During the Industrial Revolution, the steam engine and assembly line represented pivotal moments for factory workers. Artificial intelligence is now poised to reinvent white-collar professions on previously unheard-of roportions. Kweilin Ellingrud, a senior partner at McKinsey and director of its Global Institute, reports that generative AI alone could affect at least 10% of tasks in the US job market. She further stresses that this wave will affect “all spectrums of jobs.” She then concludes by saying: “It is much more concentrated on lower-wage jobs, which are those earning less than $38,000. In fact, if you’re in one of those jobs, you are 14 times more likely to lose your job or need to transition to another occupation than those with wages in the higher range, above $58,000, for example.”
These changes are similar to trends seen in the past, but they also bring new challenges. During the Industrial Revolution, mechanical looms replaced textile workers while creating new positions in industrial operations and management.
Similar changes are happening on a larger scale in the current AI revolution. By 2030, McKinsey estimates that artificial intelligence might automate up to 30% of current hours worked, mostly impacting professionals in customer service, food service, production or manufacturing, and office support. The report, however, states that generative AI could enhance the way STEM (Science, Technology, Engineering, and Mathematics), creative, and business and legal professionals work rather than eliminating a significant number of jobs outright.
The main distinction between this wave of automation and past ones is that artificial intelligence can improve the capabilities of humans instead of only replacing them. This difference presents chances for experts able to modify their skills to collaborate with artificial intelligence systems.
WHICH JOBS WILL AI AFFECT FIRST?
The influence of artificial intelligence on employment is similar to earlier technological transitions but on a far larger scale. According to McKinsey’s study, by 2030, around 12 million people—from manufacturing to customer service—will have to change their careers. Workers with lower-paying jobs are up to 14 times more likely to need to switch careers than people with the highest-paying jobs, and most of them will need to learn new skills to do so. The study also iterates that women are 1.5 times more likely to change into new occupations compared to men.
“More than half of the ~8.6 million recent occupational shifts in the United States involved workers leaving roles in food services, customer service, office support, and production.”— McKinsey reports.
Sectors Most Vulnerable to Automation
The World Economic Forum’s “Future of Jobs Report 2020” indicates that accommodation and food services, manufacturing, agriculture, transportation, and retail and trade are industries with strong automation potential. According to the report, by 2025, automation and a new division of labour between humans and artificial intelligence will disrupt 85 million jobs worldwide.
Brookings also reviewed OpenAI’s GPT-4 ratings of task susceptibility and discovered that 36% of female workers are in positions where generative AI might save 50% of the time required to complete tasks, compared to only 25% of male workers. Having said that, the greatest potential for automation resides in office and administrative support fields, where women unfortunately account for the overwhelming majority of the almost 19 million Americans employed in this sector.
The International Labour Organisation recognises that this change creates both opportunities and disruption. While some industries see job losses, others grow really dramatically. For example, healthcare might see fewer administrative positions but more demand for experts able to collaborate with artificial intelligence systems. In a similar vein, tech companies anticipate significant expansion in cybersecurity, data analysis, and machine learning programming.
“The fourth industrial revolution, however, is not only about smart and connected machines and systems. Its scope is much wider. Occurring simultaneously are waves of further breakthroughs in areas ranging from gene sequencing to nanotechnology, from renewables to quantum computing. It is the fusion of these technologies and their interaction across the physical, digital, and biological domains that make the fourth industrial revolution fundamentally different from previous revolutions.” — Klaus Schwab, Founder and Executive Chairman of the World Economic Forum.
“AI is not going to replace managers, but managers who use AI will replace the managers who do not.” — Rob Thomas, IBM Senior Vice President
Jobs That Could Become History
As stated in the study by Brookings, as well as the McKinsey report, office and administrative support roles are particularly vulnerable to AI automation. This covers professions including customer service agents, administrative assistants, and data entry clerks. AI now has the ability to effectively manage tasks such as data processing, scheduling, and responding to routine customer requests.
Another McKinsey’s report, “AI, Automation, and the Future of Work: Ten Things to Solve for,” shows that only about 5% of occupations could be fully automated using current technologies. However, partial automation will be widespread—approximately 30% of the activities in 60% of all occupations could be automated.
The research indicates that activities most vulnerable to automation include:
• Physical activities in predictable, structured environments;
• Data collection;
• Data processing.
In terms of scale, McKinsey’s midpoint scenario suggests that around 15% of the global workforce (approximately 400 million workers) could be displaced by automation between 2016 and 2030. However, this impact will vary significantly by country. In advanced economies with higher wages, such as France, Japan, and the United States, automation could affect 20 to 25% of the workforce by 2030.
Some examples of how automation is manifesting in the real world:
• Amazon: Amazon uses AI-powered chatbots to handle customer service inquiries, reducing the workload on human representatives. Customer satisfaction grew as the corporation noted a notable drop in customer wait times.
• Bank of America: Bank of America’s virtual assistant, Erica, uses AI to provide personalised financial advice, answer customer questions, and perform routine banking tasks. Having managed millions of consumer interactions, Erica has shown the potential for artificial intelligence in customer service.
• Tesla and General Motors: Both Tesla and General Motors are heavily investing in automation to improve manufacturing efficiency. Advanced robots and artificial intelligence enable Tesla’s Nevada Gigafactory to produce electric vehicles at a high rate.
• Walmart and Target: Major retailers like Walmart and Target have implemented self-checkout systems to reduce labour costs and improve the customer experience. These systems allow customers to scan and pay for their items without cashier assistance.
The U.S. Bureau of Labor Statistics (BLS) has conducted extensive research on how automation affects certain sectors. Their study found that among the fastest-shrinking professions resulting from automation are personal financial advisors, interpreters, translators, radiologists, and many more. The BLS predicts that by 2029, fewer jobs will be available for these professions and others. Employees are encouraged to acquire new skills or take up different roles, as this shift may lead to significant job losses.
INDUSTRIES TAKING AI ADOPTION SERIOUSLY
Rather than complete job elimination, most workers—from welders to mortgage brokers to CEOs—will work alongside increasingly capable machines. For example, at Amazon, workers who previously manually lifted and stacked objects are becoming robot operators, monitoring automated systems, and resolving issues. This shows that jobs are more likely to be redefined than to be removed completely.
The scatter plot next page, courtesy of the World Economic Forum, Future of Jobs Survey Report 2023, illustrates the correlation between two important business metrics in various industries: the likelihood that organisations surveyed will prioritise big data and AI skills training versus the likelihood that they will adopt AI technologies and pursue automation as a business strategy.
The data above shows a clear positive correlation between AI training investment and technology adoption across industries. Electronics and IT services lead in both metrics (around 80-100%), while sectors like accommodation, Food, and leisure lag behind (around 50-60%). This suggests that industries that prioritise AI skills training are also more likely to embrace technological automation, indicating a coordinated approach to digital transformation.
Other fields have demonstrated exceptional success in incorporating AI to complement rather than replace human talents. Healthcare professionals spearhead this adaptation:
• AI helps nurse practitioners keep track of patients’ information and treatment plans.
• Physician assistants use AI to handle prescriptions and plan treatments.
• Diagnostic tools driven by AI are used by healthcare teams to look at medical images and patient histories.
Similarly, social workers are adapting by using AI to make their main job easier. These days, case management solutions assist in effectively organising appointments and monitoring client development. Rapid analysis of client needs using resource identification systems helps to link them with suitable housing, healthcare, and financial aid programs.
Human resource professionals highlight effective artificial intelligence integration using:
• AI-powered recruitment platforms evaluate resumes and conduct preliminary assessments.
• Algorithms on sites like LinkedIn and Indeed help job hunters match prospects.
• Coursera and Udacity, among other training sites, provide personalised skill development.
These changes improve job satisfaction and productivity by allowing professionals to focus on important tasks while AI handles routine duties.
AI AROUND THE WORLD
The global adoption of artificial intelligence reveals striking regional variations and implementation challenges. Based on a report by Stanford University, AI investments in the United States amounted to $67.2 billion in 2023, about 8.7 times more than those of China, the second-largest investor. Private AI investment in China and the European Union, including the United Kingdom, dropped by 44.2% and 14.1%, respectively, since 2022, while the United States saw a significant growth of 22.1% over the same period.
How the US, Europe, and Asia Have Adopted AI
The adoption of AI technologies has been uneven across different regions, influenced by factors such as economic conditions, technological infrastructure, and workforce readiness.
The United States maintains a strong position in AI development, with notable contrasts in implementation success. PwC reports sectors using AI show productivity growth nearly five times higher than less exposed industries. Job postings for AI roles have surged 3.5 times faster than overall positions since 2016, while Accenture projects an additional $8.3 trillion in gross value added (GVA) by 2035.
Europe follows a distinct development path. IDC projects AI spending to reach $133 billion by 2028, growing at 30.3% annually. The market currently stands at $47.6 billion in 2024, representing one fifth of global AI activity.
Asia exhibits a similarly dynamic environment across eight principal economies: Australia, India, Indonesia, Japan, South Korea, Malaysia, Singapore, and Taiwan. These markets show AI maturity but face distinct challenges in skills readiness and regulatory alignment. Countries like China are leading in integrating AI into various sectors, particularly manufacturing and technology. AI spending for Asia/Pacific is forecast to grow at an annual growth rate (CAGR) of 28.9% from 2022 to reach $90.7 billion by 2027. The region is also expected to see substantial job creation driven by AI innovations.
Startups Lead While Giants Follow
Analysis of recent market data by PitchBook indicates that entrepreneurial ventures have been instrumental in driving AI market expansion, with venture capital deployment reaching $3.9 billion in Q3 2024 through 206 deals. U.S.-based startups captured 74.3% of this capital allocation ($2.9 billion across 127 deals), demonstrating the region’s continued dominance in AI innovation.
Here are three notable AI startups that have spearheaded industry adoption:
1. OpenAI: OpenAI has been a pioneer in generative AI, including language models such as GPT and DALL-E. Their inventions have established a standard for AI capabilities, pushing corporations such as Microsoft to spend extensively and incorporate these technologies into their own platforms.
2. DeepMind: Known for its innovative AI research, DeepMind has made important contributions to healthcare through protein folding research. Their advances have prompted major pharmaceutical corporations to look into AI-powered solutions for drug research and development.
3. Databricks: Databricks has transformed data and AI infrastructure with its Lakehouse platform, which combines data warehousing, data engineering, data streaming, and data science. Databricks has helped companies such as J.P. Morgan Chase, McDonald’s, and Unilever streamline operations, improve customer experiences, and drive innovation by providing a unified platform for data management and analysis.
The data reveals a distinct market pattern: enterprise adoption is fuelled by startup innovation, resulting in a self-sustaining cycle of technological improvement and commercial deployment. This dynamic has created a market structure in which startups act as technology pioneers, while large companies provide the scale required for mainstream adoption and commercialisation.
“AI is not the end of jobs, but it may be the end of some jobs as we know them. It’s our responsibility to educate, retrain, and prepare the workforce for the new jobs that AI will create.” — Sundar Pichai, CEO of Alphabet
Corporate AI Adoption Trends
Large corporations demonstrate increasing commitment to AI implementation, with adoption rates jumping from 56% to 72% in 2024. This growing enthusiasm for AI technology is clearly reflected in corporate communications and earnings discussions.
There were 394 earnings calls in 2023 that talked about AI, which is almost 80% of all Fortune 500 companies. This is a big jump from the 266 calls that talked about AI in 2022. Since 2018, almost twice as many Fortune 500 earnings calls have talked about AI. At 19.7% of all earnings calls, generative AI was the most common theme that was cited.
Accenture projects that 63% of companies will strengthen their AI capabilities by 2026. Corporations should prioritise operational efficiency improvements while reducing costs through automation. Customer experience enhancement drives many initiatives, with revenue growth through AI implementation becoming a key strategic goal.
This creates a symbiotic relationship where startups pioneer innovations and large corporations provide scale. Success increasingly depends on bridging technological divides between advanced and emerging economies while maintaining innovation momentum across all sectors. The challenge lies not just in developing new AI capabilities but in ensuring their benefits spread equitably across the global economy.
CHALLENGES OF AI IMPLEMENTATION IN THE WORKPLACE
As AI disrupts contemporary workplaces with unprecedented speed and complexity, organisations must strike a delicate balance between maximising its potential and managing the human implications of this technological shift. From workforce adaptation issues to serious ethical concerns, the integration of AI into professional contexts provides an array of possibilities that needs careful analysis and strategic planning.
Workforce Adaptation and the Skills Gap
AI’s expanding influence includes cognitive and creative tasks, which were previously considered secure, as indicated by the Organisation for Economic Co-operation and Development’s (OECD) research. This affects industries including finance, insurance, and technology, where algorithmic management is progressively supervising staff performance and work operations. Training programs today have to cover technical skills as well as adaptation to AI-supervised workflows.
Established companies have created all-encompassing strategies to handle skill transitions. Google’s Apprenticeship Program sets an example by providing specific programs in Data Analytics, Digital Marketing, and Information Technology. Boeing’s Technical Apprenticeship Program (BTAP) exemplifies the importance of industry collaboration by providing mentorship and practical experience in emerging technologies.
According to Accenture’s research, in some sectors, artificial intelligence could boost labour productivity by up to 40%, fundamentally altering how white-collar professionals perform their daily work. The International Labour Organisation stresses that this won’t just get rid of jobs entirely but will change them, requiring individuals to learn new skills to work alongside artificial intelligence.
“In the future, I believe we will see more collaboration between humans and AI, with machines taking on tasks that are repetitive and mundane, freeing humans to focus on problem-solving, creativity, and empathy.”
— Fei-Fei Li, Co-Director of Stanford Institute for Human-Centered Artificial Intelligence (HAI)
Ethics in the Use of Artificial Intelligence
IBM’s framework for ethical AI identifies three critical issues that need attention:
1. Data Responsibility and Privacy: Implementing strong governance processes and compliance measures.
2. Fairness and Transparency: Creating bias-free algorithms with explainable outcomes.
3. Accountability and trust: Establishing defined responsibilities and audit methods.
The ethical consequences go beyond individual companies. AI systems learn from historical data, which may have embedded biases that, if not addressed, might perpetuate prejudice. This necessitates continual monitoring and modification to achieve equitable outcomes for all populations.
Organisations should consider implementing:
• Strong privacy practices and data anonymisation techniques;
• Informed consent methods for data collection and use;
• Clear guidelines for AI development and deployment;
• Regular monitoring and compliance methods.
This transformation necessitates careful management to maintain an equitable allocation of possibilities. The ongoing dialogue among technologists, ethicists, and legislators is critical for defining rules for ethical AI deployment while protecting individual rights and promoting equitable opportunity.
“The ethical challenge of AI is to ensure that it serves humanity as a whole, not just a privileged few. This requires a human-centred approach that respects human dignity, human rights, and fundamental freedoms.” — UNESCO Recommendation on the Ethics of Artificial Intelligence.
PREPARING FOR TOMORROW’S WORKPLACE
AI’s evolution of the workplace brings with it both opportunities and pressures for adaptation. While McKinsey forecasts that 60% to 70% of present employee duties might be automated, the World Economic Forum predicts that 97 million new jobs would emerge by 2025. The simultaneous displacement and creation of jobs indicates a fundamental shift in how we operate.
The World Economic Forum’s Future of Jobs Report emphasises the value of upskilling and reskilling. It asserts that organisations must address the widening skills gap caused by technological adoption and disruption. The report underlines the importance of personalised, integrated, hybrid, and lifelong learning. It also notes that the skill sets required for modern jobs have changed dramatically and are projected to evolve further.
Businesses can use AI to create jobs by investing in technology that improves productivity and upskills their employees. Companies that use AI-driven analytics, for example, might streamline processes and create positions dedicated to analysing data insights rather than manual data processing.
In this day and age, it is imperative to develop skills that are resistant to automation. Critical thinking, creativity, and emotional intelligence are particularly valuable. Success necessitates keeping up with technical improvements while developing distinctly human talents.
That being said, it is imperative that all parties are involved in this change. Companies, especially, must foster a culture of constant learning while adapting their business models. Government assistance is critical through targeted training programs and statutory protection for displaced workers. Companies gain from investing in employee development, which helps employees adapt to changing technology and processes.
These advances point to a future workplace in which human expertise and AI capabilities complement one another. As people and institutions adjust to these changes, the emphasis switches from displacement concerns to optimisation potential.
Preparing for tomorrow’s workplace necessitates a collaborative effort from individuals, organisations, and governments. With adequate planning and assistance, the AI transition can generate more opportunities than it destroys, resulting in a more productive and inclusive workplace.
By Erfan Alam Serniabat
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Issue FEBRUARY – MARCH 2025 – World Economic Journal https://www.zinio.com/publications/world-economic-journal/44375