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The Impact of Artificial Intelligence on Job Automation

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DOI: 10.13140/RG.2.2.13246.87366

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RESEARCH METHODS AND PROFESSIONAL ISSUES (COMP7004)

TITLE:

THE IMPACT OF ARTIFICIAL INTELLIGENCE ON JOB AUTOMATION

Olalude Stephen Olawale (s5528655)

Unit Leader: Philip Davies

15th December, 2023

Abstract
This journal focuses on the relationship between artificial intelligence(AI) and job
automation. The study analyses the technological landscape, highlighting the advancements
in AI that infuse job automation, and identifies key industries influenced by these changes.
This journal addresses social and ethical considerations, emphasizing the societal
repercussions of job displacement and the ethical responsibilities of AI developers and
policymakers. Real-world case studies illustrate the practical implications of AI-driven job
automation in specific industries or regions.
Artificial Intelligence has become a prominent topic in both academic and literature and the
media due to its potential impact on employment. The risks involved with AI and its
implications for the future of work have been widely discussed, with many predicting a
significant shift in the nature of employment.
Advances in artificial intelligence and automation have underscored the need to know the
ethical implications of these technological developments. As AI continues to evolve, it
pertains to not only the automation of cognitive tasks but also to the potential changes in
organizational structures and management systems.

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Table of Contents
Abstract ................................................................................................................................................... 2
Introduction ............................................................................................................................................. 4
Literature Review.................................................................................................................................... 4
Impact of Artificial Intelligence on Employment ................................................................................... 5
Understanding the Concept of Artificial Intelligence ............................................................................. 5
AI Technologies Driving Job Automation .............................................................................................. 6
The Positive Impacts of AI on Job Automation ...................................................................................... 6
The Negative Impacts of AI on Job Automation .................................................................................... 7
Case Studies: AI and Job Automation in Various Industries .................................................................. 7
The Future of Artificial Intelligence and Job Automation ...................................................................... 7
Strategies to Mitigate Job Loss Due to AI Automation .......................................................................... 8
Conclusion .............................................................................................................................................. 8
References ............................................................................................................................................... 9

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Introduction
As computers continue to advance in processing power and capabilities, artificial intelligence
has rapidly become a part of our daily lives since 2015[1]. It has influenced many sectors
including, business, healthcare, and education. With the growth of artificial intelligence, there
has been an increasing concern about job automation and the impact it has on employment.
With the recent rapid progress in Artificial Intelligence and automation, there is a growing
apprehension regarding the impact of AI on job automation[2].
This technology has the potential to greatly impact various aspects of society, with one of the
key areas being job automation. The combination of AI and automation is fascinating and
covers many areas, including deliberate action, planning, understanding open environments,
and interacting with other robots[3]. AI technologies, particularly automation, have already
started to reshape various industries and job sectors.
The possible impact of AI on unemployment has become a globally hot topic [4]. According
to one school of thought, AI is just another form of automation, and its effect on jobs should
be analyzed from the framework of the history and economics of automation [5].
Governments and global development organizations are scrambling to respond to the
expected future of work, recognizing the potential risks and challenges that AI-driven
automation may bring.
There is a common belief in developing countries that advanced automation technologies,
including AI, will negatively affect employment rates and worsen the problem of
overproduction and underemployment[6]. However, even in developed countries, there are
great concerns about AI's impact on employment.
The impact of artificial intelligence on job automation is a widely debated topic. The
feasibility of AI technology, labor market conditions, the cost of implementation, social
acceptance, and economic benefits will determine the extent to which the workforce is
replaced by automation.
However, the impact of AI on employment is not just negative, it also has the potential to
increase worker productivity, lower automation costs, and create new sectors of employment.

Literature Review
Artificial Intelligence has become a significant driver of technological advancements, leading
to transformations across various industries. There are a lot of different views on the impact
AI has on job automation. The unprecedented growth of AI and robot-based systems has had
a critical impact on the economic, social, and labor domains[7]. Some experts argue that AI
will likely outperform humans in many activities and tasks, leading to job loss for humans[8].
In their research, DeCanio emphasized the impact AI has on the labor market and the
concerns surrounding the replacement of human workers by AI systems such as
robotics(ELEGUNDE and OSAGIE 2020). Freya and Osborne estimated that approximately
47% of jobs in the high-risk category would be replaced by AI in the next 20 years,
specifically those involving low-skilled labor and repetitive tasks[10]. It is important to note
that the implementation of AI can lead to increased production efficiency and stimulate
demand for workers in the IT sphere, thus contributing to employment growth in innovative
sectors[11].

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The literature suggests that while AI may lead to certain job displacements, it is unlikely to
have a significant aggregate effect on the labor market as a whole[12]. The impact of
artificial intelligence on job automation is a complex and multifaceted issue that sparks
extensive debate and concern[13]. The economic effects of AI go beyond its impact on the
labor market, and policymakers play a crucial role in determining the diffusion patterns and
overall impact of this technological revolution[14].
Moreso, it is crucial to note that the impact AI has on employment is not solely quantitative.
While there may be concerns about job displacement and economic inequality, the literature
suggests that the overall impact on employment is relatively small. Acemoglu et al’s research
on the US labor market showed that while AI replaces human workers for different types of
tasks, there is currently no aggregate effect on the labor market[15]. Furthermore, the
literature suggests that while AI and automation technologies can replace certain jobs, they
also have the potential to assist human skills instead of substituting them.

Impact of Artificial Intelligence on Employment

There are varying opinions and studies on the potential impact AI has on employment. Some
believe that AI and automation can cause widespread unemployment, while others argue that
it will create new job opportunities and enhance productivity. The impact of AI on
employment is believed to be significant, with predictions ranging from a large percentage of
jobs being at risk of automation to the potential for qualitative rather than quantitative
changes in the workforce[7].
The impact of Artificial Intelligence on employment is a complex and debated topic. There
are various viewpoints on the potential consequences of AI on job automation. The impact of
AI on employment is not homogeneous across all sectors and occupations. The impact of AI
on job automation may exacerbate existing inequalities, as workers with limited access to
technology or resources may struggle to find new employment opportunities in highly
automated industries[16]
Different studies and research suggest that the impact of AI on employment will vary
depending on the specific industry, region, and timeframe. Some researchers are pessimistic,
suggesting that AI technology will reduce employment and lead to the polarization of the
workforce. Others have a more uncertain view, stating that the impact of AI on the labor
market is not significant or not easily predictable.
However, some researchers argue that the impact of AI on employment will be double-sided,
with different outcomes depending on factors such as occupation, region, and timing. There
are different and sometimes conflicting views on the impact of AI on employment.
Additionally, the impact of AI on employment is not the same across all sectors.

Understanding the Concept of Artificial Intelligence

Artificial Intelligence, often referred to as AI, is a branch of computer science that focuses on
the development of intelligent machines that can perform tasks that normally require human
intelligence. Some of these tasks are speech recognition, decision-making, problem-solving,
and understanding natural language. AI technology is advancing rapidly, with breakthroughs
in machine learning and deep learning algorithms allowing computers to analyze data, learn
patterns, and make predictions or decisions based on that analysis.

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Artificial Intelligence has the potential to revolutionize various industries and sectors,
including transportation, retail, finance, manufacturing, healthcare, and more[17]. AI has
already started to impact and automate certain job tasks, leading to concerns about the future
of employment.
AI can perform cognitive functions that were once exclusive to humans, such as perceiving,
reasoning, learning, problem-solving, decision-making, and even demonstrating
creativity[18]. As we enter the Artificial Intelligence technological age, the ambition is to
offer the augmentation and potential replacement of tedious human tasks and activities within
a wide range of industrial, intellectual, and social applications[17].

AI Technologies Driving Job Automation

The increasing adoption of AI technologies is driving job automation in various industries.
For example, in the transportation industry, self-driving vehicles powered by AI algorithms
have the potential to replace truck drivers, delivery drivers, and taxi drivers. In the retail
sector, AI-powered chatbots and virtual assistants can automate customer service tasks,
reducing the need for human agents.
In the finance industry, AI algorithms can automate tasks such as data analysis and risk
assessment, which subsequently reduce the need for financial analysts. In the healthcare
industry, AI can automate tasks such as medical image analysis, diagnosis assistance, and
drug discovery, which will impact the roles of radiologists and pharmacists. In the
manufacturing industry, AI-powered robots and automation can perform repetitive tasks on
assembly lines, reducing the need for manual labor.
This increase in automation poses a challenge for managing the potential changes to
employment patterns that are likely to follow[19]. AI technologies can perform complex
problem-solving tasks, challenging human capabilities in certain scenarios. For example, jobs
that require technical skills like programming and data analysis, which were previously
considered safe from automation, may now be at risk.
Furthermore, even professional tasks that were once considered exclusive to humans, such as
auditing, legal work, and medical diagnosis, are now being carried out by AI systems with
high accuracy and efficiency. This raises concerns about the future employment prospects for
professionals in various industries, as AI has the potential to replace or greatly reduce the
need for human labor in these areas[20].

The Positive Impacts of AI on Job Automation

Artificial Intelligence has the potential to bring about a range of positive impacts on job
automation. These include reducing the possibility of human error, increasing efficiency, and
performing tasks that are dangerous or difficult for humans. AI systems can carry out tasks
with precision and accuracy, minimizing the risk of errors that can be costly or even life-
threatening. Also, AI technologies can handle tasks that are too difficult or dangerous for
humans to do.
The emergence of AI systems in various sectors has the potential to reshape the workforce
and create new job opportunities that were previously unimaginable. For example, as AI
automates certain tasks, it will also create a demand for workers skilled in managing and
maintaining AI systems. AI assists in decision-making processes by analyzing large amounts

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of data and thereafter provides tangible insights. This can help managers and professionals
make more informed decisions, leading to improved productivity and performance.

The Negative Impacts of AI on Job Automation

While there are undoubtedly positive impacts of AI on job automation, there are also
potential negative consequences that must be considered. These negative impacts include the
potential for increased unemployment as jobs that can be automated are taken over by AI
systems[21]. Additionally, the capabilities of AI systems could lead to the improvement of
automated weapons, posing a threat to global security.
Furthermore, there are concerns about the widening inequities in society, as AI automation
may disproportionately affect certain groups of workers who are more vulnerable to job
losses, such as those in low-skilled or repetitive jobs[22]. It is crucial to carefully consider the
implications and take proactive measures to mitigate potential negative impacts.

Case Studies: AI and Job Automation in Various Industries

Many case studies demonstrate the impact of AI on job automation in various industries. Here
are some of these case studies:
Case Study 1: Manufacturing Industry
The manufacturing industry has seen changes in job automation due to the implementation of
AI technologies. Automation and the use of robots have led to the displacement of many low-
skilled workers in tasks that can be easily automated, such as assembly line work.
Case Study 2: Retail Industry
The retail industry has also experienced the impact of AI and job automation. The
introduction of self-checkout systems and automated inventory management software has
reduced the need for human employees in certain roles, such as cashiers and stock clerks.
Case Study 3: Transportation Industry
The transportation industry is transforming with the introduction of AI technologies,
particularly in autonomous vehicles. These technologies have the potential to replace truck
drivers, taxi drivers, and other transportation-related jobs, leading to significant job losses in
the industry.
These are few among many other industries where the impact of AI on job automation is
demonstrated.

The Future of Artificial Intelligence and Job Automation

The future of Artificial Intelligence and Job Automation is both exciting and uncertain. As AI
technologies continue to advance, more jobs will likely be automated, especially those that
involve tasks or require technical skills[23].
The impact of AI on job automation will depend on various factors such as the feasibility of
the technology, labor market conditions, cost-effectiveness, social acceptance, and potential
economic benefits. As advancements in AI technology continue to revolutionize various
industries, individuals, and organizations need to stay informed and adapt to the changing
landscape of job automation.

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Strategies to Mitigate Job Loss Due to AI Automation
It is important to develop strategies to mitigate job loss due to AI automation. Some of the
strategies that can be implemented to mitigate job loss include:
1. Upskilling and reskilling: Individuals can acquire new skills that complement AI
technology allowing them to work alongside AI systems rather than being replaced
by them.
2. Investing in education and training programs: Governments and organizations can
invest in educational programs that focus on developing skills that cannot easily be
automated.
3. Promoting entrepreneurship: Individuals should be encouraged to start their
businesses or pursue freelancing opportunities.
4. Implementing policies and regulations: Governments implement policies and
regulations that ensure fair treatment of workers affected by automation, such as
providing assistance and retraining programs for displaced workers.

Conclusion
The impact Artificial Intelligence has on job automation is two-faced. AI technology has the
potential to both eliminate jobs and create new ones. While there may be concerns about job
loss and inequality, there are also opportunities for innovation and growth.
It is therefore necessary that policymakers, organizations, and individuals proactively address
the potential impact of AI on job automation by implementing strategies to support workers,
developing new skills, and focusing on industries that are less likely to be automated. AI
technology has the power to transform the nature of work and a substantial portion of jobs
could indeed be automated, resulting in concerns about job displacement and the polarization
of the workforce[24].
There are positive net economic impacts of AI, as it can increase worker productivity, lower
automation costs, and generate new sectors. Additionally, instead of fearing job loss,
policymakers should focus on upskilling and reskilling the workforce to complement AI
technology. By doing this, we can harness the potential of AI to drive economic growth and
create new job opportunities.
The impact AI has on automation is still uncertain and highly debated. It is crucial to
approach the issue with caution and accurately assess the potential impact on different
industries and occupations. It would be too early to make deterministic predictions about
widespread job displacement due to AI and job automation. Therefore, it is also necessary to
conduct further research and analysis to fully understand the specific effects of AI on
different industries and occupations.

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