Generative AI remains a hot-button issue in the job market. Many workers and employees fear the technology will soon automate most tasks, leading to job losses. However, experts and analysts say many companies have been slow to adopt the technology, and its impact has yet to be widely felt.

Two years after the generative AI technology became a household name due to ChatGPT, AI's benefits and potential impact have been widely discussed. Like many new technologies, generative AI was met with excitement and caution.

As a technology with plenty of use cases across several industries, ChatGPT and generative AI instantly caught the attention of many, and some even labeled this new technology as a threat to the job market. But so far, experts say that the feared impact on the job market and displacement of jobs has been slow and uneven.

Revisiting generative AI

Generative AI is a subclass of artificial intelligence that can be trained to create content, images, and music and can also carry out human-like conversations. There are different examples and exciting use cases for generating AI which cuts across industries. Here are some of the diverse and entertaining applications for generative AI:

• Arts and entertainment. Many companies and individuals are now using generative AI to create art, write and compose music, generate videos and images, or even draft movie scripts. We can now find specialized platforms that can create images for us based on the prompts that we provide. For example, AI-generated music is now common, but its popularity and convenience have caused a few issues. A popular example is Drake, who boldly embraced generative AI for creating music.
• Technology and communications. Businesses in technology and communications also benefit from the growth of generative AI. A popular application of generative AI is in chatbots or programs designed to simulate human conversations through text or voice prompts. This tool allows a customer to communicate or even complete a transaction with a digital device as if talking with a real person. Many top US companies now rely on chatbots to augment their technical and customer support requirements. For example, companies like Amazon and T-Mobile now rely on chatbots to connect with and attend to the concerns of their customers.
• Design and architecture. Many studios and professionals also rely on generative AI to get inspiration for designs and visualizations of projects. Generative AI's use cases cut across the architectural design process, but many professionals use the technology for their design development and schematic design phases.
• Science and medicine. Generative AI has found plenty of uses in the science and medical field. Traditionally, this field has faced challenges like high medicine costs, long drug development timelines, costly research and development, and even provider burnout. With the emergence of generative AI, the industry has found the perfect tool to address these concerns. A few companies in this field now rely on technology to fast-track drug development and clinical trials, enhance medical imaging, and even lighten administrative load. However, many of these generative AI tools remain primarily untested. Thus, these may lead to questionable or even erroneous results.
• e-Commerce. Thanks to generative AI, companies can now enhance the customer experience. Today, it's easier for companies to customize their promotions, marketing messages, and pricing to meet different customer requirements. A business owner can also automate several transactions and business processes, such as order-taking, inventory, customer support, and returns management. Since businesses can automate these essential administrative tasks, owners can cut costs and focus on other important aspects of the company.

Experts weigh in: AI adoption across industries varies, effects on the job market are "muted"

Researchers and analysts have been tracking the impact of generative AI on various sectors and its effect on the job market. For some observers, AI threatens the job market and can potentially displace workers and employees from their current jobs.

According to Joseph Briggs and Devesh Kodnani, researchers at Goldman Sachs, although there was a surge in AI investments, only 5% of businesses in the US report using AI to create products or services. The Goldman Sachs researchers also clarified that the technology's adoption varies across industries. For example, AI is primarily used in healthcare, financial services, industrial maintenance, and transportation. Many financial institutions today use AI for fraud detection and make instantaneous business decisions.

The researchers further explained that AI's effect on the job market is "muted." Based on their research, companies rarely cite AI as a reason for workers' and employees' layoffs.

However, other analysts still expect AI to impact the labor market significantly. Since generative AI excels in automating non-routine cognitive processes, it can disrupt a substantial part of the job market. Another Goldman Sachs study suggests that generative AI technology can automate up to 300 million full-time jobs in the United States and Europe. A McKinsey analysis predicts that generative AI can automate around 29.5% of the hours performed in the US economy.

How does generative AI impact different occupations?

The International Labour Organization (ILO) offers insight into how generative AI may impact the job market. What's interesting about the ILO report is that it uses a specific methodology to estimate the technology's impact on occupations, then on employment.

The ILO report relied on four categories for its framework- automation potential, augmentation potential, the big unknown, and not affected.

• Automation potential—ILO refers to jobs that can theoretically be performed by AI or automated.
• Augmentation potential—According to the ILO, these jobs can be performed using technology but still require human intervention. Generative AI can augment these jobs, speeding up tasks and allowing workers to focus on more creative aspects of the job.
• Big unknown: The ILO study also references the "big unknown", a category for jobs where tasks can be done with generative AI. According to the researchers, this balance can shift over time, moving some functions to automation and others to augmentation potential.
• Not affected: Yes, there are plenty of jobs not affected by generative AI, mostly physical tasks.

So, what are the most vulnerable jobs right now?

According to the ILO, jobs in high-income countries are most exposed to automation, as these countries boast a more significant economic and diverse labor market. Jobs in low-income and developing countries are less likely to be affected. Experts explain that most jobs in these regions aren't exposed to generative AI, particularly those in the transport, agriculture, and food vending sectors.

The most vulnerable jobs can be potentially automated in the future. Here are some of the popular jobs and tasks that are most vulnerable to automation and the impact of generative AI:

• Clerical and administrative work. The technology can easily automate administrative tasks like document processing, data entry, and customer service. AI-driven customer service thrives across industries, with Google and Apple leading the charge. Also, if you contact gaming websites like crypto casinos, there's a big chance that a chatbot runs its Live Chat facility.
• Financial services. Generative AI also benefits companies that are involved in financial services. The technology helps companies streamline and optimize their business processes, such as credit decisions, client-investor communications, financial risk management, and quantitative trading. One popular application of generative AI in finance is in lending. Today, lending companies use machine learning and pattern recognition to check credit scores and histories and even assess the creditworthiness of the applicants.
• Software development. Jobs that involve code generation, testing, and software engineering are also at risk of automation.
• Media and entertainment. Generative AI has become a hot-button issue among workers and employees involved in media and entertainment. For example, Hollywood and the entertainment industry, in general, are concerned that this new technology may lead to automation or, worse, job losses. The worker's and content creators' concerns are valid; generative AI can easily generate the same types of outputs they use and produce, from stories, scripts, and videos to marketing campaigns. And what's more striking is that generative AI can complete these tasks in a shorter period at a fraction of the cost.

So, what can individuals, industries, and the job market do?

According to an article by MIT Sloan on Generative AI’s Impact on Work, the promised automation and revolution of generative AI in the job market have yet to materialize. Experts also mentioned that the technology's impact has been "muted," with industries responding differently to it.

But this doesn't mean the technology will not affect us or future job seekers. It's only a matter of time before generative AI can entirely disrupt and change the job market.

So, while it's still in its infancy, it's important for everyone in the job market to reskill and upskill. Experts say that reskilling and upskilling today's workers can reduce the disproportionate effect of technology on marginalized groups and minorities. As an employee or someone planning to enter the workforce, it's important to undergo training and get more education to gain new skills and adapt to the changing work landscape, especially if you're in the high-risk category.

Also, by reskilling and upskilling, you will be able to transition to a new role more easilywhile leveraging the technology's great potential.

Owen

I write about Bitcoin and cryptos, the latest news on AI and tech, and follow the latest trends in online gambling, including provably fair games. Educator by profession, with a passion for writing.