Will Artificial intelligence bring layoffs.

Generative artificial intelligence, such as OpenAI's Chat GPT (backed by tech giant Microsoft), relies on algorithms to generate elaborate responses to text queries.

Italy temporarily banned the use of the Chat GPT AI platform on April 3rd due to data privacy vulnerabilities. Prior to Italy, countries like North Korea, Iran, Russia, and China blocked the application within their territories. Germany is also considering a ban on the use of Chat GPT, while the European Commission is accelerating the regulation of artificial intelligence. This field is at the center of intense debates regarding its utility and what we may lose, ranging from privacy and intellectual property to job positions and even entire service categories.

Generative artificial intelligence, such as OpenAI's Chat GPT (supported by Microsoft), relies on algorithms to generate elaborate responses to text queries based on the analysis of large volumes of data, some of which may be held by internet users.

However, artificial intelligence produces complex results, ranging from autonomous vehicles to robots capable of performing human tasks. Various economic sectors are already experiencing the benefits of this remarkable tool, but also the associated losses, particularly in terms of jobs.

"In the communications industry, Chat GPT, for instance, can deliver good results in various aspects such as content creation, rapid research, copywriting, and technical content. It enhances productivity. However, these results need to be evaluated and improved by experienced professionals as they can still make errors. Nevertheless, what could previously be done by a junior employee can now be accomplished by these platforms in a much shorter time and with better quality," stated Cosmina Croitoru, PR and Marketing Communications Director at Lighthouse PR.

Technological unemployment and artificial intelligence

In 1930, when the Great Depression had not yet reached its peak, economist John Maynard Keynes published a groundbreaking essay titled "Economic Possibilities for our Grandchildren." Keynes was concerned about a macroeconomic trend that he called "technological unemployment." It referred to the phenomenon of job scarcity due to advancements in automation technologies. This concern was not new even at that time and had been raised since the early days of the Industrial Revolution. Keynes's essay continued to inspire a considerable body of literature exploring the notion that machines would lead to a significant increase in structural unemployment.

Currently, we find ourselves in the early stages of a new era of innovation and technological unemployment. Keynes predicted that, after a century, the living standards in Western countries would be nearly eight times higher than in 1930. Since then, per capita GDP in the United States has increased 6.5 times and is projected to reach a 7.5-fold increase by 2030. Keynes believed that this substantial growth in wealth would gradually free individuals from the necessity of work, suggesting that "three hours a day" would be sufficient to meet the needs of the 21st century.

"Keynes's envisioned "three hours a day" has currently translated into a four-day workweek, instead of five, in many countries around the world. More recent perspectives on the perils of artificial intelligence, such as those expressed by Nouriel Roubini or Jacques Attali, are treated in a similar manner as Keynes's ideas were a hundred years ago: as something that cannot happen. I believe that it is already happening, but we may not see it for various reasons. In the initial stages, the more repetitive and less complex a person's job is, the easier it becomes to replace it with AI", explained Cosima Croitoru, PR and Marketing Communications Director at Lighthouse PR.

Reducing the workweek has already been implemented in some countries

Although the average number of working hours is still close to eight, there is increasing discussion about reducing the work time. The COVID-19 pandemic has brought this topic to the forefront, particularly with the rise of remote work. Additionally, the pandemic has highlighted the importance of work-life balance and the need for more flexible working arrangements.

Several countries have already implemented shorter workweeks or reduced hours without decreasing salaries. For example, since 2015, Iceland has tested a four-day workweek without reducing pay for some public sector employees. The trial was considered a success, and the reduced workweek is now implemented in many industries. New Zealand has also announced plans to trial a four-day workweek without reducing pay. Belgian employees have obtained the right to work a full week in four days instead of five, without any reduction in salary.

"The discussion about reducing work hours and workdays is an ongoing one, with different perspectives and opinions regarding the benefits and drawbacks of such a change. But let's add to the conversation the work that artificial intelligence is already doing and the prospects for its evolution in this field. This makes it clearer that an increasing number of activities currently supported by humans will be replaced by artificial intelligence", said Cosmina. 

Jobs in the service sector are the first to be affected

Linguistic applications of artificial intelligence are already being used in a variety of job fields, such as customer service, content creation, and language translation. Such applications are capable of providing answers to common questions, thereby freeing up human representatives to focus on more complex or specialized issues. In content creation, they can assist writers in generating ideas, providing research materials, and even creating written content projects.

Business sectors ranging from agriculture and manufacturing to the automotive industry and financial services are increasingly turning to artificial intelligence as a means of automating large segments of their organizations, resulting in significant cost savings by improving efficiency. However, many jobs require a combination of technical skills, creativity, emotional intelligence, and other qualities that are difficult for artificial intelligence to replicate. Fields such as social work, healthcare, education, and the arts are much harder to replace with artificial intelligence in the near future.

Leading economists and global analysts argue that artificial intelligence will have a major impact on the field of liberal professions. At the same time, it has the potential to manipulate human behavior, which is why regulation is necessary at this stage.

“The European Commission already has several regulatory projects in the field of artificial intelligence, including a Directive. I expect that by the end of this year, we will already have more stringent regulations regarding the use of artificial intelligence platforms in the EU. However, as with the GDPR, their implementation will vary from country to country", concluded Cosmina. 

The article first appeared on the Adevărul website, here.