AI Disrupting Major Companies and Projected to Negatively Impact 25% of Jobs in Next 5 Years
Artificial Intelligence is already causing disruption and job losses at major companies like IBM and Chegg. As AI adoption continues to grow, a new report by the World Economic Forum predicts that 25% of jobs will be negatively impacted over the next five years. Meanwhile, Goldman Sachs estimates that AI’s mass adoption will affect 300 million jobs, leading to a “new era of turbulence” in the global labor market.
One of the first organizations to feel the effects of AI was Chegg, an educational company that saw its shares fall in value after students turned to OpenAi’s ChatGPT for help. Chegg recognized that AI could inexpensively replicate its services and products, leading to a decline in revenue and a loss of subscribers. In response, the company started CheggMate, a service created with ChatGPT-4 to offer tailored content via AI.
IBM, a major tech company based in Armonk, New York, announced that it will enact hiring freezes and allow attrition without recruiting new personnel in roles that can be replaced by artificial intelligence. CEO Arvind Krishna stated that about 30% of the company’s 26,000 non-client-facing workers, representing 7,800 people, could be displaced through attrition due to AI over the next five years. IBM will continue hiring for software development and customer-facing roles.
Even the “Godfather of AI,” Dr. Geoffrey Hinton, expressed concerns over the proliferation of AI and its potential to cause severe existential risks, including misinformation and job market disruptions. After a decade of working at Google, Hinton recently left the company to freely speak about the potential damages that AI can wreak.
While automation does create innovation and lead to new jobs, as Goldman Sachs notes, the current transition to AI is causing significant disruption and job losses. The new reality of AI’s impact on the workforce highlights the need for reskilling and upskilling workers to keep up with the changes in the labor market.
In conclusion, the adoption of AI is causing significant disruption and job losses at major companies like IBM and Chegg, and the trend is expected to continue. The World Economic Forum predicts that a quarter of jobs will be impacted over the next five years, leading to a “new era of turbulence” in the global labor market. While the impact of AI on the workforce is significant, it also presents opportunities for innovation and growth in businesses. However, reskilling and upskilling workers are essential to ensure they have the requisite skills to keep up with the changes in the labor market.
By: Mr. WWK