AI: The Job Killer or the Jobs Creator?
The fear that Artificial Intelligence (AI) will lead to widespread unemployment over the long term is understandable, though it might be exaggerated. While job displacement could occur, AI also holds the potential to bring about innovative solutions and boost overall employment. The impact of AI on job outcomes is uncertain, as the innovation process could generate new employment opportunities.
To support employment, governments should focus on initiatives that enhance skills and reskilling. By equipping individuals with skills aligned to changing trends in the labor market, governments can help mitigate the potential negative impacts of AI. When it comes to regulating AI-driven companies, striking the right balance between support and discipline is crucial for policy makers.
It’s important to avoid excessive regulation of AI-related innovations, as they could stifle new ideas and experiences. Countries that embrace adaptable and open-minded perspectives, allowing experimentation, are likely to reap the benefits of AI advancement and gain valuable insights in areas where regulation is necessary.
Governments should also prepare for significant labor market changes. Since generic AI is being applied to boost human labor productivity, there’s a possibility of increased unemployment while working hours might decrease. This could contribute to reducing income inequality as some high-paying professional roles witness a decrease in wage premiums. However, specific outcomes will depend on how AI is applied and labor market policies should be aligned with these changes.