AI and trending job displacement
ARTIFICIAL INTELLIGENCE (AI) and its associated technologies have begun impacting jobs worldwide. AI, with its human-like programmable persona, is one of the latest trends affecting many low to medium-skilled job roles today.
The rapid proliferation of AI across all industries remains confusing to many experts who are researching its i mpact. A challenge in this research is the constant change in AI capabilities, evolving at a rate difficult for the average person to keep up with.
AI AND JOB MARKET
AI has impacted approximately 40 per cent of jobs in various industries globally, leading to significant job displacement, especially in less economically advanced situations. An article by seo.ai noted that in May 2023, a total of 3,900 job losses in the United States were directly attributed to AI, accounting for five per cent of all job losses during that month. This ranked AI as the seventh-largest contributor to job displacement. The article also highlighted that the tech sector experienced a significant impact, with approximately 137,000 job losses in the current year, marking the largest round of layoffs since 2001.
PERCEPTION OF JOB REPLACEMENT
PwC’s Global Workforce Hopes and Fears survey in 2022, which spanned over 44 countries and included more than 52,000 participants, revealed that approximately 30 per cent of the participants expressed concerns that their jobs might be displaced due to advances in AI over the next three years. This could result in a greater socio-economic divide, putting increased pressure on governments to provide welfare solutions for rising unemployment rates.
Jamaica, as a developing country, is a haven for developed countries to invest in manpower. The boom in the business process outsourcing (BPO) industry and the hospitality and tourism sector proves that Jamaica has a lot of talent needed by these developed nations. International companies investing in the Jamaican labour force tend to outsource roles that require low skills, making training easier, more cost-effective, and providing access to a larger pool of qualified candidates. Specifically, in the BPO sector, companies are currently employing individuals who lack basic academic qualifications (CSEC, GCE, etc.) but are trainable for roles like data entry, customer service, and other back-office functions.
These roles are increasingly being undertaken by AI technologies. Companies like Neurored are offering Automation and AI for back-office operations. They provide AI-powered customer relationship management, supply chain management, and cloud computing technologies that replace tasks traditionally performed manually. This translates to fewer non-technical staff and a reduced need for highly skilled employees to manage the software.
AI AND LOW-SKILLED WORKFORCE
What will low-skilled Jamaicans do in this AI landscape? Many people in industries such as education, customer service, supply chain, and even wholesaling and retailing will be negatively impacted by AI. These industries, more than ever, are customer-facing. When the novel coronavirus emerged in 2020, many companies developed contactless systems to protect their stakeholders. With AI, companies can invest in tools to analyse data, predict customer service issues, identify trends, and create self-service solutions. This could reduce the daily issues encountered by people and decrease the need for staff. Consequently, schools might not need as many customer service representatives, and contact centres could focus on other tasks.
SHOULD WE WORRY ABOUT AI?
The answer to this question is something everyone should consider. No two people have the same vision, capabilities, and life plans. Many people will not follow the path they initially envisioned. If that were the case, many of us would be doctors, scientists, etc. Understanding AI and its capabilities is crucial for every Jamaican.
Questions such as ‘What is AI?’, its history, categories of AI and their functionalities, the impact of AI on industries of interest, types of AI used in those industries, future predictions for AI, its impact on personal life, available AI training, whether these trainings are local or require international travel, and the impact of AI on current job functions and future roles in an AI-driven world are essential. These are considerations we need to make before answering this question.
WHERE TO FIND INFORMATION ON AI?
People need to become resourceful in finding the information they need on AI. A good starting point is The Gleaner, where many columnists and guest columnists, who are experts in the field, have shared research and personal opinions on AI and its potential impact. Scholarly journals such as the Journal of Arts Science and Technology published by University of Technology, Jamaica, as well as journals from The University of the West Indies, University of the Commonwealth Caribbean, Harvard, Yale, MIT, and others, have published research by industry professionals on the subject. Additionally, training offered by institutions exposes participants to AI and positions them to become researchers in the field. The internet offers a wealth of resources, but users need to critically evaluate this information to discern facts from fiction.
AI is a double-edged sword, while it brings challenges in the form of job displacement, particularly for low-skilled workers, it also opens avenues for innovation, education, and new job creation. The future of work in Jamaica in the AI era will be shaped by how effectively the workforce, policymakers, and educational institutions adapt to and leverage the opportunities presented by this transformative technology. The journey towards an AI-integrated society is not just about technological adoption but about fostering a culture of continuous learning, adaptability, and innovation. It is about preparing for a future where AI complements human capabilities, leading to a more efficient, productive, and inclusive economy.
The key to navigating this transition successfully lies in education and training, ensuring that the workforce is equipped with the skills needed in an AI-driven world. This approach will not only mitigate the risks of job displacement but also unlock new opportunities for growth and development in Jamaica’s evolving economic landscape.