A Permanent Fixture in the Modern Landscape
In 2022, we highlighted the growing adoption of generative Artificial Intelligence (AI), foreseeing its inevitable integration into daily life comparable to smartphones and internet connectivity. The pace of this transformation has proven even swifter than anticipated. Today, new iPhones and computers come standard with personalised AI software, significantly enhancing user experience and productivity. This rapid integration underscores AI's profound impact across personal and professional spheres, necessitating swift adaptation from businesses to maintain competitiveness.
In advanced economies, 60% of jobs are now impacted by AI. Unlike previous waves of automation and information technology, which mainly affected routine tasks, AI goes further by handling cognitive functions such as:
data processing,
pattern recognition, and
decision-making. This expansion means even highly skilled jobs, traditionally thought safe from automation due to their complexity and reliance on expertise, now face potential disruption. This shift poses challenges for older workers who may struggle to adapt to these new technologies, potentially widening the gap in the workforce. Consequently, there is a growing demand for training programs focused on AI, highlighting the urgent need to upgrade skills and close this divide.
Companies that fail to prepare their workforce for AI integration risk significant productivity losses.
Employees who lack the necessary skills to leverage AI technologies effectively may find themselves unable to compete in the evolving job market, leading to decreased efficiency and innovation within the organisation.
A recent paper published by the International Monetary Fund (Singapore) explores the likelihood that women will be impacted more negatively than men with the adoption of Gen AI. The information provided highlights how AI could disproportionately impact women in various countries. Specifically:
Occupational Exposure: Women tend to be employed in occupations with higher exposure to AI technologies more than men do. This trend is observed across different countries, indicating that women face a greater likelihood of being affected by AI-driven changes in the workplace.
Risk and Opportunity: While women have higher exposure to AI in their occupations, this exposure is distributed across both jobs that could benefit from AI complementarity and those that may face risks from automation. This dual exposure suggests that women not only face greater risks but also have opportunities to benefit from AI technologies.
Education: Higher levels of education generally correlate with increased exposure to AI technologies. Women with higher education levels are more likely to be employed in occupations that have high exposure to AI. This suggests that while education can provide advantages in adapting to technological changes, it also means that highly educated women may face significant disruptions from AI.
Overall, the data underscores the importance of considering gender and generational disparities in the context of AI impacts. Policies aimed at mitigating these disparities should take into account the specific occupational and educational dynamics that affect these groups exposure to AI technologies. This approach is crucial for ensuring that AI-driven advancements do not exacerbate inequalities within the workforce.
The EU ACT published in May 2024 not only regulates but also mandates organizations to educate employees. It will not be long before other authorities around the world also mandate that the responsibility to keep employees' skills relevant sits with the employer.
In conclusion, continuous adult learning is imperative in the AI era. Companies that neglect this priority risk their workforce becoming inefficient in a short span of time, potentially within a few years, as technology rapidly evolves. Investing in upskilling and education is not just about staying competitive but also about fostering a productive, innovative, and adaptable workforce capable of thriving in the AI-driven future.
Reference: IMF AI _Gen-AI: Artificial Intelligence and the Future of Work