AI May Not Steal Many Jobs After All It May Just Make Workers More Efficient
AI's rise has sparked anxiety about its potential to eliminate jobs, but insights from various companies paint a different picture. We find ourselves at the forefront of technology that's reshaping the workforce, not by wiping out jobs, but by enhancing how workers perform their tasks.
Take Alorica, for example, a customer service company based in Irvine, California. They've rolled out an AI translation tool allowing their representatives to communicate with customers speaking 200 different languages and 75 dialects. Imagine this scenario: A representative who only speaks Spanish can effectively handle inquiries from Cantonese-speaking customers, thanks to the AI technology smoothing out language barriers. More remarkably, Alorica is not cutting jobs; they continue to broaden their workforce.
Concerns linger around whether AI will replace human jobs. Yet, the sentiment among economists is not as gloomy as one might think. Nick Bunker from the Indeed Hiring Lab weighs in, arguing, "AI will affect many, many jobs — maybe every job indirectly to some extent. But I don’t think it’s going to lead to mass unemployment... Technology destroys but also creates.” The history of technological advancements is rich with examples where the introduction of new tools eliminated certain jobs but simultaneously generated new categories of employment we couldn't have imagined.
So, what exactly is AI? Essentially, it's the capability of machines to execute tasks once thought to need human intelligence. Its roots trace back to the 1950s with initial creations like the Logic Theorist and have evolved significantly, especially with the advent of voice assistants like Siri and Alexa or IBM's Deep Blue, which famously defeated chess grandmaster Garry Kasparov.
The explosion of interest around AI surged again with the launch of OpenAI's ChatGPT, which showcased AI's ability to have conversations, generate code, compose music, and complete essays — all fueling fears among many job sectors. Sam Altman, CEO of OpenAI, voiced these concerns, stating such tools could fundamentally alter job functions.
Despite these fears, no clear indications have emerged to show AI is curtailing overall employment opportunities. The White House Council of Economic Advisers recently reported finding "little evidence" supporting fears of impending layoffs. They noted, "history shows technology typically makes companies more productive, speeding economic growth and creating new types of jobs.” This aligns with findings from economist David Autor, who documented how 60% of jobs existing today were non-existent back in 1940.
The firm Challenger, Gray & Christmas, which monitors job cuts, noted they haven't encountered significant layoffs directly tied to AI advancement yet. Andy Challenger, the firm's sales leader, remarked, “That may come in the future. But it hasn’t played out yet.”
On the flip side, cases exist where businesses have dramatically downsized their human workforce due to AI. Suumit Shah, the entrepreneur behind Dukaan—a company helping users establish e-commerce sites—recently drew plenty of attention when he revealed he'd replaced 90% of his customer support staff with AI-enabled chatbots. Shah reported faster resolution times for customer queries, plunging the time taken from two hours to just over three minutes and cutting operational costs drastically.
On the other hand, it doesn't always mean job losses; for example, IKEA has embraced AI by implementing chatbots to address simpler inquiries within their customer service. Rather than laying off employees, they’ve retrained around 8,500 staff members to tackle core tasks like interior design advice and complex customer calls, thereby eleving the overall service provided.
Researchers from several esteemed institutions, including Harvard, surveyed the impact of AI on employment. Their findings pointed out concerning trends, with roles like writers and coders seeing declines the quicker AI tools like ChatGPT emerged. A collaborative study by Princeton, Penn, and New York University pinpointed telemarketers and language teachers as vulnerable to AI disruptions.
Despite this, AI's presence often liberates individuals from mundane tasks, letting them engage more creatively. A research study conducted by Erik Brynjolfsson of Stanford alongside MIT affiliates followed 5,200 customer support agents leveraging AI assistance and found those using AI suggestions became 14% more productive. Among the least experienced personnel, productivity gains surged up to 34%.
At Alorica's customer service center, similar stories emerged. Agents trained to use AI tools saw their average handling time for calls shrink from over eight minutes to just six minutes. Imagine clearing ten customer calls instead of eight within the clocked eight-hour workday! A customer complaint about receiving the wrong product can now be rectified swiftly: "Hit replace, and the product will be there tomorrow," says Mike Clifton, Alorica's co-CEO.
They've also started employing real-time voice language translation, proving beneficial as it allows multilingual interactions between customer representatives and clients without necessitating external hiring. With their continuous quest for hiring—favoring applicants comfortable with new tech—Alorica seems to be fortifying their operational capabilities as they skim through the greatest benefits AI grants without dismantling their workforce.
To summarize, even though fears around job loss due to AI loom large, many firms have begun leveraging this technology to __________ efficiency and productivity rather than strictly eliminating positions. Historically, society has repeatedly adapted to technological changes, continually discovering new functions and occupations, so the outlook may not be as bleak as once presumed. AI might, after all, signify not just change but evolution—an evolution toward enhanced productivity and roles we have yet to envision.
