I have been writing for years about the impact the AI will have on the economy, and especially on workers. Recent advances have led to many commentators remark that…
“The death of big tech as a leader of growth and earnings has been grossly exaggerated. That was the message from Surveillance guests today ahead of results from Alphabet Inc. and Microsoft Corp., especially given the pace and scope of recent technological advancements. (1)
Neuberger Berman’s Charles Kantor says artificial intelligence hasn’t been fully priced into the valuations of tech companies.
“I am quite optimistic that the very large index contributors will deliver earnings of high quality, and they’re protecting their cash flows this year,” he said. He said AI-related developments can add 500 basis points of value to tech adopters.
Rishi Jaluria of RBC Capital Markets agreed, saying ChatGPT-like technologies will offer long-lasting benefits in profitability and efficiency for the biggest players, with Microsoft on the leading edge of that race for now.
Perhaps this will help boost the American economy and keep it on steady footing despite weakness in a variety of other industries, Lara Rhame of FS Investments noted.
There are cracks forming elsewhere. We got a fresh reminder today from companies including United Parcel Service Inc. and 3M Co.
3M is cutting 6,000 jobs, underscoring that mass layoffs aren’t just a tech-sector phenomenon, as sales slow. UPS, a bellwether for the US economy because it moves a vast array of packages, sees annual sales at the low end of its forecast amid disappointing shipment volumes.
“I’m not sure that ‘afraid’ is the word that I would use, but I’m definitely cautious,” said Sarah Hunt of Alpine Saxon Woods.”
Even as the economy slows, businesses are looking for advantages in a world of higher rates and less abundant capital. In this article I discuss how AI will affect the economy and especially the labor economy, with ChatGPT… (2)
The resulting conversation is one everyone should be aware of, and plan appropriately. My questions are in Bold and ChatGPT answers follow (in italics).
What will be the impact of AI on the economy? Include how it will affect specific segments of society, industries and races/minorities? How will AI affect the labor shortage and income inequality?
AI is already having a significant impact on the economy and is likely to continue doing so in the future. Some of the key impacts of AI on different segments of society, industries, and races/minorities are as follows:
- Labor market: AI is likely to automate many jobs in the coming years, which could lead to a labor shortage in some areas while also creating new jobs in others. It may also result in a shift from full-time to part-time and contract work.
- Income inequality: While AI has the potential to create new jobs and increase productivity, it could also exacerbate income inequality. The benefits of AI may accrue primarily to those who own the technology or have the skills to work with it, leading to a wider income gap between high and low-skilled workers.
- Industries: AI is expected to impact different industries in different ways. Some industries, such as manufacturing and transportation, are likely to see significant job losses due to automation, while others, such as healthcare and education, may see an increase in demand for skilled workers.
- Minorities: There are concerns that AI could reinforce existing biases and discrimination, particularly against minorities. If AI algorithms are trained on biased data, they may produce biased outcomes, which could perpetuate systemic inequalities.
Overall, the impact of AI on the economy is complex and multifaceted. While it has the potential to bring about significant benefits, it is important to be aware of its potential downsides and work towards ensuring that its benefits are shared equitably across society.
Based on the previous questions, what needs to be done in order to “ensure that benefits are shared equitably across society?” What are some specific actions individuals, companies and government can take to ensure equitable benefits?Top of Form
Ensuring that the benefits of AI are shared equitably across society will require a multi-faceted approach involving the efforts of individuals, companies, and governments. Some specific actions that can be taken include:
- Addressing Bias: Companies and governments should ensure that AI algorithms are trained on diverse and unbiased data to avoid perpetuating systemic biases. Additionally, individuals can advocate for AI systems to be transparent and accountable, allowing for oversight and monitoring of potential biases.
- Education and Training: Governments and companies can invest in education and training programs to equip individuals with the skills necessary to work with AI technologies. This can help prevent a widening skills gap and ensure that the benefits of AI are accessible to all, regardless of their background.
- Regulation and Oversight: Governments can establish regulations and oversight mechanisms to ensure that AI technologies are developed and deployed responsibly, and that their benefits are shared equitably across society. This can include regulations that mandate the use of unbiased and diverse data, or guidelines that protect workers’ rights in the face of increased automation.
- Collaboration and Partnerships: Companies and governments can work together to develop collaborative partnerships and initiatives that support the responsible development and deployment of AI technologies. This can include efforts to ensure that AI systems are developed with the input of diverse stakeholders, including representatives of marginalized communities.
- Supporting Inclusive Economic Growth: Governments can implement policies that promote inclusive economic growth, such as investing in infrastructure, providing incentives for businesses to locate in under-served areas, and providing financial support to individuals and communities that are most impacted by automation.
Overall, ensuring equitable benefits from AI will require a sustained effort from individuals, companies, and governments to address the potential challenges and ensure that the benefits of AI are shared across society.
What can individuals do to avoid becoming victims of changes wrought by AI?
The impact of AI on individuals can vary depending on their occupation, skills, and other factors. However, there are some general steps individuals can take to prepare for and adapt to the changes wrought by AI:
- Upskill and reskill: Individuals can focus on developing new skills that are in demand in the job market. For example, developing skills in data analysis, programming, or project management can make individuals more valuable to employers and enable them to stay competitive in the face of automation.
- Stay informed: Individuals should keep themselves informed about new developments in AI and how they may impact their jobs or industries. This can include following news sources, attending industry conferences, and networking with other professionals in their field.
- Be adaptable: With the rapid pace of technological change, individuals need to be adaptable and willing to learn new skills and take on new roles. This can mean being open to new job opportunities or being willing to pivot their career trajectory as needed.
- Cultivate non-technical skills: While technical skills are important, individuals should also cultivate non-technical skills such as creativity, critical thinking, and communication. These skills can be harder to automate and will remain valuable in the face of AI and automation.
- Plan for the future: Individuals can plan for the future by setting career goals, creating a budget, and saving for retirement. This can help individuals feel more secure in the face of economic uncertainty and help them prepare for potential job losses or other disruptions.
Overall, while AI may bring about changes to the job market, there are steps individuals can take to prepare for and adapt to these changes. By upskilling, staying informed, being adaptable, cultivating non-technical skills, and planning for the future, individuals can position themselves to thrive in the face of technological change.
If a person loses their job due to AI, what can/should they do moving forward?
Losing a job due to AI can be a difficult experience, but there are steps that a person can take to move forward:
- Take time to adjust: Losing a job can be a significant life change, and it’s important to take time to adjust and process the experience. This can include taking some time off to reflect on your career goals and what you want to do next.
- Assess your skills: Assess your skills and identify any gaps that may need to be filled to prepare for the job market. Consider taking online courses or attending training programs to learn new skills that are in demand in your industry.
- Network: Reach out to your professional network, including former colleagues, friends, and family. They may be able to offer you job leads, introduce you to potential employers, or provide you with referrals.
- Consider freelancing or starting your own business: Depending on your skill set, you may be able to offer your services as a freelancer or start your own business. This can offer greater flexibility and control over your career path.
- Seek support: Losing a job can be stressful and emotionally challenging. Seek support from friends, family, or a professional counselor if needed.
- Stay positive: It’s important to stay positive and maintain a growth mindset. Believe in yourself and your ability to adapt to change and find new opportunities.
In summary, losing a job due to AI can be a challenging experience, but it’s important to take time to adjust, assess your skills, network, consider freelancing or starting your own business, seek support, and stay positive. By taking these steps, you can position yourself for success in the job market and adapt to the changing economy.
Upskilling, building community and relationships, adaptability, and fostering creativity… These are the tools we need to turn into daily practices for success and survival as workers within the “New Economy”.
We are entering uncharted territory. The economy is changing, and many are unaware of the challenges they are likely to face. Planning for the future has never been more important.
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