Twenty-five percent of jobs will be negatively impacted over the next five years, according to a new report by the World Economic Forum. In a study, New York City-based investment bank Goldman Sachs predicts that the fast-growing mass adoption of AI will impact 300 million jobs.
We are now seeing the effects of helpful but disruptive technology. Chegg, an educational company, and IBM have both announced that AI will cause a change within their respective organizations. Chegg saw its shares fall in value. IBM will enact hiring freezes and allow attrition without recruiting new personnel, as AI will take over their jobs.
AI Schools Chegg Stock
Shares in online learning company Chegg plunged after it was one of the first organizations to admit that AI affected its business model. Chegg recognized that students were turning to OpenAI’s ChatGPT for help. The AI alternative hurts Chegg’s financial situation as its shares fell nearly 50% on Tuesday morning.
The education company highlights how quickly AI can inexpensively replicate services and products. The Financial Times reported that California-based Chegg saw a decline in revenue and a loss of subscribers. In response to the new reality, The company started CheggMate, a service created with ChatGPT-4 to offer tailored content via AI.
Millions Of Jobs Predicted To Be Impacted
According to a new report by the World Economic Forum released on Monday, a quarter of jobs will be impacted over the next five years. The fast-growing trends of artificial intelligence, digitization, renewable energy and supply chain reshoring will bring about a critical shift in the global labor market. The WEF predicts a “new era of turbulence,” as many workers won’t have the requisite skills to keep up with the changes. Those with a technology, data analytics or cybersecurity background will benefit in the new environment.
The WEF study surveyed more than 800 companies that collectively employ 11.3 million workers across 45 countries worldwide. Global employers anticipate creating 69 million new positions by 2027 and eradicating 83 million jobs—a net loss of 14 million roles. Clerical workers will bear the brunt of the fast-moving changes. Around 26 million jobs in administrative positions will be cut due to AI.
Suppose generative AI lives up to its hype. In that case, the workforce in the United States and Europe will be upended, Goldman Sachs reported this week in a sobering and alarming report about AI’s ascendance. The investment bank estimates 300 million jobs could be lost or diminished by this fast-growing technology.
On the positive side, Goldman contends automation creates innovation, leading to new jobs. For companies, there will be cost savings thanks to AI. They can deploy their resources toward building and growing businesses, ultimately increasing annual global GDP by 7%.
IBM’s Hiring Freeze on Roles That AI Can Replace
Armonk, New York-based International Business Machines Corp. CEO Arvind Krishna announced it would pause hiring for roles that can be replaced by artificial intelligence. Functions, including administrative-oriented back office roles and human resources, are targeted. Krishna points out that the tech company has around 26,000 workers that are not client-facing, and about 30%— representing 7,800 people— could be displaced through attrition due to AI over the next five years. IBM boasts 260,000 workers and will keep hiring for software development and customer-facing roles.
The Godfather Of AI Speaks Out
Geoffrey Hinton is considered the “Godfather of AI” due to his long-standing involvement with this technology. After a decade of working at the online search giant, Hinton recently left Google, his current employer, reported the New York Times
In the NYT today, Cade Metz implies that I left Google so that I could criticize Google. Actually, I left so that I could talk about the dangers of AI without considering how this impacts Google. Google has acted very responsibly.
— Geoffrey Hinton (@geoffreyhinton) May 1, 2023
His rationale for his departure was over concerns about the adverse impact on people due to the proliferation of AI. He shared his apprehension over misinformation, disruptions of the job market, and other severe existential risks. At 75 years of age, the AI Godfather left the search giant to freely speak about the potential damages AI can wreak without being tied to Google. The AI pioneer said that he regretted his contribution to the space.
Source: Forbes
