AI and Job Market: Effects of Automation on Employment

AI and Job Market: Effects of Automation on Employment

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Updated on May 9, 2023 00:39 IST

Here you will understand how the emerging technologies such as Artificial Intelligence is affecting job market. We have discussed both positive and negative impacts along with opportunities AI is creating. Let’s explore!


It is needless to say that rapidly growing AI and automation have changed the perception of people for their future and career. The advancement of AI and Automation technologies has brought so many shifts in the life of individuals and industries. According to Forbes, from the cloud-based service company Salesforce to grocery delivery company Instacart have announced incorporating ChatGPT into their apps or websites to improve customer experience. 

A survey conducted by revealed that 49% of companies in the USA are using ChatGPT, while 30% are planning to do so. On the other hand, widespread adoption and acceptance of Artificial Intelligence and automation technologies will probably lead to considerable job losses in the future. However, extensive use of AI will possibly generate new jobs too. 

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In this article, we will dive deep into the impact of AI and automation on current jobs and how you can prepare yourself for this shift. 

Check out: Best Resources to Learn Artificial Intelligence in 2023

Positive Impact of Automation on the Job Market


The most impacted industry by AI and automation is healthcare; now, deadly diseases like cancer can be detected by The Static Droplet Microfluidic device, which is developed by the University of Technology Sydney (UTS). This device can detect broken tumour cells circulating in the bloodstream. AI has also helped reduce medical image processing time by up to 10x. 

 To design and develop AI-powered healthcare systems and to manage patient data, the emerging job roles in the healthcare sector are 

  •  Medical Data Analysts 
  • AI Engineers 
  •  Health Information Technologists.  


AI and automation will revolutionize manufacturing by making this field more cost-effective, sustainable and efficient.  

 For example, predictive maintenance, quality control, robotics and smart factories will certainly affect this field, leading to more job losses. Still, it will also create opportunities for workers proficient in AI and robotics. According to the Boston consulting group (BCG) study, the robotics market will climb by $260 by 2030. 

The emerging job roles are for maintaining and integrating AI into existing manufacturing systems and developing new technologies.  

  • Robotics Technicians 
  •  Process Automation Specialists  
  • AI System Integrators  


There are several uses of AI and automation in agriculture; it has not only impacted the efficiency of workers but also reduced the maintenance cost. For example, drones, optical sensors, Electrochemical sensors for soil nutrient detection, and mechanical Soil sensors for agriculture have changed the way of farming.  

A market study published by global industry analytics says that the global market for Autonomous Farm Equipment is estimated to reach US$115.2 Billion by 2024.  Analyses of agricultural data and implementing machine learning algorithms for predicting crop yields and agricultural equipment will require the following job roles. 

  • Agricultural data engineer 
  • Agricultural robotic engineer
  • Agricultural software developer


Due to the growth of AI and automation retail industry is rapidly changing. Virtual assistants and chatbots have changed customer services by automating repetitive tasks like answering FAQs, emails and queries.  

Research conducted by Accenture shows that the potential of Ai is estimated to boost worth by an average of 38% by the year 2035. Additionally, 16 different industries in 12 countries are projected to get an economic boost of US$14 trillion by 2035. It is not exaggerating to say that AI and automation have majorly affected the retail industry. To analyse the customer data and implement AI-powered solutions, the emerging job roles in the retail industry are mentioned below.  

  • AI Retail Analysts 
  • Customer Experience Specialists 
  • Supply Chain Automation Specialists  


The way of transporting goods has changed because of self-driven cars and trucks. According to a new report, self-driven vehicles can reduce accident cases by 90%, which can save the $190 billion in healthcare associated with accidents (source 

The emerging roles for maintaining and developing new transport solutions are mentioned below.  

  • Autonomous Vehicle Technicians 
  • UAV Operators 
  • Logistics Automation Specialists  

Negative Impact of Automation on the Job Market  

Removal of Workers 

In the modern era, technology is like a blessing for every organisation trying to reduce its cost and enhance efficiency. Due to that, every company is considering the role of AI in today’s time. The accuracy and swiftness of well-trained machines and artificial intelligence may lead to the removal of workers from some particular areas.  

Eliminating workers could result in economic impacts like unemployment, poverty and mental health of the individuals going through this.  

Effect on Least Qualified Workers 

One can see AI and automation’s impact on the job market’s least qualified workers. The one working in a firm(at risk), and if he or she evaluates himself or herself as the least qualified, then one should acquire new skills to switch careers to stand in the world of automation.  

 They should take a step to move forward with new skill sets and training to compete with the world full of technology.  

Ramifications of Automation 

The extensive usage and adoption of AI have raised many questions in the minds of individuals in society. What will happen If a certain company’s technology and AI get stronger in solving complicated tasks? In such a situation, what is the assurance and responsibility of that company that they will use these technologies ethically and uprightly?  The implementation of AI and automation should be done to ensure the advancement of society and the people.  

Dependence on Technology 

Dependence on AI could lead to more job displacement, security concerns and unpredictability. For example, an automated vehicle can be hacked and used for an accident, and an algorithm of financial trading can be controlled for personal gain and can cause market instability. The rapidly growing AI and automation industry could make people more dependent on the technologies. 

Geographical Impacts 

Negative impacts of AI and automation could lead to more jobs in certain regions or countries than in others. For example, regions or areas that rely on the manufacturing industry would feel more negative effects like displacement of workers, poverty and unemployment. 

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Steps to Handle the Shift in Technology

At Individual Level

According to a survey by that questioned 1,000 business leaders in the United States, 63% believe ChatGPT will probably lead to job layoffs within the next five years. Individuals need to handle the shifts brought by AI and tackle them; these steps can be followed.  

  • To remain relevant to the job market, one should attend seminars, conferences and workshops related to data science to learn more about it. Courses related to data science are as follows. 
  • Build a network and connection to stay updated with the latest trends.
  • One can adapt to the changes coming with the technologies by staying adaptable. For example, one used to working in a traditional office setting must stay adaptable to work remotely if any shifts happen in the company. 
  • Start learning programming languages because the rapidly growing Automation industry will require more professionals skilled in software development. 

Steps to Handle the Shift in Technology

At Company Level

  • Companies can stay competitive by investing in education and training programs related to data science, artificial intelligence and machine learning for workers. Courses related to data science and machine learning are as follows. 
  • Companies should acknowledge implementing new technologies like chatbots,  biometrics, virtual assistants and Ai tools to increase productivity and efficiency.  
  • By creating new job roles related to software development, robotics and AI. 
  • By encouraging employees to experiment with new ideas and innovation. 
  • Companies can collaborate with other universities or organizations to advance new developments. 

Future of Employment in the Age of AI

Needless to say, Artificial Intelligence (AI) has transformed the perspective of people towards businesses based on technology and has majorly impacted the job market. On the other hand, the maintenance and development of Ai tools in sectors like healthcare, finance, transportation, and retail require more working professionals who can work in data science, machine learning and software development. Additionally, time-consuming tasks like replying to frequently asked questions of customers and repetitive queries have become easy because of the use of highly trained artificial intelligence chatbots in retail businesses. In the healthcare sector, AI has also helped reduce medical image processing time by up to 10x.

Based on the global risk report announced by the world economic forum, by 2025, 85 million jobs will displace, and 97 million jobs are expected to be generated by AI and automation. To prepare individuals for this upcoming technological shift, the education system needs to adapt to the changes brought about by this technological shift. 

  • Integrating Emerging technology in the Curriculum 
  • Offer training and certification for emerging technologies like data science, machine learning and robotics.
  • By focusing on skills that are in high demand. 
  • By developing entrepreneurial skills for opening start-ups and taking risks.
  • Integrating internships, projects and learning programs to get hands-on with emerging technologies. 


The rapid growth of artificial intelligence and automation will probably affect the job market worldwide. Still, at the same time, it will help in many sectors considered risky for human workers. Automated machines and tools can perform hard tasks at construction sites, which is how AI and automation can reduce manpower. 

Besides its negative impact on the displacement of workers, it will surely generate many jobs. According to, by 2030, AI can deliver global economic activity of around $13 trillion.

Contributed By: Srashti Soni


What is the major benefit of using an AI chatbot in business?

Chatbots can analyse customers' experience with the company, that later helps in improving the product quality or overall experience with the customer.

How will AI and Automation affect the job market?

Widespread adoption and acceptance of AI and automation technologies will probably lead to considerable job losses in the future, however extensive use of AI will possibly generate new jobs too.

How can AI be used in generating employment?

It will surely generate many jobs in software development, data science, artificial intelligence and machine learning.

How AI is used in decision-making?

The result and data gathered by AI can be used to enhance the bond between the customer and the company.

How AI is used to strengthen the safety of the workplace?

AI technologies like robots and drones help the workers at construction sites to do complicated work in minimum time and this is how it is improving the safety of workers.

Automation and AI will generate jobs in which sector?

Software development, data science, artificial intelligence and machine learning.

What should the least qualified workers do to not get affected by AI and automation?

They should take a step to move forward with new skill sets and training to compete with the world.

How does AI help an organisation to build great relationships with customers?

Whenever a customer gets a quick response to their queries and problems it makes the customer-company bond more appropriate.

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