The integration of AI into various industries has been at the forefront of a socio-economic debate for years. Many are concerned that as AI and automation become increasingly sophisticated, they could lead to job displacement and increased income inequality.
1. Job Displacement: AI can automate numerous tasks, which could potentially displace jobs, particularly in sectors that rely heavily on manual and repetitive tasks. For instance, in manufacturing, machines can now carry out repetitive tasks that were previously performed by humans. A study by the World Economic Forum estimates that by 2025, machines are expected to perform more current work tasks than humans compared to now (37% compared to 71%).
Here’s related news: [McKinsey predicts COVID-19 will fast forward the automation of jobs](https://www.businessinsider.com/mckinsey-predicts-coronavirus-will-speed-up-automation-of-jobs-2020-5)
2. Increased Productivity: On the other hand, AI has the potential to increase productivity. Machines can work around the clock and are not prone to human errors, which in turn can result in increased output and efficiency. They can also perform high risk tasks in hazardous environments, saving humans from potential accidents.
3. Job Creation: AI also has the potential to create new jobs. It is expected that while AI might displace certain jobs, new ones may be created that focus on the development, deployment, and maintenance of AI technology. Research by Gartner predicts that AI will create 2.3 million jobs while eliminating 1.8 million by 2020.
Here’s related news: [Gartner says AI will create more jobs than it eliminates](https://nordic.businessinsider.com/gartner-says-ai-will-create-more-jobs-than-it-eliminates–/)
4. Increased Income Inequality: Many worry that AI could lead to increased wealth and income inequality. As capital becomes more productive with the integration of AI, its owners (already relatively wealthy) could see a disproportionally large increase in wealth, exacerbating wealth inequality.
5. Capability and Skills Gap: AI and automation would invariably require employees to upskill or reskill to keep up with changes in job requirements. Not everyone may have the opportunity or resources to learn these new skills, leading to a capability gap.
6. Socio-Economic Trade-offs: There are socio-economic trade-offs as well. Fewer jobs mean less income for people, which may lead to a decrease in consumer expenditure, affecting the economy as a whole.
One strategy to potentially mitigate these impacts is through reskilling initiatives and policies that promote the development of skills necessary for the digital age.
AI’s impact on jobs is a complex issue with no one-size-fits-all solution. Policymakers, companies, and individuals will all have important roles to play in navigating these changes.
Here’s a thought-provoking article on the subject: [5 things we need to know about the future of jobs](https://www.weforum.org/agenda/2016/01/5-things-we-need-to-know-about-the-future-of-work/)