Editorial
Duolingo, which develops apps for language learning, recently laid off about 10% of its contractors. This was largely the result of large-language models (LLM), which can automate many of the translations and other processes for creating content. The remaining contractors are mostly focused on checking that the output meets the guidelines for the Common European Framework of Reference for Languages (CEFR).
Duolingo’s move is far from an isolated case. It’s part of a broader trend showcasing the disruptive power of AI. The pace of this change is likely to accelerate, as employers realize how the technology can greatly reduce costs and improve productivity. Many job roles are at risk of being automated and potentially phased out altogether.
However, if employers simply let this trend unfold unchecked, the societal repercussions could be severe and far-reaching. They could potentially even adversely affect their own businesses.
What’s needed is a serious focus on reskilling. It should also come with backing of both federal and state governments to effectively address this challenge.
The Double-Edged Sword of AI
During my recent trip to India, I saw firsthand the profound impact of AI on everyday life. On the positive side, I observed how technology is empowering many people. Their smartphones have become vital tools, opening up new opportunities and innovative ways to earn a living.
However, there's also a darker side to this technological revolution. I noticed a significant reduction in jobs, especially in sectors characterized by routine and repetitive tasks. This was the case in roles like paralegals, database administrators, documentation writers and call center agents.
The fact is that the effects of AI on employment are likely to first impact developing countries, where lower-skilled jobs are more common. But it's important to note that AI is rapidly getting better at handling more complex tasks. This means that high-skilled workers are not immune.
For example, a study from Goldman Sachs estimates that 300 million jobs across the globe could be impacted. A large proportion would be white-collar roles, such as in finance, law and social sciences.
According to the report:
Analyzing databases detailing the task content of over 900 occupations, our economists estimate that roughly two-thirds of U.S. occupations are exposed to some degree of automation by AI. They further estimate that, of those occupations that are exposed, roughly a quarter to as much as half of their workload could be replaced.
Related Article: Report Reveals Workers Most ‘Exposed’ to AI
The Reskilling Imperative
The dilemma of AI and job impacts is not about whether to develop the technology or not. Should the United States opt for stringent restrictions or heavy regulation of AI to safeguard employment, it's inevitable that other nations will step in to bridge the technological divide. This would result in American companies having diminished influence over the development and implementation of these technologies. This strategy would also place them at a significant competitive disadvantage globally. The irony is that it would result in even more job loss.
Rather, there needs to be a serious effort for reskilling. This will allow for a transition of workers to the new types of jobs of the AI era.
But reskilling is not about grasping intricate models, complex math or having proficiency with Python. Instead, it’s about enhancing how employees perform their current roles.
This actually takes a rethinking of how to use technology. The traditional approach is to enter information in an app and analyze the output. It’s the hallmark of most corporate systems like CRMs and ERPs.
But AI is different. To get the best use from it, there needs to be an understanding of the capabilities of this technology and how it can improve performance. The interaction is with natural language — and this means understanding the intricacies of prompt engineering. When done effectively, this can allow a person to build a bot, copilot or LLM to carry out tasks. A person can then make changes to it to ensure the system gets better results over time.
When it comes to reskilling, the US has lagged. Historically, the emphasis has been on free market principles, which have certainly played a crucial role in developing a robust and dynamic economy. However, this laissez-faire attitude is less effective when it comes to reskilling for the AI era. So it’s imperative for companies to commit to this initiative, backed with sufficient resources.
Active involvement from both federal and state governments is crucial as well. They can facilitate reskilling efforts by offering resources for training programs, potentially in the form of tax credits. This approach would ease the financial burden, particularly for smaller companies, enabling them to establish their own initiatives.
Such government-backed programs would also contribute to the growth of a vibrant industry focused on AI education and training. This could ultimately turn into a competitive advantage for the country.
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Related Article: Generative AI Could Make the Workplace More Equitable — or It Could Be a Disaster. It’s Up to Us
Conclusion
The swift growth of AI across different industries requires a significant shift towards reskilling in today's workforce. This change presents new job prospects and roles tailored to the AI era. To effectively leverage these opportunities, a holistic reskilling strategy is essential. It's not solely about mastering AI technology. It's about reimagining its application to job roles. But ultimately, businesses and governments have a responsibility to society to embrace AI's potential as well as invest in the skills and knowledge that will empower the workforce to thrive.
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