Originally published at: AI is expected to create 12 million new jobs by 2025 – InvestEngine Insights
The discussion around artificial intelligence (AI) has often been one of caution and concern, particularly regarding its potential to displace human workers across various industries. However, recent studies and expert opinions present a more optimistic outlook, suggesting that AI is shaping up to be a significant job creator rather than destructor. By 2025, the World Economic Forum anticipates that AI will create around 12 million new jobs1, signaling a shift in the workforce dynamics of what is now called the ‘Fourth Industrial Revolution’.
AI: A job creator, not destructor
Acknowledging that automation and AI technologies will alter existing jobs, and in some cases, reduce the need for human intervention, is only one aspect of the story. The other, more compelling part, is creation. AI is paving the way for new fields of work and leading to the expansion of others. According to the World Economic Forum, AI is not only about task automation but also about the creation of new employment opportunities in sectors that were previously unimaginable.
For example, the rise of generative AI is prompting companies to adopt long-term strategies, recognizing its potential to complement human work, not just replace it. This shift in perspective highlights how AI can create new job opportunities by leveraging uniquely human skills and creativity.
Fourth industrial revolution – the skills revolution
In the midst of the Fourth Industrial Revolution we are witnessing a shift, known as the ‘Skills Revolution’. This period marks a change in the skill set demanded in the workforce. Digital literacy, AI fluency, and the ability to work alongside intelligent systems are becoming increasingly important. The demand for tech-savvy professionals in fields such as AI ethics, data analysis, machine learning engineering and AI system maintenance is growing.
Moreover, according to McKinsey, generative AI has the potential to enhance US labor productivity by 0.5 to 0.9 percentage points annually until 2030. This productivity uplift underscores the significance of reskilling and upskilling efforts aimed at preparing workers for the jobs of tomorrow2.
Embracing the revolution
Embracing the AI revolution entails recognizing and adapting to the changes technology brings to work dynamics. It involves acknowledging that AI serves both as a disruptor and an innovator. For individuals, keeping up to date with emerging AI trends as well as investing in education about its development are steps towards securing future employability.
Investment opportunities
The transformative effects of AI on the job market also present significant investment opportunities for investors looking to gain exposure to an emerging technology. From startups developing innovative AI applications to companies offering training programs, the landscape is ripe for investors looking to capitalize on the projected growth of AI. Furthermore, governments and educational institutions are allocating more resources and increasing investment in AI research and development, highlighting a broad consensus on AI’s potential to drive economic growth and job creation.
In conclusion, while AI continues to reshape the future of work, its role as a job creator offers a promising outlook for the global economy as a whole. By embracing this revolution and preparing for the skills of tomorrow, individuals and organizations can unlock new opportunities and thrive in the era of AI.
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1 Source: The Future of Jobs Report 2020, World Economic Forum, October 2020
2 Source: Will generative AI be good for US workers? McKinsey Global Institute, August 2023
Glossary
Artificial intelligence (AI): Refers to computer systems capable of performing complex tasks that historically only a human could do, such as reasoning, making decisions, or solving problems.
Fourth Industrial Revolution: Refers to the rapid technological transformation that society is undergoing in the 21st century.
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