The rapid advancement of artificial intelligence (AI) and generative AI (GenAI) has sparked concerns about the future of employment, with many fearing that AI will eventually replace human workers and lead to widespread unemployment. This pessimistic view is fueled by the impressive capabilities exhibited by GenAI tools, which can now create content, generate software code, design logos and brochures, power customer support chatbots, and much more.
Not too long ago, the realm of AI was confined to specific business applications such as video analytics, risk and fraud detection, and medical diagnosis. However, the emergence of tools like ChatGPT, based on large language models (LLMs), has democratized access to AI for everyday tasks like search and queries.
As companies like OpenAI, Perplexity, and Mistral made their LLMs available to businesses, a wave of over 3000 startups worldwide began leveraging these models to develop software co-pilots for various purposes, including software development, content creation, and graphic design. Some of these startups are even exploring the creation of AI-powered “agents” that mimic human actions to achieve predetermined goals using GenAI technology.
While these developments are still in their infancy, they underscore AI’s vast potential in addressing mundane and repetitive tasks that are traditionally performed by humans. Industries such as graphic design, content writing, paralegal work, documentation, and software programming have already witnessed transformative solutions driven by AI.
Research suggests that approximately 47% of jobs in the US could be automated within the next decade. However, opinions vary, with the OECD estimating that only 9% of current jobs in the American market are at risk of automation. This disparity highlights the complex and nuanced impact that AI may have on the job market.
Leading technologist and venture capitalist Kai-Fu Lee argues that AI’s influence on the job market will result in a mix of winners and losers, depending on the nature of the tasks involved. While AI excels at narrow, data-driven optimizations, it struggles with creative and cross-domain thinking tasks that necessitate complex strategic planning.
In a report titled “GenAI: Too Much Spend, Too Little Benefit,” Goldman Sachs researchers question the efficacy of the $1 trillion spent on AI development, citing modest projections of a 0.5% increase in productivity and a 1% boost in the US GDP by MIT Professor Daren Acemoglu. Acemoglu’s study suggests that AI’s immediate impact on task automation may not be as extensive as previously thought.
Contrary to fears of widespread job losses, there are compelling arguments for AI’s potential to enhance human productivity and create new job opportunities. The evolution of AI and GenAI technologies is expected to give rise to novel professions and industries, such as AI training, data annotation, algorithm auditing, and AI ethics. Just as the IT industry flourished despite initial concerns of job displacement, AI is poised to reshape the job market and foster new economic opportunities.
Moreover, the integration of AI-led automation is projected to stimulate productivity gains and unleash human potential, resulting in the emergence of innovative business models that capitalize on AI’s capabilities. Rather than replacing existing businesses, AI is poised to create entirely new avenues for growth and job creation, reminiscent of the disruptive impact of technology in sectors like banking and services.
The healthcare industry, in particular, stands to benefit from AI-driven innovations, with startups like character.ai and Rewind pioneering personalized and intelligent solutions. By harnessing AI technologies, these companies are revolutionizing healthcare delivery, creating jobs for intermediary roles and alleviating burdens on healthcare professionals.
In the realm of IT services, global firms like Accenture have embraced AI to enhance their operations, with Indian IT services giants like TCS and Infosys following suit. The adoption of GenAI in existing workflows presents significant growth opportunities, necessitating the recruitment of skilled professionals in engineering, product management, and solution architecture to support clients in achieving their AI objectives.
Technology entrepreneurs Ashwanii Rawat and Amarsh Chaturvedi, whose previous venture in the location intelligence industry was acquired by an American company, are at the forefront of leveraging AI to drive innovation and industry transformation.