The HR leaders we spoke with were eager to explore how artificial intelligence (AI) affects the job market.  It is reassuring to see that these leaders are taking an active role in understanding the impact of AI, and their insights will no doubt be valuable as we navigate this rapidly-evolving landscape.

The Future of Life Institute (FLI) is a non-profit organization dedicated to ensuring that developing and using advanced technologies benefit humanity, such as artificial intelligence (AI) and biotechnology.  The team behind future of life institute is a mix of researchers, public policy experts, and ML scientists.  Last week they issued an open letter stating that all large AI experiments be paused for six months.  Their specific statement is, “Powerful AI systems should be developed only once we are confident that their effects will be positive and their risks will be manageable.”

There is some anxiety in the market.  To investigate, we went back to studying how innovative ecosystems work.  I was quite impressed by one study done on Innovation Ecosystems

Citation: Liang, Jiamin (2022) The innovation platform and its impact on regional innovation ecosystem development.  Doctoral thesis, Northumbria University. 

Many aspects are quite useful for us in this study, but I took away the following three things

1. A thriving ecosystem of skills and innovation means it can anticipate and handle such changes.  One of the reasons why silicon valley continues to be at the top is this foundational attribute
2. We sometimes prioritize Technology as a single element of innovation.  But innovation is a mix of Product, Technology, Market, Resource Allocation/Skills Diversity, and Organizational Innovation)
   1. (You can see HR still dominates in several of these dimensions).  One example that came to my mind when I read this was when Amazon tried to build a Square-type credit card reader; even though they had the product and Technology, they could not compete with Square and exited in 2 years.
3. We must use all of our skills within our ecosystem and maximize the impact as speed is of essence (in essence, hiring, reskilling, upskilling, and leadership all out towards the transformation

The current innovation in large language models directly impacts the labor market, and we are spending much time on this.  One model we are developing classifies jobs into four major categories

1. Disruption:  Jobs that ChatGPT can disrupt like technologies (does not mean job elimination but serves as a platform where rapid progress is possible (For example, KYC automation process in banking, the current technologies are still not the most effective, and the new Technology will accelerate this through hyper-specific automation).  The role that Specific AI will play in this will be significant
2. Productivity Maximization:  Through Copilot models, we can transform the role of Analysts by amplifying and providing the contexts they often lack.  I was testing this through a small experiment.  A financial analyst provides a simple forecast of how Chicken sales are expected to grow in a large food processing company.  They often struggle to write assumptions.  In the experiment, I asked if we could refine the ChatGPT output for assumptions.  ChatGPT provided a set of variables that the analysts were very familiar with.  Still, one variable on changes in Advertising and Marketing channels (what will happen to TikTok, for example, was not typically analyzed by the Financial Analyst, which the analyst felt was very helpful.  Even though this was a 10-minute exercise, it just blew my mind.  So it can truly help the analysts perform at a higher level rather than viewing this
3. Jobs with Skills Creation:  Within each sub-function, it will create the need for more skills and jobs.  In design, for example, the biggest pain point is sustainable design.  As a result, new skills have come into the design function.  The following graphic shows the same.  Minimalistic design systems will bring more field workers into the digital transformation journey.  I briefly interviewed a store manager (during my first post covid grocery shop visit).  I enquired how a chat-based inquiry system for goods stored will have an impact where they do not have to worry about dashboards etc.  The response was positive from a productivity standpoint.  While during a very busy time, such systems will amplify quick checks and drive actions.  (of course, dashboards and detailed analysis will follow through).  If our interfaces transition to chat, our skillsets need to evolve.  We often must bring people with social and public research skills into the design process.  Great opportunities here

4. AI Enablement roles: We must create a host of new roles to be a true AI organization.  Some of these roles will sit in Human Resources.  Some of the roles are as follows:

• • AI Ethics Officer
  • AI Lawyer
  • AI Bias Analyst
  • AI Fairness and Inclusion Specialist
  • Public Policy Analysts
  • Innovation Researcher
  • Innovation Designer

These are great opportunities from a hiring and reskilling standpoint

We believe that new developments in AI will further push boundaries that we have not experienced before, creating new jobs.  Here are some other critical labor market trends

• While all the anxiety about job elimination is happening, labor market hiring challenges are still real.  Eastern European Hotspots like Poland and attracting people from global countries to match the demand that is growing in their ecosystem
• The recruiter’s role is expected to expand as new roles and skills are considered.  (as described above)
• Many companies launching skills architecture initiatives are also thinking about freelancing as a critical component to acquire skills for targeted needs
• Microsoft and Amazon and pioneering several early talent/skills initiatives in Dublin, Ireland
• Microsoft plans to build a large data center in Wisconsin
• Companies in Materials Technology, Battery and Storage, Renewable energy, and Biopharma are in a significant shortage of all resources (Scientists, Engineers, Technologists,  HR leaders, and so on).  We plan to create a report specifically around this and share it with you