According to researchers, artificial intelligence is developing into a brand-new general technology that will have an equivalent economic impact on the steam engine, electricity, and the internet. As middle management positions are eliminated, the impact of AI on organizational structures will result in a future workplace that empowers junior employees.
Millions of job listings and resumes were utilized by the researchers to analyze the supply of existing workers and the need for new ones.
With a rising proportion of workers in entry-level and non-management positions and a decrease in those in middle management or senior positions, businesses utilizing AI are also becoming less top-heavy and flatter. Businesses that invest more in AI also upskill their workforces, boosting the proportion of employees with bachelor’s, master’s, and Ph.D. degrees.
Alex Xi He, an assistant professor of finance at the Smith School of Business at the University of Maryland and one of the researchers on the paper, said that as prediction and decision-making skills improve thanks to artificial intelligence, entry-level employees will have more autonomy and will not require as much middle management.
Additionally involved were researchers from Columbia University, the University of California, Berkeley, and Cognism Inc., a sales intelligence company with offices in London. Researchers used Cognism’s CV data collection, which included about 64% of full-time employment in the United States and almost 180 million job openings from Boston-based Emsi Burning Glass.
Middle management is less necessary as entry-level workers have more autonomy thanks to AI’s improved capacity for prediction and decision-making.
Alex Xi He is an assistant professor of finance at the University of Maryland’s Smith School of Business.
According to this study, enterprises that use AI have altered the makeup of their industries. Employing educated personnel with STEM (science, technology, engineering, and math) training, analytics, and IT experience helped AI-adopting companies design the workplaces of the future.
Hr Won’t Be Cut in The Future Workplace
The survey also discovered that these businesses did not automate some jobs. According to the report, businesses that make significant investments in AI “do not diminish their demand for some of the skill categories that are most typically projected to be replaced by AI, such as customer service, HR, and legal expertise.”
He claimed that rather than automating human work, artificial intelligence (AI) “primarily benefits enterprises by encouraging product innovation and boosting the scale of the firms.” He pointed out that businesses adopting AI are also hiring more people.
The National Bureau of Economic Research (NBER), a private nonprofit research organization with headquarters in Cambridge, Massachusetts, examined the notion that machine learning is a general purpose technology (GPT) in a report published last month.
Many of the traits of a GPT in machine learning were discovered in the paper, including popular interest, the ability to support continual technical advancement, and the capacity to foster innovation.
In order for enterprises to prepare for the change, such as by investing in internal R&D capabilities, working with academic researchers, and taking other precautions, the paper concluded that it is critical to detect GPTs as early as possible.
Avi Goldfarb, a professor at the University of Toronto and one of the authors of the NBER research, stated that it is yet unclear how organizations would evolve as a result of the adoption of AI. Particular may be flatter and “let lower-level employees make decisions,” yet in some industries, this could result in centralization.
Our goal is to foresee change that benefits from improved prediction, but Goldberg noted that it is challenging to predict how much change would manifest itself in general terms.
College of Maryland’s He claimed that the researchers’ findings indicate that AI is “largely” becoming a GPT. But because AI is still in its early stages of adoption, “in the years to come, we should see uses of AI technologies more widely and perhaps in more transformational ways.”