Generative AI Revolution: Reshaping Work

Image credits: Mohamed Nohassi / Unsplash

Generative AI, the tech that can produce human-like text, images, and audio, is set to revolutionise a myriad of sectors. According to Morgan Stanley, over 40% of occupations could feel the effects of generative AI within the next three years. That's $4.1 trillion of labour costs potentially impacted!

While there's a risk of humans being replaced in certain roles, generative AI also promises to augment jobs, create new roles, and increase demand for certain professions. It's a bit like a double-edged sword, but history shows us that tech innovations often lead to net positive outcomes. Think enhanced productivity, lower prices, and the emergence of new products and services.

The adoption of generative AI isn't without its challenges, though. Legal, regulatory, and implementation hurdles mean that initial deployments of generative AI projects are expected around 2024 or 2025. But, with policy responses like President Joe Biden's executive order, we're focusing on managing AI's promises and risks.

Generative AI's potential to enhance labour productivity could lead to faster GDP growth and lower inflation in the short term. But, we'll need to keep an eye on the long-term effects, like higher interest rates and the need for reskilling displaced workers.

Speaking of reskilling, as generative AI reshapes the job market, we'll likely see an increased demand for retraining. This shift may require public-private partnerships to facilitate the transition, focusing on skills that are difficult to automate.

And let's not forget the multi-earners! Generative AI could offer diverse opportunities for income generation outside traditional employment.

So, as we navigate this transformative period, the focus will increasingly shift towards leveraging AI's benefits while mitigating its risks. The future of work is undoubtedly changing, and generative AI will play a central role in shaping that future.