AI and Automation: AI Job Creation linked to Rising Inequality

In the landscape of modern employment, the impact of artificial intelligence (AI), robotics, and automated technology presents a stark picture. On one hand, there is evidence suggesting these innovations contribute to job creation and improvement in job quality, while on the other, concerns remain about job displacement, skill gaps, and the exacerbation of inequality.

Research conducted by the Institute for the Future of Work (IFOW), Imperial College London, and Warwick Business School—surveying over 1,000 UK firms—revealed that 78% of companies implementing AI and automation witnessed the creation of new roles. This finding indicates a trend that technology can indeed contribute to job creation. Additionally, 69% of businesses reported improvements in job quality, suggesting that automation doesn't merely replace jobs but can enhance them.

However, these positive outcomes are not without their caveats. The research sample, though substantial, is a fraction of the total number of businesses in the UK, which raises questions about the representative weakness of these findings across the entire economy. Moreover, while new jobs are being created, there is a lack of clarity - perhaps even direct obfuscation - regarding the nature and number of jobs being lost to AI automation. This brings to light a critical consideration: the net effect of AI and automation on employment may still be negative if displaced jobs outnumber those generated.

Furthermore, while the need for new skills can be viewed as an opportunity for workforce development, it also poses a challenge. If employees cannot acquire new skills swiftly, they risk unemployment or underemployment. Employers see this additional cost of education as a burden, as well as the greater independence of their staff as a potential liability (except in rare cases.)

Rising Inequality

The research acknowledges that the positive impacts of automation are not uniformly distributed, which may lead to worsening regional disparities. High-skilled regions could potentially reap the benefits of automation, leaving behind areas with less investment in education and technology infrastructure.

This is also possible at a more granular level, consider the recent uptick in 'Gated' communities, including tower blocks, often surrounded by 'service' neighbourhoods where much poorer citizens live in much poorer housing.

The article from IFOW also highlights that the quality of new jobs is subjective and difficult to measure. The creation of high-quality jobs doesn't guarantee that all workers will see improved conditions, and the long-term economic impact of automation remains a subject of debate. Rapid technological adoption may necessitate societal adjustments at an unprecedented pace, putting strain on education and social support systems.

The report encourages human resource investment and policies that augment workers' capabilities through automation. However, such investments are not always a priority for companies, especially when short-term gains are at stake. Policymakers are urged to take action to mitigate the negative outcomes of automation, but there's no certainty that these measures will be sufficient or effectively implemented.

In conclusion, while AI and automation present opportunities for job creation and improvement of work quality, they also pose significant challenges. The overall impact of these technologies on the workforce is nuanced and requires a balanced discussion that considers both the potential benefits and the risks involved. It is crucial to continue monitoring the situation, understanding that while technology advances rapidly, the human and societal aspects of employment must not be left behind.

Please find below the IFOW Report pdf: