We are no longer the only higher intelligence on this planet.
Entities with infinite potential are rapidly developing into either humanity’s panacea or humanity’s scourge and extinction.
And tech firms and researchers all over the world are hurtling towards deepening the reach and capability of this intelligence.
The advent and ascension of artificial intelligence will foment deep and profound impacts on business and jobs.
But how will AI affect jobs? What will change for workers? What industries will feel the deepest impacts?
Technology invention and innovation is accelerating exponentially and is shifting how humanity has a species of approaches problems.
Let’s walk through what that means for businesses and jobs businesses create. If you feel overwhelmed already, let’s dial back the tech talk to mobile apps for business.
Defining Artificial Intelligence
At a super basic level, artificial intelligence is the ability of computers to act intelligently or to think for itself. AI in computers or paired with robots act in a way that we would associate with human-like thinking.
In application, AIs are able to use inputs like static or real-time data to either perform multiple-input tasks, solve problems or learn how to do something.
The benefit of AIs is allowing to set a machine to a task to accomplish tasks that will do it perfectly over hundreds or thousands repetitions with the computing and memory capabilities of computers.
Human Work Replaced…
The Brookings Institute, a left-leaning think tank, released a major report that both examined impact that artificial intelligence and its accompanying automation will have on the future of work and on specific metros.
AI continues a trend that all machines and technology have exacted on the world; they replace or maximize the ability of humans to do mundane, repetitive or tasks that require little critical thought.
An example of this chatbots or voice-operated call trees. Chatbots use several layers of programming to find the meaning of information typed in by users and responding with the appropriate information.
Voice-operated call trees do a similar thing. They understand voice inputs and analyze them to present the right information or take them to the right part of the call tree.
They replace the basic task simply getting people basic information.
The Brookings report states that nearly all occupations will be impacted by AI and automation.
Some 25 percent of all jobs have high exposure to these forces. But the report also states that the AI and automation doesn’t of itself replace jobs; they replace tasks. For a job to be completely eliminated, every single task on that job needs to be replaced.
While this isn’t likely for a lot of jobs, the automation of task can make individual workers more efficient. So, there is a need for a few workers to accomplish the same amount of work.
Which Industries Will Be Impacted?
Here’s Brooking’s list of industries’ potential exposure to AI and automation, in order of greatest exposure:
- Accommodation and Food Services: 73%
- Manufacturing: 59%
- Transportation and Warehousing: 58%
- Agriculture, Forestry, Fishing and Hunting: 57%
- Retail Trade: 53%
- Mining, Quarrying, and Oil and Gas Extraction: 51%
- Other Services (except Public Administration): 49%
- Construction: 47%
- Wholesale Trade: 44%
- Utilities: 43%
- Finance and Insurance: 42%
- Arts, Entertainment, and Recreation: 41%
- Administrative/Support and Waste Management/Remediation Services: 41%
- Real Estate and Rental and Leasing: 40%
- Government: 37%
- Health Care and Social Assistance: 36%
- Information: 35%
- Management of Companies and Enterprises: 34%
- Professional, Scientific, and Technical Services: 34%
- Educational Services: 27%
It follows that the cities that face the greatest impact from artificial intelligence and automation are those that have the highest concentrations of the highly-exposed industries.
… Or Magnified?
On the flip side of AI and automation, labor and other basic cognitive tasks will be complemented by technology. This makes the tasks not taken over by machines more valuable and meaningful. It also makes labor more productive.
The use and development of AI and automation temporarily creates a surge of jobs to transition economies to a new era of tech use. But afterwards, the remaining jobs require some education to use the technologies. The smaller number of jobs to do the same amount of work or do more work with the same number of jobs can have a magnifying effect on smaller or other labor-limited economies.
What Are Some of the Practical Impacts?
For most industries, jobs that simply focus on interacting or performing mundane tasks for customers are likely to disappear.
At least one financial firm predicts that as many as 95 percent of customer interactions will involve AI.
This is a little bit of misnomer in the fact that fewer and fewer people are experiencing face-to-face interactions in retail and grocery settings. Online purchases and the overall customer experience of buying things online is getting better.
Microsoft Services’ chief technology officer Norm Judah wrote last year that AI, as an industry and as a service, will help add $15.7 trillion to the world’s GDP by 2030.
Here’s some highlights from Judah’s write up:
- Executives and leaders in developing economies are bullish that it will be able to solve major problems: 94 percent of executives said AI is important to their strategies and 83 percent of those in developing economies expect positive impacts.
- 27 percent of businesses have already adopted some kind of AI. Another 46 have some kind of pilot or test underway.
- 59 percent of executives believe that use of AI will increase jobs at their companies.
- 56 percent believe that wages will go up because of the use of AI
- The top uses across manufacturing, retail, healthcare and the public sector is predictive analytics or some other kind of machine learning to guide decisions or to find new solutions.
One Thing Is for Sure
Change is coming to business. All levels of business need to keep up or be left behind. But how do you keep up when you are just getting started? That’s where Tartlabs come in.
We specialize in building out the tech capabilities of startups to ensure that they take the entrepreneurial spirit driving their vision to the world.
We have something for you. Launch with us with these services.
We’ll be seeing you.