AI May Not Take Your Job Anytime Soon, According to MIT
Recent research conducted by the Massachusetts Institute of Technology (MIT) suggests that although Artificial Intelligence (AI) has the potential to replace certain tasks currently performed by humans, it may not be economically viable for employers to do so in the near future. While studies from organizations such as the International Monetary Fund (IMF), International Labour Organisation (ILO), and World Economic Forum (WEF) have shown that AI will lead to joblessness for a significant portion of the global workforce, MIT’s findings indicate that only 23 percent of tasks exposed to AI are economically attractive for firms to automate.
The study, which focused on the cost-effectiveness of automating various tasks, estimated the cost of deploying AI systems to carry out each task and compared it with the current wage rates for those tasks. According to the analysis, it would not be cost-efficient for businesses in the United States to automate 77 percent of the tasks currently exposed to AI automation. The study concluded that tasks in occupations with low wages, those requiring multiple tasks per occupation, and those carried out in small firms are not economically attractive to replace with AI, even if the cost of AI systems is as low as $1,000.
The findings have significant implications for the global workforce, particularly in regions with lower minimum wage rates such as East Africa, where AI may be even costlier for firms and the replacement of human workers may take much longer. In Kenya, for example, the lowest earners make just $0.83 per hour, which is estimated to be cheaper than deploying AI for certain jobs.
According to the MIT research, jobs in retail trade, healthcare, and logistics are relatively more exposed to AI automation and slightly more cost-effective to automate compared to others. However, even within these sectors, less than 0.25 percent of tasks across occupations will be affected.
The study predicts that AI will only become profitable for businesses to replace humans in the foreseeable future if the cost of AI systems significantly decreases. The researchers suggest finding innovative ways to increase the efficiency of AI systems and reduce their cost to make automation more economically sensible.
While the debate about AI’s impact on various industries continues, the issue has become a point of contention at the Sundance festival, particularly in the film industry. Filmmakers have both experimented with AI as a creative tool and expressed concerns about its potential to eliminate jobs and hinder human expression and connection. The encroachment of AI has sparked negative reactions from many filmmakers, who warn against the mechanization of human instincts and emphasize the importance of human touch in filmmaking.
In conclusion, while AI may lead to job displacement for some workers, MIT’s research suggests that the economic feasibility of replacing humans with AI is currently limited. The cost-effectiveness of automation depends on various factors, including wage rates and the scale at which AI systems are deployed. Achieving cost-efficient AI automation will require technological advancements and innovative strategies to reduce the cost of AI systems.
