In this digital age, most enterprises use artificial intelligence (AI) to some extent. Some see it as an assistive tool that can streamline existing processes and reduce costs. Others, however, fired hundreds or even thousands of people, replacing them with AI-powered solutions.
As an entrepreneur, you may be excited about what this technology can do. For example, the possibility of using an AI website builder to create your site from scratch without writing a single line of code. This aspect alone can result in time and cost savings, making it easier to bring your vision to life.
The question is, can AI replace developers—and other professionals? To what extent can you use this technology to cut labor costs? The answer depends on your industry and type of business, among other aspects, which we’ll discuss below.
AI Job Losses Are Rising
According to Goldman Sachs, AI could replace 300 million full-time jobs due to its automation capabilities. But, as the researchers note, most jobs and industries don't rely on automation alone. Therefore, they use this technology to complement existing roles—and not to replace them.
However, there's no denying that more and more people are losing their jobs to AI. Google, MSN, IKEA, Klarna, Salesforce, and other enterprises have sacked a large part of their workforce over the past few years.
For example, MSN has been publishing AI-generated content since 2020, laying off dozens of journalists and editors.
IKEA, on the other hand, has been training more than 8,500 call center employees to become remote interior design advisers. The reason? Their jobs have been replaced by an AI-powered bot named Billie.
Duolingo, IBM, and British telecom company BT publicly announced their intention to replace employees with AI. At the same time, they started to hire for AI roles so they could develop and maintain their new technology.
Tesla CEO Elon Musk went one step further, saying AI will eliminate the need for human workers at some point. In his opinion, AI-powered tools can replace just about any job out there.
Some Jobs Are More at Risk of Being Lost to AI
Experts predict that automation technologies, including AI, will eliminate 14% of all jobs and transform another 32% over the next decade. This scenario makes sense, given that the average half-life of skills is now a meager five years or even less.
However, some jobs are more at risk of being lost to AI than others. White-collar workers will be the most affected, but those employed in the manufacturing industry may find themselves displaced by automation, too.
With that in mind, let's see a few examples of jobs that are most likely to be automated:
- Content writers
- Accountants and bookkeepers
- Customer service reps
- Financial traders
- Computer programmers
- Graphic designers
- Research analysts
- Video game performers
- Factory workers
- Car and truck drivers
- Cashiers
- Paralegals
- Data entry clerks
- Loan processors
And many others...
Say you operate a grocery store. Would you pay around $30,000 per year for a cashier or switch to self-checkout kiosks, which start at $2,000 or less? Probably the second option.
Now let's assume you want a website for your startup. You could hire a web developer, content writers, graphic designers, and SEO experts, or use AI-powered tools to get things done.
For example, you can build your site and generate images with Wix, optimize your content with Semrush, Clearscope, or Frase.io, and create copy with ChatGPT or similar tools. Sure, you'll still have to do the legwork yourself, but you could save thousands of dollars.
Despite these perks, AI cannot replace human knowledge. You still need the skills and expertise to use this technology to its full potential and integrate it with your existing systems.
AI vs. Employees: Striking the Right Balance in the Workplace
As a business owner, you may find yourself having to choose between AI and a human workforce. While it's true that some roles can be fully replaced by AI, you still need a strong team to get results.
So, instead of laying people off, consider the following options:
Upskill or reskill your employees: Train your team members to work with AI-driven technologies. For example, your copywriting team could learn to use tools like ChatCPT to optimize ad copy, generate content briefs, and find trending topics.
Foster human-AI collaboration: Your employees shouldn't view AI as a threat but as a tool that allows them to get things done faster and better. With that in mind, leverage AI to streamline repetitive tasks so your staff can focus on high-value activities that require creativity and complex decision-making.
Introduce AI-driven roles: Depending on how much you use AI, you could hire for roles that require in-depth knowledge of this technology. This would allow you to maximize its potential and stay at the forefront of innovation. For instance, many companies employ data scientists, AI trainers, prompt engineers, or robotics engineers.
Promote an AI-friendly culture: Foster a work environment where employees feel comfortable using AI tools and processes. Encourage your staff members to integrate AI into their day-to-day work to reduce human error, solve complex problems, and automate routine tasks.
When you're running a team, it's your responsibility to help your employees grow and excel in their roles. After all, your success depends on them. In the current context, this means giving them the confidence and skills to deploy AI for greater operational efficiency.
An example comes from Goldman Sachs, which points to AI's ability to accelerate software development. Programmers can use it to generate code snippets, automate testing, and detect bugs or vulnerabilities in real time.
For instance, AI-powered platforms like Testim and Mabl can automatically create, run, and adapt test cases based on user behavior. Codacy and DeepCode, on the other hand, are capable of generating entire modules, reducing the time spent writing code.
That said, there's no doubt that some workers will lose their jobs to AI. But, as a business owner, it's in your power to keep your best employees around. For starters, empower them to use AI to augment their work. This step alone can boost their productivity and equip them with the skills they need to thrive in a digital world.
