Harward Business Review recently analyzed 1,388,711 job ads published on a central freelance platform between July 2021 and July 2023, revealing the profound impact of generative AI tools on job demand.
Using machine learning, they categorised job postings into three groups: manual jobs (such as data management and video services), automation-intensive jobs (such as writing, software development and engineering), and imaging jobs (such as graphic design). Their results showed that introducing AI tools has significantly reduced job postings, particularly in automation-intensive sectors. The steepest decline was in writing jobs (30.37%), followed by software/application development (20.62%) and engineering (10.42%).
Following the introduction of ChatGPT, the analysis of HBR revealed significant shifts in the job market, particularly in roles traditionally prone to automation. They found a 2.18% increase in job complexity, marked by a rise in the required skills and a 5.71% increase in employer willingness to pay for these roles. Job postings specifying ‘ChatGPT’ as a required skill surged, with 903 posts emerging post-launch, predominantly in the software and web development sectors. It shows workers’ growing demand for AI integration skills and the critical need for reskilling in response to evolving job demands driven by generative AI advancements.
I believe this trend offers businesses opportunities and challenges in workforce management. Although some job replacements are inevitable, companies must actively shape the integration of AI into their operations. This presents a chance for growth and adaptation, with critical implications for managers’ ability to navigate the evolving landscape effectively. Only continuous learning and exploring new avenues can protect workers against AI. The need for reskilling is paramount, and investing in one’s skills is the best defence against AI and the changing job market.
