Artificial Intelligence has been with us for a while. However, the last year has seen an acceleration in the adoption and use of AI systems. This feverish approach was kicked started by the launch of ChatGPT late last year. One conversation that took over revolved around the impact of AI on the job market.
Early in the year, a report from Goldman Sachs estimated that across the European Union and the US, 300 million jobs could be lost due to AI. The report and others were backed by the ongoing layoffs among major tech companies. Now, Nathan Brunner a labour market expert has published a report that shows it has not been an extreme doomsday scenario as originally feared.
Tech Sector Remains a Promising Industry
Despite recent tech layoffs and hiring freezes, the Bureau of Labour Statistics (BLS) maintains its confidence in the Information Technology industry. The report by Mr Brunner, the CEO of the job search platform Salarship, shows that in fact, hiring is on the rise. In the period observed, the number of unique U.S. job postings in the field increased by 1.8% compared to the same period last year. Also, writers and journalists were among those most threatened by the rise of AI use.
The perceived threat was so severe that Hollywood screenwriters held a 148-day strike. However, the BLS predicts a 4% increase in the demand for writers and authors over the next decade. This prediction sends a clear message: AI, while powerful and transformative, cannot supplant the creativity, intuition, and nuanced storytelling abilities of human writers and journalists.
“ChatGPT is a valuable tool, but it can’t replace seasoned professionals. It might enhance efficiency and simplify tasks, but human expertise and creativity remain irreplaceable” writes Mr Brunner in his report.
The current rate unemployment rate stands at 3.8%, only a slight increase from the 3.7% rate a year ago. This marginal change puts to bed early fears of an unemployment explosion.
Nathan Brunner attributes this to the current limitations of AI saying: “We better understand the limitations of generative AI, and it is clear that employers have moved from the peak of inflated expectations to the trough of disillusionment.“.
This sentiment reflects a growing awareness of the true capabilities and limitations of AI across all industries. Mr. Brunner does not completely disregard the use of AI. He says tools like ChatGPT will enhance efficiency and simplify tasks at work.
Future of AI
Perhaps the immediate threat from AI lies elsewhere. The AI sector is proving to be an enormous extractive industry. Data Centres powering AI systems are causing concerns to local communities due to their heavy water consumption.
A recent study claims the computing infrastructure required to power the sector alone could use as much energy as that of a country the size of the Netherlands in just four years. A recent study claims the computing infrastructure required to power the sector alone could use as much energy as that of a country the size of the Netherlands in just four years.
It is important to state that we are in the early days and the impact of AI might change. For example, Microsoft has just begun to roll out its Co-pilot on Windows. The intelligent assistant promises to change how we work. We are yet to experience the full force of Google in the AI space. Matt Brittin, president of Google for Europe, the Middle East and Africa recently said AI has potential for “huge breakthroughs” across industries. The tech giant which has been slow in its generative AI rollout has stated that artificial intelligence is “too important not to get right”.
