The Impact of Generative AI on Employment

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by Giorgi Kostiuk

2 years ago

Made with AI


A recent study by Google suggests that there is no direct connection between the development of generative AI technology and unemployment. The study, conducted by Andrew McAfee from MIT Sloan School of Management, indicates that the current limitations of the technology prevent it from replacing human workers in tasks that involve planning, reasoning, or memory.

The study refers to a previous experiment in 2023, where humans outperformed AI systems in tasks that required complex cognitive skills. Although generative AI is rapidly improving, it still has a long way to go before it can handle multi-step work efficiently.

Comparisons are made to historical technological advancements, with generative AI being labeled as a "general-purpose technology" akin to the steam engine during the Industrial Revolution. The study predicts that the impact of AI will be more immediate due to existing infrastructure and accessibility.

While generative AI may not lead to mass unemployment, it is likely to affect higher-skilled workers more than those with lower levels of education. The study warns that competition in various industries may be reshaped by AI, favoring a small group of top performers. This could lead to layoffs for some while others may need to acquire new skills to adapt to the changing job market.

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