AI will force billions of workers worldwide to master new skills as tech revolution heats up: study
AI is expected to require roughly 1.4 billion employees to reskill
‘Barron’s Roundtable’ panelists discuss the evolution of AI and how investors can look for opportunities with the emerging technology.
The proliferation of artificial intelligence platforms such as ChatGPT will likely mean 40% of the global workforce will need to reskill over the next three years as companies integrate the technology, a recent study found.
The IBM Institute for Business Value (IBV) published a study this month detailing how the growth of AI has created a "pivotal point in the world of work and there’s a massive opportunity in front of HR leaders," but the tech has also left questions about how it will affect workforces.
A report from Goldman Sachs in March found that generative AI could replace and affect 300 million jobs around the world. Another study from outplacement and executive coaching firm Challenger, Gray & Christmas found that AI chatbot ChatGPt could replace at least 4.8 million American jobs.
The figures have caused some anxiety, including in fields most likely affected by the technology, such as customer service representatives, technical writers and data entry clerks.
This picture taken on Jan. 23, 2023, in Toulouse, southwestern France, shows screens displaying the logos of OpenAI and ChatGPT. (Lionel Bonaventure/AFP via Getty Images)
The IBM study surveyed 3,000 C-level executives from 28 countries to help shed light on persistent workforce questions, and found executives estimated 40% of their workforce will need to reskill in order to keep up with companies implementing AI platforms into day-to-day responsibilities.
The executives’ estimations translate to roughly 1.4 billion of the 3.4 billion people in the world’s workforce who need to reskill, the study found using World Bank statistics.
"AI won't replace people—but people who use AI will replace people who don't."
WHAT IS ARTIFICIAL INTELLIGENCE (AI)?
"AI’s impact will vary across employee groups. Workers at all levels could feel the effects of generative AI, but entry-level employees are expected to see the biggest shift," IBM said of the study on its blog.
Entry-level employees are already feeling the skill changes put forth by AI, according to 77% of the executives surveyed. On the flip side, only 22% of executives said those in executive or senior management roles would feel a change due to AI.
"AI’s impact will vary across employee groups," IBM said of the study on its blog. ( / iStock)
The study additionally found that AI would likely not wipe out jobs and could instead open "more possibilities for employees by enhancing their capabilities." All in, a whopping 87% of executives surveyed said AI will simply augment jobs, not actually replace them.
Employees who successfully reskill and adapt to the new technology will not only likely hold onto their jobs, but actually become better and more productive.
CHATGPT AI LISTS JOBS IT CAN DO BETTER THAN HUMANS AS MILLIONS COULD BE PUT OUT OF WORK
"Tech adopters that succeed at reskilling to accommodate technology driven job changes report a revenue growth rate premium of 15% on average compared to other tech adopters," the study reported.
Those who outright emphasize AI will see an even greater benefit, at a "36% higher rate of revenue growth than their peers."
A laptop screen is seen with the OpenAI ChatGPT website active in this photo illustration on Aug. 2, 2023, in Warsaw, Poland. (Jaap Arriens/NurPhoto via / Getty Images)
"AI won't replace people – but people who use AI will replace people who don't," the IBM report stated.
SMALL BUSINESSES USING AI ARE LOVING IT
Even small businesses are integrating AI into their workflow and finding it boosts productivity and saves money. A separate study published this month by Constant Contact found 91% of small business owners using AI say it has made their companies more successful, and 28% of those respondents said they expect it to save them at least $5,000 over the next year.
The recent findings come as world leaders and economists predict AI will have an equal or greater impact on jobs and the economy as the Industrial Revolution.
"This is a total revolution that is coming," Oliver Dowden, deputy prime minister of the United Kingdom, said earlier this month. "It’s going to totally transform almost all elements of life over the coming years, and indeed, even months, in some cases."
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"It is much faster than other revolutions that we’ve seen and much more extensive, whether that’s the invention of the internal combustion engine or the Industrial Revolution," he added.
Fox News Digital's Breck Dumas contributed to this report.