AI Will Create Abundant Work Opportunities

Talal Abu-Ghazaleh

Although Artificial Intelligence (ProPro) is certainly one of the most powerful and disruptive technologies of our time, it still raises some serious questions about the future of work forces all aroun. One of the most common fears about AI is that it will replace human workers and create mass unemployment. This fear is based on the assumption that there is a fixed amount of work to be done in the economy, and that if machines can do some of it faster and cheaper than humans, then there will be less work left for humans. This is known as the "lump of labour" fallacy, and it has been debunked by economists for centuries.

The reality is that economies are dynamic and constantly evolving. Although technological change does actually cancel some jobs, it creates new ones. For example, when the Industrial Revolution replaced manual labor with machines, it also created new jobs in factories, railways, mines, and other sectors. Similarly, when computers replaced many clerical workers in the 20th century, they also created new jobs in software, IT, finance, media, and other sectors.

The same logic applies to AI. While AI may automate some tasks that are currently done by humans, it will also create new tasks that require human input, such as designing, programming, supervising, maintaining, and improving AI systems. It will also create new sectors and industries that rely on AI, such as data analytics, biotechnology, robotics, cybersecurity, and more. According to a report by Goldman Sachs, AI could replace the equivalent of 300 million full-time jobs by 2030, but it could also create 400 million new jobs in the same period.

Moreover, technological change does not only affect the supply of labor, but also the demand for it. As machines become more productive and efficient, they lower the cost of goods and services, which increases the purchasing power of consumers. This in turn stimulates demand for more goods and services, which creates more jobs for workers. For example, when cars replaced horses as the main mode of transportation in the early 20th century, they not only created new jobs in car manufacturing and related industries, but also increased demand for travel, tourism, hospitality, entertainment, and other industries.

Therefore, we should not fear that AI will cause mass unemployment in the foreseeable future. Instead, we should expect that AI will create new jobs and increase demand for workers. However, this does not mean that everyone will benefit equally from AI or that there will be no challenges or disruptions along the way.
AI will change the nature of work and the skills required for it. One thing for sure is that workers with AI skills will replace those that do not have such skills. The person that has the skills to harness such technology will out do, and be more valued than the person that does not.

A working paper called ‘Generative AI and Jobs’ published on 21 August 2023 by the United Nations International Labor Organization (ILO), assessed the effect it will have on occupations, and it supports the conclusion that it will complement and enhance most jobs rather than replace humans. This backs what I have been saying for years. The report says:
“As a result, the most important impact of the technology is likely to be of augmenting work – automating some tasks within an occupation while leaving time for other duties – as opposed to fully automating occupations.”

I see many specialties becoming heavily reliant on AI skills, particularly the financial auditing profession, as companies employ more AI based technology which will make it impossible to perform traditional manual audits with any degree of accuracy.

I call on governments to adopt proactive policies and support, to aid consultative transitions; engage in social dialogue and pass regulation to ensure quality employment, reskilling and upskilling for all. This will aid the management of the resulting technological change that this innovation is bringing to all sectors of society.

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