Imagine a world where robots and smart computers work alongside humans, changing the way we do our jobs. Well, that world may come sooner than we think with the rapid development of artificial intelligence (AI). Ever since its invention in the 1950s, AI has been getting smarter and more common in our lives, to the point where it can now interact with humans, such as Alexa, and perform tasks, such as analysing medical images. Nowadays, one very prominent AI is ChatGPT. With over 100 million users globally, ChatGPT is a generative AI released in 2022 that can respond to any prompt a user can think of, which has revolutionised industries such as education and law. With AI continuing on this upwards trajectory, it begs the question – what will the future effect be of the rise in AI on the workforce?

Artificial intelligence (AI) is a specialty within computer science that is concerned with creating systems that can replicate human intelligence and problem-solving abilities.

The global AI market is valued at over $136 billion; the number of UK AI companies has increased by 688% over the last 10 years; AI industry value is projected to increase by over 13x over the next 7 years, according to GrandViewResearch. The rapid advancement of AI has led to its increasing incorporation into our day-to-day lives, especially in the workplace, increasing businesses’ efficiency by reducing cost and streamlining processes in an increasingly competitive market. As more and more corporations become dependent on AI, such as Amazon’s use for automated data extraction and personal recommendations, it makes you wonder – what will the future effect be of the rise in AI on the workforce?

The rise of AI in the workforce can be attributed to several factors. Since the first artificial intelligence system in the 1950s, a small robotic mouse that could navigate a simple maze and remember its course, AI’s progression has been astronomical. Following the initial implementation of AI in industries ranging from healthcare to finance in the late 70s and early 80s, deep learning breakthroughs, driven by powerful GPUs and massive datasets, have revolutionised computer vision, speech recognition, and natural language processing. Ongoing research continues to push the boundaries of AI in areas like reinforcement learning and quantum computing. We now live in a world where AI is extremely advanced, capable of processing information and executing tasks, storing and retrieving information as well as recognising images and speech, easily being able to converse with others. If AI stays on this path of progression, what are humans going to do when they can’t keep up anymore?

Another contributing factor to the rise of AI in the workforce is the economic incentive. The majority of studies emphasise that AI will have a significant economic impact. Research launched by consulting company Accenture covering 12 developed economies, which together generate more than 0.5% of the world’s economic output, forecasts that by 2035, AI could double annual global economic growth rates. AI will drive this growth in three important ways. Firstly, it will lead to a strong increase in labour productivity (by up to 40 %) due to innovative technologies enabling a more efficient workforce. Secondly, AI will create a new virtual workforce – described as ‘intelligent automation’ – capable of solving problems and self-learning. Thirdly, the economy will benefit from the diffusion of innovation, which is the rate at which new ideas spread through a population. This offers numerous economic benefits, including increased productivity through more efficient processes and technologies. Innovation provides a competitive advantage, leading to higher market share and job creation. It fosters economic growth by attracting consumers and export opportunities, while also improving the quality of life through advancements in healthcare and resource utilisation.

Furthermore, there are the evolving business needs. As businesses aim to remain competitive in a fast-paced global economy, they seek ways to increase efficiency and productivity. AI helps with streamlining operations and speeding up tasks, ultimately saving time and resources. Furthermore, due to the vast amounts of data modern businesses generate, AI can analyse this and provide data-driven insights to help optimise a business’ decision making. Additionally, in a highly fluctuating market, AI can help businesses adapt quickly by analysing market trends, customer feedback, and emerging opportunities.

However, despite the considerable advancement of AI and its remarkable profitability and utility for businesses, there are some possible problems with its integration into the workforce.

One of the potential downsides of AI is that it could lead to increased unemployment as machines begin to replace human workers in a variety of industries. Unemployed workers might have less real disposable income as a result, which can result in decreased consumer spending and a reduction in aggregate demand (the total demand for goods and services across an economy). This in turn can cause a fall in planned investment spending by firms as their confidence decreases, increasing the risk of a deeper recession (negative economic growth over 2 successive quarters). Furthermore, high unemployment can reduce direct and indirect tax revenue, as fewer workers are paying tax and more are receiving unemployment benefits. Most notably, this could push workers in lower socio-economic bands into levels of poverty, causing high levels of social unrest.

Another potential downside of AI is that it could widen existing economic inequality as the benefits of AI technology disproportionately accrue to those who are already wealthy and have access to the best resources. Those who own and control AI technologies can use them to analyse market trends and skyrocket productivity to accumulate significant wealth. Companies that develop and deploy AI systems, especially tech giants, can become even more powerful and wealthy, leading to a concentration of wealth in the hands of a few, while increasing the unemployment of those on the lower end of the socio-economic spectrum.  

One more potential downside of AI is that it will be difficult for rules and regulations to keep up with its complexity and rapid development. AI can learn and adapt to new data and situations, such as Google maps and facial recognition, making it difficult to define rigid rules that cover all possible scenarios. Currently, Europe’s parliament is struggling to agree on new rules to govern AI, with Dan Nechita (Head of Cabinet MEP Dragos Tudorache) saying that even trying to define AI “was a very, very, very long discussion”, showcasing the vast and complicated minefield that AI is. Furthermore, because AI has a multitude of different capabilities, some regulation will over-regulate in some instances and under-regulate in others. The use of AI in a video game, for instance, has a different effect—and should be treated differently—from AI that could threaten national security or endanger human beings. As a result, a traditional rule-based system may fail to correctly address the wide-ranging abilities of AI.

While the current capabilities and efficiency of AI mean that it certainly has a positive economic effect, the further advancement and incorporation of AI into the workforce could be extremely problematic. Governments might need to implement policies that supports workers affected by AI, such as providing retraining programs and safety nets. Businesses might also have to prioritise ethical AI development and ensure that their workforce is equipped with the necessary skills to work alongside AI. The path forward may be challenging, but it offers opportunities to redefine different jobs, reshape industries and drive progress in ways that are unexpected and transformative. AI is an exciting and powerful tool but, ultimately, its future effect on the workforce is down to us.