Artifical Intelligence, ChatGPT & Jobs: A Conundrum For ESG Investors
6
The social impact of automation and artifical intelligence (AI) starts with jobs — as in jobs lost. According to a McKinsey study, AI could displace roughly 15% of workers (400 million people) between 2016 and 2030. In a scenario of wide AI adoption, the firm found that the share of displaced jobs could rise to as much as 30%.
Automation and artificial intelligence (AI) are rapidly contributing to economic growth, transforming businesses through substantial influence on productivity. While AI is a tool for accelerating solutions to societal issues, these technologies will undoubtedly transform the nature of work that society will have to adapt to.
While the change in workforce presents both promise and challenge, here are some of the critical issues and opportunities that policy makers, companies, and individuals will need to address.
Opportunities for Businesses, the Economy & Society
AI technologies are already generating value across sectors and the latest AI advancements promise even more. Use of AI and automation technologies can aid productivity concerns by potentially increasing productivity growth 2 percent annually over the next decade. AI is also being used in critical areas ranging from medical research to climate science.
Disruptions to Work
While about half of tasks carried out by workers could be automated, nearly all jobs will be affected in some capacity. Automation will displace some workers, but at the same time, increase demand for workers in other roles -- overall, technology has historically been a net job creator. Of all the occupations lost or added, even more will be changed as machines complement human labor.
"There is work for everyone today and there will be work for everyone tomorrow, even in a future with automation. Yet that work will be different, requiring new skills, and a far greater adaptability of the workforce than we have seen."
Key Transitions & Challenges
Automation will accelerate the shift in workforce skills. Demand for advanced technological, social, emotional, and higher cognitive skills will grow rapidly, while demand for physical and manual skills will decline. As intelligent machines and software become more integral to the workplace, workflows and workspaces will continue to evolve. Developing a labor force with the ability to learn new skills, while adapting to a new blended work environment will be critical to enabling humans and machines to work together.
Accelerating the Shift in Skills
Source: McKinsey Global Institute Workforce Skills Model; McKinsey Global Institute Analysis
Read the full McKinsey Global Institute article: AI, Automation, and the future of work: Ten things to solve for
Sources: McKinsey Global Institute, BakerAvenue