Generative AI Set to Disrupt U.S. Workforce, Triggering 12M Job Switches, United States

Date:

Generative AI is set to disrupt the U.S. workforce, triggering approximately 12 million job switches, according to a study conducted by the McKinsey Global Institute. The research suggests that by 2030, generative AI could automate around 30% of the hours worked in the U.S. economy, necessitating significant changes in the job market.

The rise of generative AI is expected to result in approximately 11.8 million workers transitioning to new career paths, with around 9 million individuals needing to seek employment in entirely different industries. This shift is driven by various factors, including job displacement and the allure of higher-paying industries or fields with high demand for specific skills.

The healthcare sector, which already has an estimated 1.9 million job openings as of April, is projected to add roughly 5.5 million new jobs through 2030. Additionally, there will be a 23% surge in demand for STEM (Science, Technology, Engineering, and Mathematics) jobs due to the widespread integration of AI across various industries beyond just technology.

However, the proficiency of generative AI in administrative tasks is expected to lead to a decline in demand for positions such as office support and customer service by 18% and 13% respectively by 2030. The food service sector is anticipated to experience a smaller decrease of 2% during the same timeframe. Unfortunately, these changes may disproportionately affect women and pose an elevated risk for Black and Hispanic employees.

It is important to note that automation adoption does not necessarily mean the elimination of jobs. Many jobs will still remain, but the nature of work and how it is carried out will change significantly. McKinsey estimates that individuals who continue in their current roles will see approximately 30% of their work hours automated by generative AI.

See also  Xiaomi Redmi K80 Pro to Debut with Snapdragon 8 Gen 4 - Rumors Suggest Major Upgrade Ahead

Previously, current technologies could only automate around 22% of work hours. The increase to 30% can be attributed to advancements in AI technologies like ChatGPT and other tools, which are now capable of performing tasks that require genuine expertise and even creativity.

According to McKinsey’s analysis, there may be a loss of 1.1 million jobs paying $38,200 or less, but a 3.8 million increase in jobs offering higher salaries of $68,700 per year. However, the lowest-paid workers, earning $38,200 or less, will be heavily affected, with up to 14 times higher chances of needing to switch jobs.

The advent of generative AI brings forth both opportunities and challenges for the workforce. While industries like healthcare will see significant growth, certain job roles may face a decline in demand. It is crucial for individuals to adapt to the changing landscape by acquiring new skills and exploring emerging industries. By embracing these changes, workers can navigate the disruptions caused by generative AI and thrive in the evolving job market.

Frequently Asked Questions (FAQs) Related to the Above News

How many job switches are expected due to generative AI?

According to the McKinsey Global Institute study, approximately 12 million job switches are anticipated as a result of generative AI by 2030.

Which industries are likely to experience job growth due to generative AI?

The healthcare sector is projected to add around 5.5 million new jobs through 2030, while there will be a significant surge in demand for STEM jobs across various industries beyond technology.

Which specific job roles are expected to decline with the rise of generative AI?

Positions such as office support and customer service are likely to decline by 18% and 13% respectively by 2030. The food service sector may experience a smaller decrease of 2% during the same timeframe.

Are these job disruptions expected to disproportionately affect certain groups of people?

Yes, unfortunately, these changes may disproportionately affect women and pose an elevated risk for Black and Hispanic employees.

Does the adoption of generative AI mean the elimination of jobs?

No, automation adoption does not necessarily mean the elimination of jobs. Many jobs will still remain, but the nature of work and how it is carried out will change significantly.

How much of workers' work hours are projected to be automated by generative AI?

McKinsey estimates that individuals who continue in their current roles will see approximately 30% of their work hours automated by generative AI.

How has the ability to automate work hours increased with generative AI compared to previous technologies?

Previously, current technologies could only automate around 22% of work hours. With advancements in AI technologies like ChatGPT, this has increased to 30%.

What is the expected impact on job salaries due to generative AI?

According to McKinsey's analysis, there may be a loss of 1.1 million jobs paying $38,200 or less, but a 3.8 million increase in jobs offering higher salaries of $68,700 per year.

How can workers adapt to the changes brought by generative AI?

It is crucial for individuals to adapt to the changing landscape by acquiring new skills and exploring emerging industries in order to thrive in the evolving job market.

Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.

Share post:

Subscribe

Popular

More like this
Related

Apple Inc. AI Stocks Rank 6th on Analyst List, With High Growth Potential

Apple Inc. AI Stocks ranked 6th with high growth potential, experts bullish on tech giant's AI capabilities amidst market shifts.

Anthropic Launches Advanced Claude AI Chatbot for Android Users, Revolutionizing Conversations and Document Analysis

Anthropic's Claude AI Chatbot for Android offers advanced features for seamless conversations and document analysis, revolutionizing user experience.

ChatGPT Plus: Is it Worth the Investment for Advanced Content Generation?

Discover if ChatGPT Plus is worth the investment for advanced content generation. Compare features and benefits for improved AI language model.

Tech Giants Invest Billions in Aragon’s Renewable Cloud Centers

Tech giants invest billions in Aragon's renewable cloud centers, making it Europe's leading hub for cloud storage. Don't miss out on this cutting-edge development!