AI and the Tech Workforce: Opportunities and Challenges

KEY POINTS

• In 2023, job cuts in the tech industry have already exceeded last year's total by 5%, with predictions pointing to surpassing the 2001 job loss record, as reported by Challenger, Gray & Christmas.

• The fear of job loss is intensifying among workers, who are increasingly concerned about being entirely replaced in the workforce.

• A recent Goldman Sachs study warns that 300 million jobs worldwide may be disrupted by AI and automation, signaling a profound shift in the global job market.

The mounting fears of layoffs in the tech industry are now compounded by the emergence of advanced AI chatbots like ChatGPT, which are gradually making their way into the workplace.

This year has already seen a 5% increase in tech industry job cuts compared to the entirety of 2022, according to Challenger, Gray & Christmas. The pace of these layoffs is on track to surpass the numbers recorded in 2001, the peak of tech job losses due to the dot-com bust.

As job losses continue to rise, workers are not only anxious about being laid off but also concerned about being entirely replaced. A recent Goldman Sachs report revealed that 300 million jobs globally are at risk of being affected by AI and automation.

However, AI tools like ChatGPT should not necessarily incite fear among employees. Sultan Saidov, co-founder and president of Beamery, a leading human capital management SaaS company, suggests that AI can help people and companies work more efficiently. Beamery has its own generative pretrained transformer (GPT) called TalentGPT.

Saidov acknowledges that 300 million jobs will be impacted by AI and automation but emphasizes that this does not mean people will lose their jobs. Instead, he believes that many will see their roles change. ChatGPT and other GPT tools, which generate human-like responses, can aid workers in more ways than just facilitating conversations.

The tech industry, in particular, may see specific jobs affected more than others. However, the focus should be on embracing AI's potential to transform and enhance the workforce, rather than solely on the threat of job loss.

Embracing AI Skills: A New Frontier for Creatives and Designers

Saidov highlights that creatives in the tech industry, such as designers, video game developers, photographers, and digital artists, are among those whose jobs are less likely to be entirely eliminated. Instead, AI will enable them to create more and work more efficiently.

Reflecting on the industrial revolution and the impact of automation on farming, Saidov explains that while specific roles in farming diminished, the workforce shifted to different jobs. A similar trend is expected to occur as AI and automation become more prevalent in the workplace.

The demand for creative jobs will continue, as generative AI and other AI technologies become increasingly integrated into various industries. For example, with video game development, if the number of games produced remains consistent year over year, there may be a reduced need for game designers. However, if companies can create more games using AI technology, it could lead to an increase in the total number of games developed, thus maintaining or even expanding job opportunities for designers.

As AI continues to advance, its potential to transform and enhance the workforce should be embraced, with the focus on how creative professionals can leverage these new tools to innovate and excel in their fields.

Software Developers and Engineers: Adapting to the AI Revolution

The growing prominence of ChatGPT has left many software developers and engineers feeling uncertain about their job security, prompting some to acquire new skills and learn how to engineer generative AI to enhance their resumes.

Sameer Penakalapati, CEO of Ceipal, an AI-driven talent acquisition platform, emphasizes that GPT technology will not completely eliminate developer and engineer positions. However, the tasks and responsibilities of these roles could be altered by GPT and generative AI.

Penakalapati highlights the importance of distinguishing between GPT and generative AI when discussing the job market. While GPT is a mathematical or statistical model designed to learn patterns and provide outcomes, other forms of generative AI can reconstruct various outcomes based on patterns and learnings, closely resembling human thought processes.

For instance, Penakalapati explains that GPT can generate code within seconds, allowing software users and customers to receive what they need without the time-consuming process of relaying requirements, adjustments, and fixes to the development team. GPT can perform the tasks of a coder or tester almost instantly, compared to the days or weeks a human might take to accomplish the same tasks.

Generative AI can have broader implications for software engineers, especially in development and operations (devops) roles. From code development to deployment, maintenance, and updates in software development, generative AI can mimic an engineer's actions throughout the development cycle.

Despite the rapid integration of these tools into the workplace, Penakalapati believes it is unlikely that they will fully replace humans. Instead, a reduction in the number of developers and engineers required for software creation may be observed.

He asserts that human input will remain essential, whether it involves writing code, testing user interactions with software, or making design choices. As the industry evolves, developers and engineers must adapt to new tools and technologies while recognizing the enduring value of human expertise.

Empowering Knowledge Workers with ChatGPT Technology

The integration of GPT and AI technologies will significantly impact various roles, but every knowledge worker – those who use or handle information in their jobs – will also be affected, according to Michael Chui, a partner at the McKinsey Global Institute.

Chui explains that these technologies enable rapid creation of first drafts across various domains, including writing, computer code, images, videos, and music. Almost any knowledge worker could benefit from the increased speed and capabilities provided by AI tools like ChatGPT.

A recent study by OpenAI, the creator of ChatGPT, revealed that approximately 80% of the U.S. workforce could have at least 10% of their work tasks influenced by learning models in GPT technology. Meanwhile, around 19% of workers might see 50% of their tasks impacted.

Chui draws a parallel between the widespread adoption of tools like Microsoft Excel or Microsoft Word and the future incorporation of AI and GPT technologies. He suggests that workers in the future may find it hard to imagine a work environment without these advanced tools.

Chui emphasizes that even technologies that have significantly increased productivity in the past did not necessarily lead to fewer people working. Ultimately, the world will always have a demand for more software, and the growing presence of AI and GPT tools will continue to shape the future of work for knowledge workers.