According to a recent estimate, the A.I. job culling has already started and the technology cost 4,000 individuals their jobs in the past month.
The fear of artificial intelligence replacing people in the workforce is no longer credible. 3,900 workers lost their jobs in May as a result of technology, a recent research has discovered.
According to the Challenger, Grey & Christmas research, American businesses shed over 80,000 employees in May, a 20% increase over April. Market factors, restructuring, and buyouts were among the causes of the layoffs, but AI was also a first.
According to Andy Challenger, senior vice president of the recruiting agency, all of the approximately 4,000 job cuts resulting from artificial intelligence were in the technology sector. The layoffs occur amid a significant sectoral downturn; since the fall of the dotcom bubble in 2001, this year has seen the most year-to-date layoffs.
Challenger stated that they “do believe A.I. will lead to more job loss, though we are surprised at how quickly the technology was cited as a reason.” “The rate at which technology is developing and adapting is astounding.”
The Challenger research didn’t say which businesses faced employment cuts because of artificial intelligence.
A.I. is still replacing certain tasks while adding new ones. Between February and April, 3,651 new AI-related posts were advertised by JPMorgan, according to Bloomberg. Many businesses are utilising artificial intelligence (AI) not to replace workers but as a tool to assist them by delegating some of the menial tasks.
According to a recent poll by the software company Krista, the majority of Americans think that ultimately, AI will have an impact on their professions. However, there is a significant difference between the opinions of managers and lower-level employees. Only 11% of managers believe that technology will have a negative impact on their professions, indicating that they are positive about its benefits. However, lower-level employees are much more likely to be afraid that the technology could harm their careers; in fact, nearly twice as many of them believe that AI will have a negative impact on their professions.
According to a March prediction from Goldman Sachs, automation may replace 18% of all jobs globally and a fourth of all jobs in the United States and Europe. The same study discovered that white-collar occupations, such as those requiring computer and financial skills, as well as administrative and legal work, are more dangerous than those requiring manual labour in the blue-collar sector.
This is so that artificial intelligence (AI) can automate processes like summarising fund performance reports, writing programming, and other sophisticated jobs that take humans years to learn. It can digest reams of data in minutes or seconds and can retrieve knowledge that individuals would have to memorise right away. Some businesses find that using A.I. instead of hiring people is more cost-effective and efficient with that level of computer power.
Some people who have already lost their employment as a result of A.I. have switched to blue-collar work because the technology predominantly eliminates white-collar positions. According to the Washington Post, Olivia Lipkin, a former copywriter in San Francisco who was fired in favour of artificial intelligence, is now a dog walker. She revealed to the Post that, on the business Slack, her coworkers had been calling her “Olivia/ChatGPT” before to her termination.
The likelihood of widespread layoffs and forced employee transition to lower-paying occupations rises as A.I. advances.
According to Challenger, “the uncertainty lies in whether companies will cite A.I. as a reason [for termination] going forward.” The response of investors to such adoption, which eliminates human jobs, is yet to be seen.