AI creates new winners and losers within the labor market

January 29, 2025

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AI creates new winners and losers within the labor market

Demand for skilled abilities has modified considerably because the launch of ChatGPT in late 2022, in response to a brand new examine. However the image is advanced. Whereas there have been fewer jobs in areas reminiscent of copywriting and translation, the demand for different abilities elevated.

Will synthetic intelligence (AI) revolutionize the labor market and make hundreds of thousands of jobs redundant? Or is there a bent to magnify the affect of ChatGPT and different types of generative AI?

A brand new worldwide examine printed within the Journal for Financial Habits and Group concludes that the reality might be someplace in between. Synthetic intelligence is quickly changing jobs in some areas however creates new jobs in others.

The examine is predicated on statistical analyses of greater than 3 million freelance jobs with completely different talent profiles posted on one of many main worldwide freelance platforms earlier than and after the launch of ChatGPT in November 2022.

"We will see that the demand for abilities reminiscent of translation or copywriting and easy programming decreased considerably after the introduction of ChatGPT. However the examine additionally exhibits that the demand for different abilities has elevated," says Ole Teutloff, who’s affiliated with the Copenhagen Centre for Social Knowledge Science (SODAS) at UCPH.

"The principle takeaway is subsequently that we’re seeing vital adjustments within the composition of the labor market. However we’re to date not speaking about new AI applied sciences wiping out jobs throughout the board, making human labor redundant."

Job posts down by virtually 1 / 4

General, the evaluation exhibits that the variety of freelance jobs supplied in areas the place ChatGPT can largely take over has decreased by round 24% in comparison with jobs the place AI is used as a complementary device or has no affect in any respect.

The roles most negatively affected had been writing about actual property and "about us" pages on web sites. Right here the variety of posted jobs fell by greater than 50%. Conversely, the variety of freelance jobs elevated in areas reminiscent of machine studying, chatbot growth and extra artistic types of textual content and video manufacturing.

The decline was notably robust for short-term jobs of 1–3 weeks and for jobs aimed toward freelancers with restricted expertise. In keeping with the researchers behind the examine, this is smart, as extra advanced duties proceed to require human involvement.

Johanna Einsiedler, co-author of the paper and Ph.D. pupil at SODAS, cautions in opposition to inserting an excessive amount of emphasis on particular numbers within the examine, as the sphere of AI is creating quickly. Nonetheless, the general pattern is evident:

"We’re probably dealing with huge adjustments. Once we see the variety of jobs out there in essentially the most AI-sensitive sectors falling by 1 / 4 in simply two years, it's clearly vital. And we most likely haven't seen the total affect but, with the freelance sector being affected sooner than the remainder of the labor market," she says.

New calls for for flexibility

In keeping with the researchers behind the examine, this poses new challenges for each workers and employers. Integrating AI into work processes will create winners and losers, relying on how AI applied sciences are carried out and what abilities people have. Some jobs will disappear, and others will emerge.

This has occurred earlier than when new applied sciences have taken off. However on this case, policymakers must be paying particular consideration to how briskly issues are transferring.

"It’s a specific problem once we speak about schooling and coaching, which takes time to vary. Fortuitously, Denmark has an schooling system that focuses on common abilities. In my view, this may change into much more vital in a quickly altering world. A number of the most vital abilities would be the curiosity to be taught and the flexibility to adapt," Teutloff says.

Examples of affected talent clusters

Negatively affected (much less jobs):

• Writing "About Us" pages
• Actual property content material writing
• Internet design with Java script
• Proofreading
• Translation (W. European languages)
• Enterprise evaluation
• Knowledge science and statistics

Positively affected (extra jobs):

• Chatbots
• Inventive writing, explainer movies
• Machine studying
• Journey planning

Extra info: Ole Teutloff et al, Winners and losers of generative AI: Early Proof of Shifts in Freelancer Demand, Journal of Financial Habits & Group (2025). DOI: 10.1016/j.jebo.2024.106845

Journal info: Journal of Economic Behaviour and Organisation Offered by College of Copenhagen Quotation: AI creates new winners and losers within the labor market (2025, January 29) retrieved 29 January 2025 from https://techxplore.com/information/2025-01-ai-winners-losers-labor.html This doc is topic to copyright. Aside from any truthful dealing for the aim of personal examine or analysis, no half could also be reproduced with out the written permission. The content material is offered for info functions solely.

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