AI technology reshapes labor market landscape
The job market is changing rapidly as AI technology continues to evolve, with professional occupations requiring a high level of expertise being the most likely to be replaced by this technology, according to industry officials and experts, Thursday.
The Korea Institute for Industrial Economics & Trade (KIET) said in its March 13 report that the number of jobs in Korea that could be replaced by AI technology is 3.27 million, accounting for 13.1 percent of all jobs.
The state-run institution pointed out that the adoption rate of AI by domestic companies was at only 4 percent in 2022, but the rate will be expanded soon due to the performance improvement of AI and consequently AI will likely replace an increasing number of jobs.
In particular, 1.96 million jobs, or 59.9 percent of AI replaceable jobs, are concentrated in the professional sector, the report said. Among them, 99.1 percent of jobs in management and financial professions are at risk of disappearing due to AI.
Not only in the financial sector but also 450,000 jobs in scientific and technical services and 380,000 jobs in information and communication technology are estimated to be the most at risk of being replaced by AI.
Industry experts cited the example of the Jeju Special Self-Governing Provincial Government, which is saving a significant amount of money and attracting attention by employing an AI-based virtual human announcer instead of hiring a professional to deliver news about the popular tourism features of the island.
“Because AI technology is developing at a terrifying speed, the attempt to replace various types of jobs with AI will continue. This will lead to cost reductions and improved efficiency, so it is expected to be an unstoppable movement of change,” an official from a local AI company said on condition of anonymity.
On March 12, the Jeju Special Self-Governing Provincial Government announced that it started employing an AI announcer named J-NA from March to promote news happening on Jeju Island and the government’s policies.
The fact that the company providing this AI-based virtual human announcer charges only 600,000 won ($455) per month has attracted a lot of attention for its ability to achieve high efficiency at low cost.
“The pattern of labor substitution by AI is predicted to be very different from the past when robots replaced manufacturing jobs,” said Song Danbee, a KIET research fellow who wrote the report. “AI has already caused a real change in labor demand.”
The report also pointed out the need for nurturing professionals in the AI sector as private investment led by big tech companies like Microsoft and Google is driving AI innovation.
“To train highly skilled AI experts, Korea needs to reorganize the current academic system and strengthen policy support to attract overseas experts,” said Min Soon-hong, another KIET research fellow.
Such opinion is in line with a 2023 report of the International Labour Organization (ILO), which said in its study, titled “Generative AI and Jobs: A global analysis of potential effects on job quantity and quality,” that day-to-day office jobs are expected to face much exposure to AI technology developments.