The impact of artificial intelligence (AI) on the labor market could be significant, and investors need to pay attention. AI technology like ChatGPT could have an immediate impact, as businesses across different industries are experimenting with integrating this technology. AI could have a big influence on the fast-food, beverage, customer service, and programming sectors, allowing companies to make the most of their labor and resources.
More than 5.2 million Americans are employed in the fast-food industry, making it a big contributor to the economy. Companies like McDonald’s and Wendy’s are beginning to incorporate AI into their operations, introducing self-order kiosks and automated restaurants that still require staff, but could reduce labor costs over time. Starbucks are leveraging AI to increase efficiency with its Deep Brew platform, optimizing store labor schedules and inventories. Tech giants have not been immune to layoffs, with almost 141,000 jobs shed in 2023 alone. International Business Machines has frozen certain positions that could eventually be taken up by AI. Programming roles could be especially affected by AI in the future, as language models become better at writing software code. There could also be a decrease in demand for customer service reps who can be replaced by AI-powered chatbots.
The opinion that AI will hurt labor and the economy has been around for some time, but technology has been historically proven to raise output. A study by PwC suggests AI could add anywhere from $15.7 trillion to the global economy by 2030, providing 1.2% in growth each year. There is still a potential for human labor to be displaced by AI, however, new and improved roles could be created.
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