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How AI Impacts Low-Skilled Workers: Pros and Cons

How AI Impacts Low-Skilled Workers Pros and Cons
Photo Courtesy: Kiran Kumar Reddy Yanamala

By: Kiran Kumar Reddy Yanamala

Artificial Intelligence (AI) is rapidly reshaping the landscape of the global workforce, ushering in an era of unprecedented technological advancement. As AI systems become more sophisticated, their influence permeates every sector, from manufacturing to retail. This transformative wave promises to revolutionize the way we work, offering remarkable opportunities for enhanced productivity, innovation, and economic growth. However, it also brings formidable challenges, particularly for low-skilled workers who are most vulnerable to job displacement and economic upheaval. This article delves into the dual-edged sword of AI’s impact on low-skilled workers, exploring the potential for new job creation, skill enhancement, and workplace safety while also addressing the pressing concerns of job loss and growing inequality.

Opportunities for Low-Skilled Workers

Job Creation in New Industries

AI’s advancement leads to the creation of new industries and job roles that didn’t previously exist. For instance, as AI technology expands, there is a growing demand for data annotators, machine learning trainers, and AI maintenance staff. According to the World Economic Forum, AI is expected to create 97 million new jobs by 2025 across various sectors, including AI development, cybersecurity, and digital marketing.

Enhanced Productivity and Skill Development

AI can augment the productivity of low-skilled workers by automating repetitive tasks and allowing them to focus on more complex and fulfilling activities. AI-driven tools and training programs can help workers upskill and reskill, making them more adaptable to changing job requirements. For example, Amazon’s Career Choice program, which provides funding for education and training, has been pivotal in helping employees transition into more advanced roles within the company.

Improved Workplace Safety

AI-powered robots and automation systems can handle hazardous tasks, reducing workplace injuries and fatalities. In the manufacturing sector, collaborative robots (cobots) work alongside humans, taking on dangerous tasks and creating a safer working environment. The International Federation of Robotics reports that the use of industrial robots has significantly reduced workplace accidents in factories.

Challenges for Low-Skilled Workers

Job Displacement

One of the primary concerns is the displacement of low-skilled workers due to automation. Industries like manufacturing, retail, and logistics are increasingly adopting AI-driven technologies that can perform tasks traditionally done by humans. A study by the McKinsey Global Institute estimates that up to 800 million jobs could be automated by 2030, with low-skilled workers being the most affected.

Economic Inequality

The benefits of AI are not evenly distributed, potentially exacerbating economic inequality. High-skilled workers and those in tech-savvy industries are more likely to benefit from AI advancements, while low-skilled workers may face reduced wages and job insecurity. The Brookings Institution highlights that regions with a high concentration of low-skilled jobs are more vulnerable to the negative impacts of AI.

Need for Policy Intervention

Governments and policymakers must address the challenges posed by AI to ensure a fair transition for low-skilled workers. This includes investing in education and training programs, providing social safety nets, and encouraging businesses to adopt ethical AI practices. The European Union, for example, has introduced initiatives aimed at reskilling workers and promoting inclusive growth in the digital age.

Case Studies

Walmart’s Use of AI for Inventory Management

Walmart has implemented AI technology to streamline inventory management and reduce operational costs. By using AI-powered robots to monitor stock levels and track product availability, Walmart has significantly improved efficiency. While this has led to a reduction in certain manual tasks, Walmart has also invested in training programs to help employees transition into more tech-focused roles within the company.

Siemens and Collaborative Robots

Siemens has integrated collaborative robots (cobots) into its manufacturing processes to work alongside human employees. These cobots handle repetitive and dangerous tasks, allowing workers to focus on more complex and creative activities. Siemens has reported a decrease in workplace injuries and an increase in overall productivity, demonstrating how AI can enhance worker safety and job satisfaction.

Riyadh’s AI Training Initiatives

The government of Saudi Arabia has launched several initiatives to prepare its workforce for an AI-driven future. These programs focus on reskilling low-skilled workers through AI training and education, ensuring they are equipped with the necessary skills to thrive in the evolving job market. By prioritizing education and training, Saudi Arabia aims to mitigate the negative impacts of AI on its workforce.

Conclusion

AI holds the potential to revolutionize the workforce, offering numerous opportunities for productivity and growth. However, it also presents significant challenges, particularly for low-skilled workers. To harness the benefits of AI while mitigating its adverse effects, a collaborative effort involving businesses, policymakers, and educational institutions is essential. By proactively addressing these challenges, we can ensure that the AI-driven future is inclusive and beneficial for all workers.

References

  1. World Economic Forum. (2020). “The Future of Jobs Report 2020.” Retrieved from weforum.org
  2. Amazon. (2021). “Amazon Career Choice.” Retrieved from amazon.com
  3. International Federation of Robotics. (2021). “World Robotics Report.” Retrieved from ifr.org
  4. McKinsey Global Institute. (2017). “Jobs lost, jobs gained: Workforce transitions in a time of automation.” Retrieved from mckinsey.com
  5. Brookings Institution. (2019). “Automation and Artificial Intelligence: How machines are affecting people and places.” Retrieved from brookings.edu
  6. European Commission. (2020). “Digital Skills and Jobs Coalition.” Retrieved from ec.europa.eu

About the Author

Kiran Kumar Reddy Yanamala is a Sr System Analyst known for enhancing HR systems with automation and innovation. Kiran holds a Master’s in Information Systems and a B.Tech in Computer Science. Kiran’s expertise in Workday development has led to significant improvements in talent management and system analysis. Kiran is recognized for their leadership and mentorship within the professional community.

 

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