Artificial intelligence Part 1: restructuring the workforce - what does AI do ?

AI generated image - Chat GPT

Media reports, opinion editorials and speculation by public commentators about artifical intelligence (AI) have been fuelling considerable instability for the sharemarket listed ICT sector in major economies as well as concerns in the workforce regarding the actual impact of potential employment losses. The reality is that the impact of  AI is not well understood or clearly defined as it is an emerging technology with the full ramifications yet to be fully measured. Most job losses and employment reductions have occured in information technology companies predominantly in the software developmnent and business support teams. This however does not represent the true extent of transformation that is coming.

A key feature of the articles and reports to date has been the under representation of actual impact as published in the media. The effect of AI has essentially been over emphasised in the technology sector and underplayed in the rest of the economy. Essentially AI will impact white collar occupations the most and be more far reaching than has been thus far reported.

Current state of play

AI is created using large language-based models and works best for rules-based, screen-based work with set parameters. Workplace transformation is already occuring in -

• Knowledge work (particularly entry level)

- Administrative assistants.

- Data entry clerks

- Paralegals doing document reviews

- Junior accountants

- Basic market researchers

• Content production (that is essentially formulaic)

- Copywriters for generic marketing

- SEO (search Engine Optimisers) article writers

- Basic graphic production

- Translation of common languages

These roles are not eliminated but fewer staff are needed as productivity rises.

• Software roles (with a focus on junior roles)

- Junior coders

- QA testers

- Routine debugging of software

Senior engineers remain current however the career ladder below them is compressed and positions are reduced.

• Customer interaction roles (accelerating an existing trend)

- call centre agents

- Tier-1 technology support

- Scheduling and booking staff

These roles can be reduced or be removed by use of Chatbots and AI voice agents.

This blog will be publishing a series of posts on the use of AI and its developing and continuing effect on the workforce and the economy.