In Australia, the impact of artificial intelligence (AI) on employment is becoming evident, even though its consequences often remain hidden. Economists recognize the unprecedented rate at which AI is creating jobs but note that the benefits are not evenly distributed.
A case in point is Benjamin, who lost his job in wine subscription sales due to AI-related redundancies at the ASX-listed Endeavour Group. Despite the lack of public acknowledgment by the company, feedback from affected workers strongly suggests that AI played a significant role in the job cuts.
"All our jobs were replaced by chatbots, data scraping, and email. We all got AI-ed," he said, as quoted by ABC.
The challenge lies in the obscured nature of AI-related job losses, with employers attributing cuts to various factors and rarely explicitly mentioning AI. This phenomenon becomes even more concealed when job cuts manifest as reduced work hours rather than outright losses. The impact of AI extends to the casualized sectors of the labor market, where it quietly reshapes traditional roles.
In a Sydney-based ad agency, the rapid adoption of generative AI, such as ChatGPT, has led to transformative changes in workflows.
Ezra Auperle, CEO of Story Machine and Fox & Co., highlights the agency's shift away from hiring full-time writers and relying on AI for tasks like pitch creation. Auperle's businesses exemplify the transformative potential of AI, replacing contracted roles and enhancing productivity while reducing costs.
Humans Need to Adapt to The Changing Landscape
Despite individual success stories, the hidden nature of AI-related job losses creates a data issue for economists. While job growth in the AI sector currently outpaces losses, concerns persist about the swift transformation and potential displacement of workers. Economists suggest that most workers can adapt by learning new skills, but challenges remain for those left behind in the evolving job landscape shaped by AI.
Moreover, AI might affect employment beyond job substitution. Cooperation between humans and machines is a positive viewpoint as automating monotonous jobs using AI will enhance the work experience. Technology will increase job "goods" and minimize "bads," which may boost AI employment and skill needs, per TechTarget.
Shifting to a broader perspective, the European Central Bank (ECB) presented research indicating that rapid AI integration is generating employment, particularly for young and talented workers. The ECB's analysis across 16 European nations revealed that AI-exposed industries experienced increased employment, challenging concerns about its impact on the labor market. The study noted that low- and medium-skilled occupations remained unaltered, while highly-skilled occupations witnessed growth.
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Contrary to worries about AI reducing wages, the ECB research suggests "neutral to slightly negative impacts" on earnings, with the possibility of improvement over time, as previously reported by TechTimes.The study emphasizes that the full extent of AI's impact on employment, wages, growth, and equality is yet to be realized as AI technologies continue to evolve.
AI Must Be Viewed as a Tool
In understanding the complexities of AI's impact on the job market, it becomes evident that certain professions, demanding deep, expert, and uniquely human knowledge, are more resilient to disruption. Instead of viewing AI as a threat to employment, individuals are encouraged to focus on adapting and cultivating skills that AI finds challenging to replicate.
Alex Kotran, CEO of aiEDU, acknowledged the rapid changes causing genuine worries about livelihoods. However, Kotran emphasized the positive aspect of AI, asserting that, with proper training and preparation, it has the potential to augment job satisfaction and empower individuals to engage in more fulfilling work.
In essence, he views AI as a tool that, when coupled with appropriate training, can contribute to the professionalization of various occupations.
"The key is ensuring employees have basic proficiency to effectively collaborate with AI systems rather than be impacted by them. We want to give people the confidence, skills, and agency to see AI as a force multiplier, not a robot coming for their job," he remarked, as quoted by Techopedia.
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