The invention of AI sparked a concern among workers. Do they lose their jobs to AI engined robots? However, this is not a new concern. This concern actually traces back to the industrial revolution in the 18th century. It is impossible to forecast the future without errors and extrapolation may not work well but the history of the last 200 years shows us that the workers should not be worried. If they enhance their knowledge and skills they will end up in better positions with higher wages.Â
It is also true that many jobs are exposed to AI. In fact according to Goldman Sachs research, 18 percent of the global labor can be diverted to AI engines. And jobs in developed nations are more exposed to AI compared to jobs in the developing countries.
However, in the past technological advancement that initially displaced the workers, boosted the employment rates in the longer horizon. It created more and more new jobs. Jobs that never had existed before. A study by economist David Autor and coauthors confirms this. You can see the paper result in this graph. They find that 60 percent of workers today are employed in jobs that did not exist in 1940, this implies that over 85 percent of employment growth over the last 80 years is explained by the technology-driven creation of new positions. This literally means the workers, especially those who keep themselves up to date and are eager to learn new skills should not worry about AI.
Source: Goldman Sachs Economic ResearchÂ
