huge impact on how many of us see work, and employers are still adapting to employees’ changing expectations.
And, as we’ve discussed on this blog before, certain demographic factors like ageing populations and declining birth rates mean that employers in many countries will be dealing with huge talent shortages over the next few decades. In this context, the rise of AI becomes particularly interesting as it could be used to drive productivity, even as headcounts shrink.
Conclusion: embracing AI and automation to prepare for the future of work
The rise of AI will mean significant challenges for the future job market. But it also presents an unprecedented opportunity to drive growth and innovation through the strategic use of automation. According to PwC’s Global Artificial Intelligence Study, AI will lead to an estimated 26% (or $15.7 trillion) increase in GDP by 2030.
Over the next few years, businesses and governments will have to work closely together to ensure AI is used fairly, and that it doesn’t increase and worsen existing inequalities. Since the most at-risk jobs are disproportionately held by women and people of colour, they’ll have to put in place initiatives to help these vulnerable employees retrain and gain the skills they need for the future of work.
Businesses that want to get ahead now should proactively embrace AI to improve the productivity and work quality of human workers. Some employees are understandably wary of the rise in AI, which employers will have to combat. But whether we like it or not, the future of work is coming — and the best employers will treat AI as a valuable tool to boost productivity and drive innovation, not a replacement for human talent.
