In the modern age, artificial intelligence (AI) has transformed the way we work and the impact on labor markets has been profound. A decade ago, economists warned that 47% of American jobs were at risk of automation. Recent studies have lessened this fear, indicating that fewer workers are exposed to automation than previously thought. AI has shown to be more beneficial for skilled jobs, as new AI is better at coding and creativity, and has boosted the productivity of lower-ability workers more than higher-ability workers.
In translation, AI has revolutionized the process, with workers becoming copy editors who tidy up the first drafts produced by AI, easing newbies into the industry. However, there are concerns about how AI is affecting sales, as top performers are using technology to find leads and take notes, pulling away from their peers. As Stefano Natalicchio of Stanford argues, “The richer are getting richer and the poorer are getting poorer.”
The impact of AI on labor markets is being felt in various industries, including translation, customer service, and sales. While translation has seen a shift in job types available due to AI, customer service offers difficulty as firms have struggled to successfully automate it. At the same time, customer service workers are becoming more open to the use of AI assistants, as their productivity has been shown to increase.
Sales representatives may see the greatest impact from AI, with software analyzing calls and identifying the most effective tactics. This productivity growth across firms tends to lead to raising the threshold for bonuses, which in turn can lead to low performers being pushed out of the workforce.
As AI continues to advance, labor markets are sure to see further changes. The impact of automation is worst for workers when productivity gains are small. The new tech has the potential to lead to much greater efficiency, though the picture on inequality remains unclear.
In conclusion, AI continues to revolutionize the way we work, and while it brings about efficiencies, it also poses challenges in terms of inequality. It remains to be seen how labor markets will adapt to the brave new world of AI.
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