McKinsey has released its latest Report has released a study in which it shows that AI is going to have a big impact on the job market in the coming years. One of the biggest impacts will be the need for job changes. An estimated 12 million people in both Europe and the US will reportedly need to change occupations or improve their skills. This points to the importance of reskilling and upskilling to prepare the workforce for new types of jobs in the future.
The report predicts an increase in demand for skills that are technological, social and emotional in nature. In contrast, routine tasks and low-paying jobs are likely to decline, increasing inequality in the job market. This means that while high-skill, high-paying jobs will become more popular, traditional low-skill roles may offer fewer opportunities. Of course, if this happens, it could increase economic inequality.
Companies and governments will need to collaborate to tackle these challenges. Many groups are already planning to invest heavily in training programs to help their employees switch to new roles. In addition, the deployment of artificial intelligence can increase productivity and economic growth, but this will be possible only when the workforce is equipped with the necessary skills. In such a situation, people will have to constantly upgrade their skills in the coming years.
Overall, while AI and automation create significant opportunities for economic growth, they will also present considerable challenges that will need to be addressed together by businesses, governments, and institutions.