Published February 5, 2024

Estimated read time: 4 minutes


How AI will Shape the Future of Employment

Artificial Intelligence (AI) has been making significant strides in recent years, and its impact on the workforce is already being felt. AI is estimated to replace up to 20% of all human jobs by 2030, which is a cause for concern for many. According to insights by Mckinsey & Company,  between 400 million and 800 million individuals could be displaced by automation and need to find new jobs by 2030 around the world. Furthermore, Mckinsey estimates that out of the total whose jobs were displaced, 75 million to 375 million individuals may need to switch occupational categories and learn new skills. 

AI is rapidly transforming the world of work, and its impact is not limited to blue-collar jobs. In fact, white-collar jobs, which are typically associated with professional, managerial, and administrative roles, are also at risk of being disrupted by AI due to automation. Here are some of the many sectors that could be at risk:

Administration

Administrative and clerical roles which involve a lot of repetitive tasks are likely to be impacted by AI. AI-powered software can automate routine tasks such as data entry, document management, and email processing, which can save time and increase productivity and also reduce the need for human assistants. As a result, professionals in these roles may need to develop new skills and take on more complex tasks that cannot be easily automated.

Finance

Another area where AI is expected to impact white-collar jobs is in the field of finance. AI-powered software can analyse financial data and provide insights that can help businesses make better financial decisions. This means that roles that involve financial analysis, such as accountants and financial analysts, may be impacted by AI. For example, AI-powered accounting software can automate bookkeeping tasks and financial analysis, reducing the need for human accountants. However, these professionals can also leverage AI to enhance their skills and make better decisions.

Customer Service

Another area where AI is poised to replace human jobs is customer service. AI-powered chatbots can provide 24/7 customer support, which is not possible with human customer service representatives. Moreover, AI-powered chatbots can answer customer queries in real-time, without the need for human intervention. This means that businesses can save on staffing costs and provide a better customer experience at the same time.

Where do humans stand out?

While the influence of AI on the workforce is undeniable, it is essential to note that not all jobs are at risk. Jobs that require creativity, critical thinking, emotional intelligence, high degree of human interaction and judgment are less likely to be impacted by AI. Moreover, even though some roles may be automated by AI, professionals in these roles can also use AI to enhance their skills and make better decisions which consequently will result in better productivity and judgment. 

As the workforce, what can you do?

It is essential for employees to develop new skills and abilities to remain relevant and competitive in the job market. The best and most effective way you can transform yourself is through coaching. Coaching plays a crucial role in helping employees sustain in this era of AI replacement. A skilled coach can guide employees in identifying their strengths and weaknesses, and help them develop a plan to acquire new skills and knowledge that will be in demand in the future job market. Moreover, coaching can also provide employees with the necessary support and encouragement to stay motivated and engaged in their work, even as they face the challenges of adapting to new technologies and working environments. Hence, by investing in coaching, both employees and employers can benefit from a more adaptable and resilient workforce that is better equipped to thrive in the ever-changing world of work.

Conclusion

In conclusion, AI is expected to largely impact the nature of the workplace and workforce, over the next 10 years, primarily in industries that involve routine tasks and data analysis. While these changes may lead to job loss in the short term, it is essential to note that AI will also create new jobs that require skills new skills in development and management. Furthermore, jobs that require innate human skills such as creativity, critical thinking, emotional intelligence, and judgment will be in demand more so than ever. Hence, it will be crucial for individuals and businesses to stay up-to-date with these changes and prepare themselves for a future where AI plays an increasingly significant in the workplace. 

References: https://www.mckinsey.com/featured-insights/future-of-work/jobs-lost-jobs-gained-what-the-future-of-work-will-mean-for-jobs-skills-and-wages