As the world rapidly adopts artificial intelligence (AI) and technological advancements, global labor markets are preparing for unprecedented change. A recent report by the World Economic Forum (WEF) predicts that 25% of all jobs will undergo considerable transformation within the next five years due to artificial intelligence (AI), digitization, and other economic factors, such as the shift towards green energy and supply chain re-shoring.
The analysis suggests that the rise of artificial intelligence will cause significant disruptions in the labor market, with various clerical jobs progressively becoming obsolete. Simultaneously, demand for technology and cybersecurity specialists is anticipated to increase. In the coming years, however, the cumulative effect of these technological advancements will be positive, with big data analytics, management technologies, and cybersecurity emerging as the primary drivers of employment growth.
AI applications such as ChatGPT, which uses machine learning to simulate human reasoning and problem-solving, will significantly impact the labor market. The growing prevalence of AI is anticipated to have the most significant impact on jobs involving reasoning, communication, and coordination.
The WEF report estimates that adopting AI technologies will eliminate up to 26 million jobs in the record-keeping and administrative sectors, based on a survey of 800 companies representing a combined workforce of 11,3 million employees across 45 economies. Examples of affected positions include cashiers, ticket takers, data entry operators, and accountants. Despite this, 75% of the companies surveyed plan to implement AI technologies within the next five years.
AI poses a lesser hazard to employment prospects than other macroeconomic factors, such as slower economic growth, supply shortages, and current inflation. Nonetheless, the report highlights potential employment creation opportunities resulting from investments in the green transition of businesses, the application of ESG (Environmental, Social, and Governance) standards, and the reorientation of global supply chains. As technology and AI continue to transform the global workforce, businesses and employees need to adapt and remain ahead of these developments.