The 2023 AI Revolution: Understanding the Real Effects on Jobs
Artificial intelligence is transforming the way we work. Some jobs will be automated, while others will be augmented by AI. The future of work is uncertain, but one thing is for sure: it will be different.
According to a recent Accenture report, Large Language Models like GPT-4 could impact up to 40% of working hours. This is attributed to the fact that language tasks make up 62% of total work time, with 65% of that time being potentially enhanced or automated for greater productivity.
A report from Goldman Sachs suggests that Generative AI could potentially impact around 18% of global work, affecting approximately 300 million jobs. The impact is expected to be more significant in advanced economies compared to emerging markets.
According to the report, around two-thirds of jobs in the United States and Europe are exposed to some degree of AI automation, with approximately a quarter of all jobs potentially being performed entirely by AI in the future.
Another study, conducted by researchers from the University of Pennsylvania and OpenAI, found that educated white-collar workers, earning up to $80,000 a year, are the most vulnerable to workforce automation.
The rapid advancement of AI has sparked intense discussions about its profound implications for the job market and the way we work. While opinions on the matter vary, experts agree that AI will undoubtedly play a significant role in transforming work as we know it. But let’s keep in mind that predictions about the labour market and the future, in general, should be approached with caution, as they can be unreliable.
In this article, we will explore five industries that will undergo major changes, the key ways in which AI is set to revolutionise work, and how we can embrace this technological evolution.
New Roles and Skills in the Age of AI
The AI revolution of 2023 has unveiled the transformative potential of artificial intelligence, capturing global attention and sparking unprecedented creativity. ChatGPT, with its ability to mimic human dialogue and decision-making, marks a true inflection point in public adoption. The widespread recognition of AI’s disruptive power has led to an industrial revolution of AI, unlocking new frontiers in business, science, and society.
Large language models (LLMs) represent a significant milestone in AI. They have cracked the code on language complexity, enabling machines to learn and generate language with independence and creativity. Pre-trained on vast amounts of data, these models can be adapted for various tasks, allowing for their reusability and repurposing.
In this AI revolution, every role in every enterprise has the potential to be reinvented as humans work with AI co-pilots, amplifying their capabilities. Companies must now reinvent work through job redesign, task redesign, and reskilling.
While AI will automate or augment a substantial portion of language-related tasks, it does not mean that machines will replace humans entirely. Human involvement will still be crucial. Moreover, new roles will emerge, creating such career opportunities as prompt engineers, AI editors, and AI quality controllers.
Industries Heavily Impacted by AI
The influence of AI will vary across different industries. Sectors like farming and chemicals may not be greatly affected by AI’s as the majority of working time in these industries is dedicated to non-language-related tasks. However, others will undergo significant changes as AI becomes more deeply integrated into their activities.
Let’s take a closer look at five industries that will be heavily impacted by the new technologies:
1. Banking and Finance
The sector is already witnessing the transformative power of AI. According to the Cambridge Centre for Alternative Finance and the World Economic Forum, a significant number of financial services companies have already incorporated technology into various areas of their business. The Business Insider Intellifence report reveals that 56% of these companies have implemented technology in the domain of risk management, while 52% have utilised it to enhance revenue generation through the development of new products and processes.
43% of modern customers prefer chatbots over visiting a branch to complete tasks. And most banks (80%) are highly aware of the potential benefits presented by AI and machine learning.
Even today artificial intelligence is streamlining back-end operations, enhancing cybersecurity measures, and improving customer service through the use of chatbots. Banks are also leveraging AI-generated products and solutions for fraud detection, risk assessment, and personalised financial advice.
Banks have identified three key areas where they can leverage AI to reduce costs: the front office, middle office, and back office.
In the front office, AI can be employed for conversational banking, enhancing customer interactions and streamlining processes. The middle office can benefit from AI-driven fraud detection and risk management systems, enabling more effective identification and prevention of fraudulent activities. Lastly, AI can be utilised in the back office for underwriting processes, improving efficiency and accuracy.
By harnessing AI across these channels, banks can optimise operations and achieve significant cost savings.
As technology continues to advance, jobs in this sector may shift towards more specialised roles that require a deep understanding of AI applications and regulations.
2. Media and Marketing
Generative AI tools, like ChatGPT and Google’s Bard, can produce content that is often indistinguishable from human-generated text. This has significant implications for writing, marketing, and other creative professions, as AI can assist in generating content, brainstorming ideas, and optimising content for search engines. However, human creativity and judgement will remain essential to ensure the quality and accuracy of AI-generated content.
AI technology can assist in identifying spelling errors and plagiarism and improving clarity in writing, but it cannot still thoroughly assess certain crucial aspects of content evaluation. It remains essential for editors and marketers to review content while considering the target audience and the intended message. The human touch remains indispensable for developing engaging content and implementing successful marketing strategies.
It will likely take many years of trial and error, possibly with significant mistakes, to determine how AI should fit into journalism and other creative professions. However, one thing seems clear: Sooner rather than later, tools like ChatGPT will become a regular part of many journalists’ toolkits.
The vast amount of data available from sources like the web, sensors, mobile devices, and satellites has created a world where there is simply too much information. AI should be viewed not only as a tool for generating more content but also as a means to help us filter and make sense of it.
Nevertheless, the use of Generative AI in journalism will continue to raise concerns about accuracy, ethics, responsibility, job displacement, and the potential loss of critical thinking and creativity. Journalists should actively participate in the development of new AI tools, for example, by writing editorial algorithms and applying journalistic principles to the new technology.
3. Retail
Retail ranks as the top industry in the world for the highest chatbot engagements among customers. The increasing global trend for self-service options has transformed the way consumers interact with retail brands. Voice and text are now the preferred platforms.
Shopkeepers in retail stores have key duties that involve monitoring inventory, handling payments, and providing customer assistance to drive sales. However, as many supermarket customers are aware, the checkout process is gradually being shifted onto consumers, resulting in employees becoming less involved in this aspect of their responsibilities.
Adopting conversational chatbots appears to be the best approach for impressing and engaging consumers. It also plays a key role in customer communication strategy, helping build lasting relationships.
AI is revolutionising the retail industry by optimising pricing strategies, inventory management, and enhancing customer experiences. Retailers are leveraging it for demand forecasting, personalised recommendations, and even automating in-store tasks such as restocking shelves and customer assistance.
Modern chatbots are already capable of understanding shopper intent, asking relevant clarifying questions, suggesting the best options based on needs and preferences, and giving assistance with order processing.
The most challenging aspect for robots in the retail industry, both presently and in the future, is human interaction. The presence of emotional intelligence is a distinctive trait that ensures humans remain relevant in the workplace. The significance of emotional intelligence in a professional setting cannot be overstated, particularly in client interactions.
4. Healthcare and Pharmaceuticals
AI has immense potential in healthcare, ranging from diagnostics and medical imaging to drug discovery and forming treatment plans. 90% of U.S. hospitals will use medical bots to improve their quality of care by 2025.
According to a research paper published in the International Journal of Health Services, psychiatrists dedicate approximately 20% of their workday to paperwork, while internists and general practitioners spend 17% on similar administrative tasks. Automating these mundane and time-consuming activities through technology is a viable option.
The patients already use voice assistants to address their health issues:
- 73% ask about illness symptoms
- 46% search for medication information
- 38% look for a hospital, clinic, or urgent care centre location
- 28% ask about nutrition information
However, in the healthcare industry, human touch matters more than any other. Conversational AI is the future of the patient-centred approach to healthcare. At Tovie AI, we provide patient-physician contact at a distance, as well as remote care, monitoring, and patient admission.
The complex and sensitive nature of healthcare tasks necessitates a delicate balance between AI-driven automation and human expertise. Healthcare professionals will need to learn how to effectively collaborate with AI tools while maintaining a strong focus on patient care and empathy.
5. Call centres
Today’s clients expect their queries to be resolved in real-time. 90% of customers globally consider timely issue resolution the top priority in brand experience.
Known for their high staff turnover, call centres are often stress-filled environments in which staff spend much of their day attempting to calm angry customers. Modern AI technologies allow automate call centre interactions, reduce service costs, and create meaningful experiences for both customers and teams.
Virtual assistants can handle routine queries from customers allowing live agents to take more calls with complex queries. Employees are no longer at risk of “burnout” doing time-consuming mundane tasks, and their efficiency is increased.
Voice bots already resolve up to 70% of customers’ issues and questions during their first interaction. They understand caller intent and engage in personalised conversations using real-time customer information from a CRM system giving immediate and relevant responses.
Will conversational and Generative AI replace contact centre agents?
Recently, IKEA implemented a Conversational AI chatbot to automate their contact centre calls, handling routine customer queries. Despite this, the Swedish furniture company has clarified that no job cuts are planned.
Instead, the company has adopted a unique approach by training its call centre agents to serve as interior design advisers. And it’s then charging customers £25 for a 45–60 minute video call with them! This shift has transformed agents from cost to revenue generators, as AI has taken over their previously overwhelming tasks. By leveraging their employee expertise in new ways and implementing AI for more efficient customer service, IKEA is adapting to meet evolving customer needs.
AI will not replace contact centre agents shortly, but it will certainly reshape their role as we know it today. While it remains uncertain whether automation can ever fully replicate the human touch and emotional intelligence that agents bring, there will be new prospects and challenges to enhance customer service.
To provide a superior self-service experience to customers, companies will need to swiftly adopt AI. These tools can be utilised to create and enhance the role of frontline agents, who, with the augmentation of AI, can perform at a higher level, handle more complex issues, and learn and adapt more rapidly through continuous reskilling.
Learning to Work With AI, Not Fear It
While AI models like GPT-4 have impressive capabilities, they still have limitations and cannot reason like humans. However, collaboration with AI is the way forward, as it enhances human potential and transforms industries.
From automation of routine tasks to enhanced decision-making and collaboration between humans and AI, this discussion highlights the opportunities and challenges that arise from this new era of AI-driven work.
Here are five key areas that individuals and organisations should focus on:
1. Automating routine tasks
2. Improving decision-making and problem-solving
3. Personalisation and customisation
4. Collaboration between humans and AI
5. New job opportunities and skill requirements
To Recap
While it is certain that we will collaborate with artificial intelligence in the future, currently, AI is not replacing humans but rather working alongside us as assistants. Similar to how ATMs changed the tasks of bankers without replacing them entirely.
On one hand, it is crucial to consider the impact of AI and anticipate transformations in the labour market, including changes in job descriptions, tasks, and required skills in the coming years. However, it is equally important to acknowledge that humans need to upskill themselves to align with highly skilled jobs that involve working directly with AI models.
The leaders of tomorrow will be those who embrace collaborative intelligence, leveraging the potential of AI to transform their operations, markets, and industries.
