AI will create long-term ‘job disruptions,’ CEO of Big Four firm says
KPMG survey finds 58% of consumers say generative AI has significant impact on their professional lives
Optimistic that economy will absorb tech disruption shock over time: Paul Knopp
KPMG Chairman and CEO Paul Knopp examines the impact of artificial intelligence on jobs and discusses potential mergers and acquisitions this year.
With U.S. consumers and executives both expressing worries about the impact of artificial intelligence (A.I.) in the workplace, the CEO of one of America’s largest consulting firms warned about "long-term" disruption.
"I think in the long term, there will be job disruption, no doubt about it, KPMG CEO Paul Knopp told FOX Business’ Maria Bartiromo, Tuesday, from the World Economic Forum in Davos, Switzerland.
"Seventy-six percent of millennials and Gen Z said their jobs are already significantly impacted by generative AI, and there has not been significant job loss to date," he continued. "So what I think that means is that we are putting it into the mainstream now, and the workforce is still very flexible today."
I.M.F. WARNS A.I. WILL IMPACT 60% OF U.S. JOBS, INCREASE INEQUALITY WORLDWIDE
Additional KPMG findings show 65% of business executives believe generative AI will have a high impact on their organization in the next three to five years.
An IMF report found that 60% of global jobs may be impacted by artificial intelligence. (iStock)
In general, generative A.I. holds the ability to generate various versions of requested text, images, audio and other media forms. IBM recognizes generative A.I. as a "deep-learning model," built with the capability to learn large coding languages.
Arguing that the labor market is currently facing other headwinds, Knopp remained optimistic that the economy can absorb "what may be a bit of a shock" to technological advancements over time.
"You think about all the different emerging technologies we've put in place over the last 25 years, and yet there's been net job growth and not net job loss. And I think that with every emerging technology, we have seen that over time. And maybe the nature of some of what people do changes," the CEO noted.
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"That same study said that these individuals [who] took the survey, that they weren't that worried about job disruption, they thought that their mental health would actually improve," he added, "meaning that more mundane tasks might be automated, allowing them to do more valuable things in their work."
Also chiming in on the "Mornings with Maria" conversation in Davos, International Monetary Fund managing director Kristalina Georgieva raised labor concerns that jobs may "disappear" with the rise of A.I.
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A recent report from her firm estimated that 60% of global jobs may soon be impacted by A.I.
"The report is a wake-up call. Because it says, over the next years, it’s not going to happen tomorrow, but… there will be a tsunami affecting us. And, we still have a chance to not be hit by it, but rather to ride on it for opportunities for higher growth."