It is anticipated that in the near future, the continuing Artificial Intelligence (AI) revolution would seriously threaten human employment. In the middle of all the discussions about how AI may replace human employees by becoming more effective than they are, a new study shows that a number of occupations face a serious threat from the technology.
The possible effects of artificial intelligence (AI) on the US labour market have been emphasised in a recent McKinsey Global Institute report titled “Generative AI and the Future of Work in America.” According to the survey, employment possibilities across many industries would significantly change as a result of AI and shifting consumer behaviours, prompting people to find new careers.
The paper emphasises how AI has the potential to significantly speed up economic automation, which by 2030 may account for 30% of all hours worked in the US economy.
According to the paper, AI will eventually replace all activities that need some level of automation, such as data collecting and repetitive operations, in order to increase productivity. The office support, customer service, and food service industries will be the ones most affected by this AI change. By 2030, the US alone may need 12 million more occupational transitions, according to the analysis.
“We see a 1.6 million job loss in the need for clerks12, in addition to losses of 830,000 jobs for retail salespeople, 710,000 jobs for administrative assistants, and 630,000 jobs for cashiers. These professions have a large proportion of repetitive tasks, data gathering, and basic data processing—all of which may be effectively handled by automated systems.
The article goes on to say that this modification will compel job searchers to switch industries. We predict that by 2030, 11.8 million people who are presently employed in professions with declining demand may need to change their fields of employment.
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The paper also emphasises that low-wage workers would suffer more from these projected employment transitions brought on by AI. It claims that compared to higher earnings, people making less than $30,800 annually and those making between $30,800 and $38,200 annually are up to 10 and 14 times more likely to need vocational adjustments by the end of this decade.
The research makes it clear that the change in employment will also require low earners to pick up new skills in order to transition to other occupational sectors. This also supports the assertion made by several other experts, who said that the employment market will only support those who stay up with technology changes. Additionally, upskilling will make it easier for people to live alongside AI.
Job opportunity due to AI
The McKinsey study makes clear that this change in employment won’t happen overnight but will instead benefit those in the legal, business, and STEM fields. By 2030, it is expected that there will be a 23 percent increase in the demand for STEM occupations.
“Although layoffs in the tech sector have been making headlines in 2023, this does not change the longer-term demand for tech talent among companies of all sizes and sectors as the economy continues to digitise,” the report stated.
According to the survey, the healthcare sector is predicted to have the most rise in job creation, with a need for 3.5 million new positions for health assistants, health technicians, and wellness professionals. Major digital revolutions are expected to occur in industries including banking, insurance, pharmaceuticals, healthcare, and transportation services, which will result in an increase in job growth in these fields. Additionally, a 9% job growth in the sector of transport services is anticipated by 2030.
The report’s conclusion is that the current AI transformation will provide job prospects for positions requiring sophisticated technical knowledge, the ability to think critically and creatively, and the ability to solve complicated problems. However, there may be less demand for professions that are mostly manual and repetitive in nature. There may be less need for human labour in certain positions as a result of automation and AI taking over some of these jobs. The report’s conclusion reads, “Overall, we expect more growth in demand for jobs requiring higher levels of education and skills, along with declines in roles that typically do not require college degrees.”
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