“AI will not replace jobs, but it will transform them. AI algorithms will handle routine tasks. People will focus on what they do best: creativity, empathy, and meaning.”- Kai-Fu Lee
Flash forward; It’s the year 2035. You walk into a nearby manufacturing plant and notice there are hardly any people working there. Everything is automated—from the assembly line, quality control, safety and environmental monitoring, and even material handling. You notice that artificially intelligent (AI) robots and automation systems are completing tasks with greater speed, precision, and efficiency than a human could in the same role. In 2024, with downward trends in manual labor employment opportunities, the scenario described above is becoming a reality for the manufacturing industry.
With this in mind, this article seeks to answer two pressing questions.
- What jobs are likely to be affected by AI?
- What can the government do about it?
In March 2023, Goldman Sachs published a report titled: The Potentially Large Effects of Artificial Intelligence on Economic Growth. According to the report, approximately 300 million jobs globally will be exposed to automation because of generative AI. If Goldman Sachs’ prediction is correct, this means about 18% of jobs globally are at risk to automation.
Dr. Kai-Fu Lee, a prominent figure in the field of artificial intelligence who had spot-on predictions over the last two decades, has supported the above statistic in his book, AI Superpowers. According to Lee, routine and repetitive tasks will be increasingly automated, leading to the displacement of jobs in manufacturing, transportation, and customer service. Generative AI adds another level of fear surrounding job loss, because technologies now have the ability to think. Which means that technologies not only have the potential to automate routine and manual tasks, but also complex cognitive tasks, such as data analysis, and creative endeavors like writing and design.
So what’s the upside of AI in the job market?
Typically, worker displacement from automation is offset by the creation of new jobs and new occupations. Think about the jobs that were created by the invention of the printing press, as well as how workers were up-skilled because they learned to read. Similarly, roles that are routine or repetitive may be completely replaced by generative AI (like scribes were after the printing press came into common use). There are other roles that will be affected in positive ways and new roles that will be created (such as the printers, book-sellers, educators, and journalists in the 1500’s). In fact, in the same report mentioned above, Goldman Sachs also predicted that over the course of ten years, generative AI will raise worker productivity by 1.5 per person and raise the annual global GDP by 7%.
Generative AI tools have already been implemented in both the finance and legal fields to raise worker productivity. With respect to finance, the mundane tasks associated with portfolio management are starting to become automated. As it relates to the legal field, attorneys have begun to use AI-based programs to generate contracts. Since the AI tools free up time and energy from monotonous tasks, these professionals are able to engage in tasks associated with qualities that humans do very well: creativity, empathy, and interpersonal skills.
The upside to incorporating generative AI in the workforce is that there will be a significant increase in demand for jobs that incorporate skills that are uniquely human. These roles involve tasks that rely on human ingenuity, emotional intelligence, and a nuanced understanding of human behavior— qualities that are difficult for machines to replicate.
However, the fear surrounding high unemployment and job displacement is well founded. Generative AI technologies will not only automate routine and manual tasks, but also complex cognitive tasks. Because of AI-driven automation, existing socio-economic inequalities will be exacerbated without government intervention. As workers with lower levels of education are often in industries susceptible to automation, how can all-levels of government (from local school boards to Congress) develop an environment that fosters innovation and up-skills workers?
How can the government help the workforce adapt?
In the 1950’s coal mining provided 350,000 jobs to the United States. By 1970, this number dropped by 64% to 125,000. 225,000 manual labor jobs were lost due to the mechanization of the mining industry. Operations that were primarily conducted by pick and shovel were replaced by automation. In reaction to the devastating effects of automation on the local economies, the U.S. government created retraining programs to help workers transition to new sectors and incentivized these regions to adopt alternative industries, such as renewable energy.
Similarly, to prepare for AI and other future technologies like quantum, the government should proactively establish initiatives that retrain and upskill workers for AI-related roles and industries. By investing in accessible training opportunities in emerging fields, such as programming, data management, and AI ethics, the negative consequences of new technology and automation felt by local economies will be mitigated.
Leaders at all levels of government, including local, state, and federal, should proactively build an ecosystem that promotes economic diversification and innovation. Building a future economy that is flexible to technological changes entails passing policies that offer tax incentives, funding research and development initiatives, fostering collaboration between academia and industry, and developing a modern education system that promotes continuous learning. These policies are key strategies that governments will need to implement to adapt to the evolving employment landscape shaped by AI.
State government initiatives in California serve as a successful example of policy implementation aimed at building an economy that can adapt to the evolving employment landscape. With its vibrant tech industry centered in Silicon Valley, California implemented the California Community Colleges’ Strong Workforce Program to provide career technical education and training in high demand fields, such as information technology and advanced manufacturing. Additionally, California partners with industry leaders and educational institutions to establish specialized AI training programs and centers of excellence, such as the AI Institute for Human-Centered AI at Stanford University and the AI Institute for Collaborative Solutions at the University of California, Berkeley.
Furthermore, California has adopted policies to support innovation and entrepreneurship in AI. The state government has provided funding and resources for startups and research institutions working on AI technologies through programs like the California Institute for Regenerative Medicine and the California Energy Commission’s Clean Energy Fund. By fostering a collaborative ecosystem of education, industry, and government, California is positioning itself to thrive in the rapidly evolving AI-driven economy while ensuring that its workforce is prepared for the jobs of the future.
In Sum:
AI is changing the employment landscape by automating certain jobs, but it is also supplying the market with new opportunities.
- AI is changing the employment landscape by automating certain jobs, but it is also supplying the market with new opportunities.
- Because of advancements in technology, there are fears about unemployment, job displacement, and other societal changes and economic transformations caused by advancements in technology.
- Federal, state, and local governments can proactively adapt to trends influenced by AI by engaging in the following: reskilling workers; investing in education and workforce development programs; and fostering partnerships between educational institutions, businesses, and government entities to facilitate the creation of apprenticeship programs.
- Governments can enact policies that support the integration of AI technologies into various industries while simultaneously addressing concerns regarding job loss and displacement.
- Create job placement and retraining programs specifically tailored to individuals affected by AI-induced job displacement to help mitigate the negative impacts of technological advancement on certain sectors of the workforce. Embrace AI responsibly and proactively to harness AI’s potential to drive economic growth and create new opportunities for constituents
~ By Amanda C. Molina, Esq. and Abigail Harris
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