The March of AI: Concerns, Worries, and Anxiety Punctuate the Path

IMF top official says the widespread use of AI tools carries the alarming risk of “disproportionate job losses in specific sectors.”

Week after week, as we navigate the ever-evolving topography at the intersection of artificial intelligence (AI) technology and the workforce, the profound impact of AI on employment continues to remain the topic of conversation worldwide.

From the bustling tech hubs of the United States to the innovative powerhouses of China, the discussions surrounding AI’s influence on jobs are capturing the attention of individuals and industries alike.

In this week’s newsletter, I look into the world of AI-driven automation, exploring both, the potential benefits as well as the challenges it presents for workers across various industries.

Just how serious the ingress of AI in employment is can be judged from the fact that none other than a high-ranking official of the International Monetary Fund (IMF) had to issue a warning, one of the direst so far, against the rapid advancement of artificial intelligence tools. She claimed the reshaping of the labor market by the widespread implementation of AI tools carried the risk of “disproportionate job losses in specific sectors.” The IMF’s top deputy also warned that the disruptive potential of AI might rival that of the Industrial Revolution, leading to income disparities and disproportionately impacting certain job sectors.

So join me in this journey where I present the latest research on AI and thought-provoking discussions that shed light on how this new tech is revolutionizing the world of work, and simultaneously opening new avenues for innovation and collaboration.

Work, Life, Business

…and the Job Losses Continue

A monthly report by the firm “Challenger, Gray, and Christmas” revealed that in May this year, around 4,000 people lost their jobs to artificial intelligence.

The tech sector experienced a significant impact from AI, resulting in the loss of approximately 4,000 jobs. This number is part of a larger figure of around 80,000 job layoffs that occurred for various reasons during the same period.

The introduction of three prominent AI tools, namely ChatGPT by OpenAI, Bard by Google, and Bing by Microsoft has been widely adopted by companies, thereby increasing the volatility of the job market for tech workers. The report highlights that the majority of job cuts related to AI were concentrated within the tech sector.

The report indicates that these job cuts can be attributed to multiple factors such as economic conditions, cost-cutting measures, restructuring efforts, or even mergers and acquisitions. Specifically, AI was held responsible for 3,900 job cuts during the month of May. Furthermore, the report offers insights into the overall number of job cuts that have occurred in 2023 thus far.

Source: India Today

AI Could Prove as Disruptive as Industrial Revolution: IMF Official

The rapid advancement of artificial intelligence (AI) tools has raised concerns regarding its potential impact on the job market, including the potential for wage reduction and job obsolescence. A high-ranking official at the International Monetary Fund (IMF) has issued a warning, emphasizing the urgent need to protect individuals from the effects of AI by implementing regulations and preparing for potential disruptions in the labor market.

Gopinath, the IMF’s top deputy, pointed to previous instances of automation in manufacturing as evidence of technology’s ability to threaten jobs, emphasizing the importance of ensuring that those affected are matched with new productive opportunities. She further cautioned that AI could prove as disruptive as the Industrial Revolution and cautioned against the risk of certain jobs being disproportionately impacted, thereby widening the gap between high- and low-paying positions within the economy.

To mitigate the adverse effects of AI on employment and prevent social upheaval, Gopinath suggested the implementation of social safety nets for workers affected by the deployment of AI technologies. She noted that economists were mistaken in assuming that workers displaced by automation would seamlessly transition into new roles within different industries. Gopinath’s warning coincides with the increasing use of AI tools like chatbots and image generators, fueling discussions and predictions regarding their potential impact on the job market. However, concerns persist that AI may not only lead to wage reduction and job displacement but also exacerbate the income disparity between high- and low-paying jobs within the economy.

Gopinath’s cautionary remarks underscore the pressing need for governments, institutions, and policymakers to swiftly address the potential adverse consequences of AI. The widespread implementation of AI tools carries the capacity to profoundly reshape the labor market, posing the risk of disproportionate job losses in specific sectors. Given the potential for social disruption, Gopinath recommends the establishment of social safety nets to support workers affected by AI deployment.

This warning arises as the utilization of AI tools continues to expand, prompting discussions on the transformations they may bring to the job market. However, concerns persist that A.I. not only poses risks of wage reduction and job elimination but also amplifies the income divide between high- and low-paying positions within the economy, with potential repercussions on global interconnectedness.

Source: Fortune

New Law in New York Mandates Full Disclosure of AI Software Use

Starting from July 5, 2023, New York City will implement a new law that governs the use of AI in the hiring process. Under it, companies utilizing AI software for hiring purposes will be obligated to inform candidates about its usage. Failure to comply with the law may result in fines for non-compliant companies. However, the legislation has faced criticism from both labor and business interests.

Some businesses, however, have criticized the law’s feasibility due to the relatively new nature of AI-assisted hiring and the absence of established standards and oversight bodies.

This development follows the recent implementation of New York City’s pay transparency law.

Source: Archinet

HR Managers Themselves Are Worried

This would have been funny had it not been such a serious issue. A recent survey conducted among 1,000 HR managers in the UK revealed that 43% of them expressed concerns about potential job losses as AI assumes some of their responsibilities. However, Ross Seychell, the chief people officer at HR software firm Personio, stated that while AI would indeed bring changes to the HR field, it would not be able to replace certain essential human skills, such as empathy.

The survey also indicated that 74% of business leaders believed that their companies needed to enhance efficiency, with 66% of them expressing the view that AI and automation could facilitate this objective.

In the UK, somebody had put up an AI employee for hire, a world first. This led to a note of caution from a UK Member of Parliament, who warned that AI is not infallible. The MP emphasized that businesses must ensure the appropriate use of AI and have a clear understanding of its limitations.

In summary, the survey of UK HR managers highlighted concerns about potential job losses due to AI, while experts emphasized that certain human skills, like empathy, cannot be fully replicated by AI. Business leaders recognized the need for improved efficiency and saw AI and automation as potential facilitators.

Source: HR Magazine

Conversational AI is a Game-Changer in E-commerce

A few weeks ago, I referred to the fact that generative AI would start to play a very big role in customer service, eventually replacing humans. That prediction seems to be coming true.

The use of conversational AI with embedded generative AI techniques is becoming increasingly popular in e-commerce. Why? It helps companies to create a personalized journey for customers, respond to queries faster, and deploy Points of Sale (PoS) in popular messaging apps.

This article in chatbotslife.com explores the primary use cases of generative AI chatbots in e-commerce and the benefits of integrating them, including personalized product recommendations, human-like language, and the ability to provide reviews and price comparisons.

One key benefit of generative AI chatbots in e-commerce is their ability to analyze customer data and create personalized product recommendations for individual customers. By analyzing customer data such as purchase history and browsing behavior, chatbots can suggest products that are likely to interest the customer, increasing the chances of a sale.

But more importantly, another use case for generative AI chatbots in e-commerce is their ability to use language similar to a human sales associate, such as “I see that you’ve added product X to your cart.” This human-like language can help build trust with customers and make them feel more comfortable making a purchase.

Overall, generative AI chatbots are proving to be a valuable tool for e-commerce companies, enabling them to provide a personalized and streamlined customer experience.

Source: chatbotslife.com

In China, AI is Providing Jobs

The youth unemployment rate in China has reached an unprecedented high, especially for the 11.6 million recent graduates facing a challenging job market. However, amidst this situation, there is a shining beacon — the AI sector.

Recent data from Liepin indicates a surge in job offers for graduates specializing in large language models and other AI-related fields, making AI a rare and promising hotspot within China’s graduate job market.

This remarkable increase in job opportunities can be attributed to the ChatGPT frenzy, which has sparked a surge in employer demand. ChatGPT, an AI language model capable of generating human-like responses to text prompts, has gained immense popularity in China, driving the need for graduates skilled in large language models and other AI domains.

This trend is expected to continue, as the Chinese government has prioritized AI development as a national agenda. With a goal of becoming a global leader in AI by 2030, the country has made substantial investments in AI research and development. Consequently, new AI startups have emerged, and the demand for AI talent has soared. As a result, graduates equipped with AI skills are likely to experience ongoing success in China’s job market in the coming years.

Source: South China Morning Post

(The above is part of my newsletter, “AI For Real”.)