the boom of “Generative” Artificial Intelligence McKinsey said it could bring “the next productivity frontier” to the workplace, but it could also cause job losses and disruption for some knowledge-based workers, such as software developers and marketers.
Consulting firms estimate that integrating generative AI tools into the workplace could, in theory, automate 70% of the time employees spend completing work tasks. This could save many employees time on routine tasks, which in turn could improve the company’s profitability, McKinsey said in a recent report.
On the other hand, it could be hugely beneficial for the US economy as a whole, including a $4.4 trillion increase in national GDP annually.
But these productivity gains can come with downsides, and some companies may decide to cut headcount because employees don’t need as much time to complete tasks. Those most at risk from advanced forms of AI are knowledge-based workers, who traditionally tend to be employed in jobs with higher wages and greater job security than blue-collar workers.
As a result, most knowledge workers will change their jobs over time, McKinsey global partner Michael Chui told CBS MoneyWatch.
Generative AI “gives superpowers” by making employees more productive, Chuy said, but employees need to adapt. “This will require reskilling, flexibility, and learning how to learn new things.”
McKinsey said AI could replace half of workers’ daily work activities by 2045, eight years earlier than previous estimates.
Where AI thrives
Admittedly, AI won’t change all jobs, and it may impact some areas of the enterprise more than others. Software development, customer service operations and marketing top the list, said McKinsey senior partner Rodney Semmel.
Software engineering teams can rely on generative AI to reduce the time spent generating code. Big tech companies are already selling AI tools for software engineering, with 20 million programmers using them, according to the company.
Customer service operations could also be transformed as AI-powered chatbots create fast, personalized responses to complex customer questions. Generative AI can retrieve data for a particular customer quickly, reducing response time for human sales reps.
Marketers can also use AI to assist content creation, help interpret data, and optimize search engines.
McKinsey experts recommend that workers concerned about their jobs should stay on top of emerging technologies such as generative AI and understand their place in their respective fields.
Semmel advised to “act early in the hiring process” to gain an edge in the job market.
Still, Semmel says most jobs don’t change overnight.
“In customer service and marketing, how nascent this technology is and how much effort needs to be expended to make it work safely and reliably at scale, and most of the human professional companies It’s worth remembering that this is the method we want to use,” he pointed out.
A look at past technological advances provides insight into how AI could impact workers.
“How many jobs were lost when Google came out?” Semmel asked.. “I’m pretty sure the answer is non-zero, but the company didn’t do a major restructuring because of all the work that was no longer needed in document searches.”
Semmel says that when business owners are asked how they are using AI technology, the common answer is “writing birthday poems or making a toast.” So AI “is still a long way from actually transforming business,” he added.
