There’s no need to fret about AI replacing jobs. Instead, it will redefine the concept of employment, adapting to the changing landscape.
This is an exclusive article series conducted by the Editor Team of CIO News with Akhil Damodaran, Dean Undergraduate Business School at IILM University and CEO of Elteridium.
The rise of AI has been nothing short of remarkable, from the early days of chatbots to the more recent ChatGPT. As we head into uncharted territory with AI becoming an integral part of our lives, it’s reminiscent of Google’s emergence in the late 2000s. Back then, an article in Wired, “Google vs. Evil,” captivated our imagination. This era marked the transition from Web 2.0 to the Web3 fascination, followed by the disruptive wave of emerging technologies like blockchain and the metaverse. AI, in the form of ChatGPT, was the latest entrant, delivering responses that seemed eerily human-like and remarkably insightful.
The trajectory of ChatGPT’s evolution is undeniable. With the advent of Bard and Microsoft Co-Pilot, the intensity of AI’s impact is set to surge even further. Yet, the looming question remains: Will AI ultimately replace humans in a world where its power is unmatched? Will we find ourselves in a dystopian scenario, akin to the Matrix or Terminator, where machines reign supreme?
To address this question, we must shift our focus from a technical standpoint to the realms of market dynamics and economics. The core of this discussion revolves around how businesses operate, with money serving as the medium of exchange for the time and experience offered by services or products. Money is a token of value traded for the experiences we gain. Companies create products and services to enhance the human experience, thus earning financial value.
Now, let’s play a business game. As AI continues to advance and its intelligence surpasses that of humans, organizations and producers will logically implement more AI into their operations. This will undoubtedly enhance efficiency and productivity, reducing costs along the way. However, an increase in AI-driven automation also translates into fewer jobs for humans. Paradoxically, the reduction in human jobs leads to rising unemployment, which in turn shrinks the available income in the job market. A decrease in income results in reduced consumption, thereby slowing down the nation’s economic growth. AI can generate more products, but if there’s no one to purchase them due to declining income, a crisis looms.
In essence, AI can enhance productivity, processes, and even product quality, but it can never truly become a consumer. Markets thrive on consumption and experience, both of which require a human touch. In summary, humans fuel the market because they are consumers. AI can bring innovation and transformation, but it relies on a market to be successful.
In conclusion, there’s no need to fret about AI replacing jobs. Instead, it will redefine the concept of employment, adapting to the changing landscape. AI companies are not interested in creating unemployment, as it would stifle market growth. Businesses require markets, and markets need consumers. So, rest assured, humans will remain at the heart of economic growth and prosperity.
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