For as long as we can remember, society has been built on the principle of value exchange. This principle implies that as humans, we trade our skills, labor, or expertise to create value that people are willing to pay for. If we understand this fundamental principle of human interaction then we will see the reason behind why a person would spend 11 years, at the very least, training to become a doctor. Now, if this principle holds true, what then happens when the very skills people spend their time cultivating become obsolete? When machines can replicate or even outperform humans at a fraction of the cost? Can we really say that those years we devoted to learning were worth it?
Artificial Inteligence
With the advent of Artificial Intelligence, these unsettling questions are no longer hypothetical but are now becoming a reality for many workers out there. According to a report by Gray & Christmas Inc., as of May 2023, AI was responsible for job losses of about 4000 Americans. Sadly, this number is expected to keep climbing with projections indicating that over 800 million people worldwide could lose their jobs to AI by 2030 (Manyika et al., 2017).
Job Postings on Freelancing Platforms Dropped By 21% Just 8 Months Following ChatGPT’s Release
While it seems that AI threatens every worker from freelancers to frontline employees and even managers, workers in some fields are experiencing its impact more acutely. According to a 2023 study on the impact of generative AI on online freelancing platforms, it was reported that job postings for jobs that were prone to automation decreased by 21% within only eight months after the introduction of ChatGPT. Freelancing jobs that took this hit included jobs that were related to either writing or programming. Similarly, the study also noted that among freelancers whose jobs were related to imaging, the introduction of AI has resulted in a 17% decline in demand for their services.
Now, as more employers are obviously turning to AI for tasks that were once handled by humans, the pressure on freelancers continues to mount. Many freelancers including writers, programmers, and graphics designers are finding themselves in a tough position trying to compete against tools that are obviously faster, cheaper, and more efficient than they are. Eventually, these freelancers find themselves struggling to keep up with the life they once lived. At this level, they fight a different enemy, “poverty.”
At Least 4 in 10 Workers Fear Job Loss to AI Within a Decade
According to a 2024 international survey by BCG X which involved 13,102 employees across 15 countries, the researchers noted that about 49% of the participants who were regular users of AI technology were anxious about their jobs. These participants reported that they feared that the rapid advancement in AI would soon render their jobs obsolete within one decade. Expectedly, this fear of job loss was more pronounced among frontline workers whose jobs often involve repetitive and easily automated tasks.
It is important to note that anxiety arising from job loss from AI or its anticipation is not merely a speculative concern, but one that is in fact well documented. Researchers Baek et al., (2022) have observed a positive correlation between anxiety arising from job loss or anticipation of job loss due to AI with insomnia and other sleep disturbances.
AI Awareness Among Employees Linked to High Rates of Depression
Similarly, another study published in the journal, Scientific Reports found that increased awareness of the potential of AI technology among employees negatively predicted their work-affective well-being. Hence, the researchers suggested that the awareness of AI’s potential to replace jobs could result in emotional exhaustion and depression among workers.
Final Thoughts
The past few years have shown that indeed AI has come to stay. But its presence has come to become something similar to a competition in which humans are in a losing battle. At least this is what the current stats we’ve explored have shown. With the increasing dependence of humans on AI, many people are finding it difficult to find decent jobs. Likewise, those who already have jobs are becoming more fearful and anxious about their position and where they stand. The result of this is an alarming increase in rates of mental health disorders like depression and anxiety in addition to poverty.
Conclusion
True, it is undeniable that AI’s introduction has transformed how we do things: jobs that took humans days/months to achieve can be done within minutes if not seconds with AI technology. However, while this novel technological advancement has brought efficiency, it will also likely cause a rise in poverty and mental illness. Something needs to be done to address these issues fast before it is too late!
FAQs
How can workers protect themselves from job loss due to AI?
Recent happenings have proven that AI has come to stay and is not going anywhere anytime soon. Hence, to protect themselves from job loss due to AI, workers will need to adapt. They can do this by focusing on reskilling and upskilling in areas where human expertise is still valuable including areas that require creative and strategic skills or emotional intelligence. Alternatively, they could also pursue certifications in courses that allow them to integrate AI into their current field.
Can AI create new job opportunities?
While we have seen that AI is expected to displace many jobs, it can also create new job opportunities in fields including AI development, robotics, cybersecurity, data science, and AI maintenance.
Will AI eliminate more jobs than it creates, leaving millions unemployed with no replacement work?
AI is killing jobs much faster than it’s creating them. Most displaced workers won’t find equivalent new roles, and many will be permanently sidelined. The economy may adapt, but not in time for millions left behind.
References
Baek, S.-U., Yoon, J.-H., & Won, J.-U. (2022). Association between Workers’ Anxiety over Technological Automation and Sleep Disturbance: Results from a Nationally Representative Survey. International Journal of Environmental Research and Public Health, 19(16), 10051. https://doi.org/10.3390/ijerph191610051
Beauchene, V., Laverdiere, R., Duranton, S., Walters, J., Lukic, V., & de Bellefonds, N. (2024, June 21). AI at Work 2024: Friend and Foe. BCG Global. https://www.bcg.com/publications/2024/ai-at-work-friend-foe
Demirci, O., Hannane, J., & Zhu, X. (2023). Who is AI Replacing? The Impact of ChatGPT on Online Freelancing Platforms. Social Science Research Network. https://doi.org/10.2139/ssrn.4602944
Jin, G., Jiang, J., & Liao, H. (2024). The work affective well-being under the impact of AI. Scientific Reports, 14(1), 1–10. https://doi.org/10.1038/s41598-024-75113-w
Manyika, J., Lund, S., Chui, M., Bughin, J., Woetzel, J., Batra, P., Ko, R., & Sanghvi, S. (2017, November 28). Jobs lost, jobs gained: What the future of work will mean for jobs, skills, and wages. McKinsey & Company. 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
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