AI to automate 83 million jobs within 5 years
AI to automate 83 million jobs within 5 years. The World Economic Forum’s (WEF) Future of Jobs Report 2023 predicts that the rapid progress of AI and other emerging technologies will give rise to about 69 million new job opportunities by 2027. On the flip side, these advancements will also lead to the displacement of approximately 83 million jobs. As a result, the report suggests a net decrease of roughly 14 million jobs worldwide over the next five years.
According to an extensive survey conducted among 803 companies, the findings presented in the 296-page report emphasize employers’ expectations of substantial shifts in job roles. It is projected that around 23% of positions will undergo transformation over the next five years. Certain roles are anticipated to experience a growth rate of approximately 10.2%, while others are expected to decline by 12.3%.
According to the WEF report, job growth is primarily fueled by major trends such as the shift towards sustainability, ESG standards, localized supply chains, and technological advancements. The report identifies significant economic challenges, including high inflation, slower economic growth, and supply shortages, as the most prominent threats.
The report forecasts that the most rapidly expanding job sectors will be AI, machine learning, sustainability, business intelligence analysis, and information security. Additionally, sectors such as education, agriculture, and digital commerce are expected to experience substantial growth.
Saadia Zahidi, the Managing Director of WEF, recognizes the past three years as a period of global uncertainty and upheaval, marked by factors such as COVID-19, geopolitical and economic changes, and the rapid advancement of AI and other technologies, which further amplify the risks of uncertainty.
Nevertheless, the report presents an optimistic outlook by emphasizing the significance of investing in education, reskilling, and social support structures to prioritize individuals in the future of work. Governments and businesses are encouraged to invest in supporting the transition to future jobs to ensure resilience.
According to The Future of Jobs Report 2023, job roles influenced by big data and AI are projected to undergo rapid growth. Around 75% of respondents anticipate job expansion in this sector, making it the leading source of future employment opportunities.
The report predicts an average employment growth rate of 30% for data analysts and scientists, big data specialists, AI machine learning specialists, and cybersecurity professionals by 2027.
Highlighting the impact of AI and its potential to displace workers through algorithms, the report states that nearly 75% of surveyed companies plan to implement AI, which will lead to significant workforce turnover. Approximately 50% of organizations anticipate job growth resulting from AI implementation, while 25% expect job losses.
Moreover, the report indicates that 42% of surveyed companies prioritize training workers to effectively utilize AI and big data over the next five years. However, this priority ranks slightly lower than analytical thinking (48%) and creative thinking (43%) in terms of importance.
The WEF survey identifies skills gaps and challenges in attracting talent as the main obstacles to transformation across various industries. This underscores the critical need for training and reskilling initiatives.
The report’s projections suggest that by 2027, six out of ten workers will require training, while only half of the current employees have access to sufficient training opportunities. Additionally, the report emphasizes that, on average, 44% of an individual worker’s skills will need updating.
The report emphasizes the increasing significance of strong cognitive skills in today’s job market, particularly the growing emphasis on complex problem-solving. Analytical thinking and creative thinking are identified as the most crucial skills for workers in 2023, and their importance is expected to persist over the next five years.
According to the report’s findings, companies in various sectors and countries can anticipate an average turnover rate of 23% in their labor markets over the next five years. This turnover includes both the emergence of new roles and the removal of existing ones, implying that around 23% of the current workforce will undergo job transitions.
The World Economic Forum (WEF) emphasizes that this information can provide valuable insights into scenarios where slight variations in total job numbers within a particular country or industry may conceal significant underlying transformations in a vibrant labor market.