journal article review assignment

journal article review assignment

The Impact of Artificial Intelligence on the Job Market

1. Introduction

AI and Robotics technology is only effective in replacing human work if the work can be formalized into algorithmic procedures and instructions, which can be stored in the form of a database or an application. Workers with low or medium skills are the most threatened by AI and Robotics advances because “routine work” is the easiest to be replaced. This is due to the low cost and safety compared to hiring a human worker. On the other hand, high-skilled workers are considered safe from AI and Robotics threats because they mainly deal with complex problem-solving or decision-making, which AI and Robotics have not yet reached.

AI and Robotics have successfully replaced some human work with automation and robotization. For example, in the manufacturing industry, a lot of human workers have been replaced by robotic arms to assemble cars or electronic devices. In crop cultivation, there are already tractors that can move, plow, and seed by themselves automatically. In Japan, there is an automatic cleaner for drainage channels that removes mud and rubbish.

AGI is a future market for all humans, as mentioned in Chapter 1. The development of AI and Robotics technology has been going well. However, it only affects the continuing decline of work in industries such as manufacturing, crop cultivation, or waste disposal. Many other jobs in the service and creative industries are still hard to replace with AI and Robotics.

2. Current State of the Job Market

2.3. Automation During the next phase of AI in the future (when machine learning and big data will allow technology to perform cognitive, non-routine tasks), it is likely that higher-skilled jobs will also be affected. The ability to automate cognitive tasks has a direct parallel with the replacement of physical tasks in the past. White-collar jobs such as finance, consulting, medicine, and law that consist of a series of tasks which have thus far seemed to require human intelligence can be broken down into these cognitive tasks. Machine learning is based upon detecting patterns from large amounts of data and programming AI to make decisions accordingly. Provided that sufficient data can be collected for a task, it can be replicated by a machine.

2.2. Mechanization and unskilled labor For example, in 18th-century England, the textile industry was revolutionized by the invention of the mechanical loom. The productivity gains in the cotton industry were significant through the replacement of artisans with relatively low-skilled linen weavers, with the unskilled and semi-skilled laborers that were required to assist in operating the machinery. This led to a surplus in labor from the linen industry workforce, who were forced to retrain for lower wages.

2.1. Definition of a job As with all labor-saving advancements in technology, the increased efficiency eventually leads to lower demand for human workers, causing current roles to be automated and in many cases eradicated. While new technology increases overall demand for jobs (because of the increasing wealth in the economy), it also changes the composition of jobs that exist, leading to a chasm between the demand for skilled and unskilled workers. This results in the polarization of the job market and income inequality.

Impact of artificial intelligence on jobs market

3. The Role of Artificial Intelligence in Job Automation

Artificial intelligence is almost certain to change the amount of work done by people. It is said that by 2025, the developed nations will possess a replacement rate of 25% on AI and AI-related technologies. This means that up to 25% of work done by humans could be replaced by some form of intelligent automation. We are already seeing the impact of AI on the job market. For instance, Google’s self-driving cars require no human intervention, meaning that taxi, bus, and lorry driving jobs are at risk. Various forms of AI are also being implemented in war zones. British ‘torpedo C.U.B.A’ requires no operator and has the ability to locate and destroy enemy ships. This is an ominous sign for the military personnel who could see AI weapons taking their jobs. Even the technology to produce this AI is damaging to the job market. In the UK between 2000-2010, 400,000 skilled jobs were outsourced to low-wage countries. This is due to the low-wage countries producing technology, such as computer software, and exploiting it for a cheaper cost than it would be done if the technology was produced in the origin country. This caused a significant loss of employment in the technology sector in developed nations. AI represents automation of all forms, and the automation unemployment race has already begun. The effect of AI on the job market will depend on how quickly society can adapt to the paradigm shift it will create. A study conducted by Frey and Osborne in 2013 concluded that 47% of total US employment is at risk of automation. They used a new wave of technologies as a comparison. Using data from the period 1990-2007, they saw that new IT technologies caused a significant decrease in employment in a job sector by automating tasks. High-risk jobs of automation are stated to have a 70% or higher probability of their job being automated. This includes transport and storage, manufacturing, accommodation, and food services. These are, of course, where many low-skilled and manual labor jobs lie. However, there is anecdotal evidence on how AI could be affecting the job market in a negative way before it has even been fully implemented. This is due to the concept of expectation. It is expected that AI will be able to automate a task at a cheaper cost than a human. This already means that it will be harder to enter certain job sectors, which could see a form of ‘technological unemployment’ before the task has even been automated.

4. Potential Benefits and Challenges of AI in the Job Market

It is difficult to foresee a future in which artificially intelligent systems form a significant part of the job market. As a technology, AI has become much less over-inflated in terms of expectations and promises, following a spring and summer of significant press attention. When such inflated expectations are not met, it is not uncommon for technologies to have short-term failures in terms of actual application (such as the AI winter of the 1980s), however this is not to say that technology does not progress in the long term. It is anticipated that AI will have both positive and negative impacts on the job market, eliminating some existing jobs, and creating new ones. Much has been written on automation and AI eliminating jobs in the future. Issues specific to AI include the fact that, as a technology, it is progressing rapidly and replacing human jobs with intelligent systems is an easier prospect now than it has been in the past. This could be especially true in the case of manual labor jobs, where intelligent robotic systems could take over the roles of the humans that were previously doing these jobs. Highly autonomous AI could also prove to be very effective in a business context, where intelligent systems require no salary and can work much more quickly than a human, eliminating large numbers of existing jobs in some industries. On the plus side, it is anticipated that AI will create new skilled jobs involving the building and maintenance of intelligent systems. This will be small consolation to people whose jobs become automated and will necessitate a level of education and training in the field of AI that far surpasses what would be required for the jobs that have been lost.

5. Conclusion

AI has the potential to streamline business processes and make operations significantly more efficient. Improved technology can reduce the number of people needed and the amount of time required to perform the same tasks. Additionally, AI fosters convenience. It is capable of automating repetitive tasks, which can significantly reduce employees’ workload, allowing them to focus on creative and critical thinking initiatives. Businesses that implement AI in the proper manner will have a significant advantage over promotions and deals as it increases efficiency and produces a higher quality end result at a lower cost. Unfortunately, with AI streamlining processes and improving efficiency, there is the potential for job loss. The fear of job loss from AI is a real and growing one. Business owners are aware that an investment in AI can potentially alleviate the need for more employees. As it stands, the current job market has many more people seeking employment than there are jobs available and AI will only exacerbate this situation. This will mean that the supply of labor will massively outweigh the demand for it, resulting in a decrease in wages and standards of living for many.