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Implications of Accelerated AI Adoption and its Impact on American Work Hours: McKinsey
Advances in artificial intelligence (AI) technology are expected to reshape the workforce in the United States by the end of the decade, as more companies adopt AI tools to automate tasks. A recent report by the McKinsey Global Institute highlights the potential for AI to accelerate automation in the economy.
According to the report, without generative AI, automation could take over tasks accounting for 21.5% of the hours worked in the US economy by 2030. However, with generative AI, that share could jump to 29.5%. This means that about 30% of the hours worked by Americans could be automated by 2030.
The report identifies several occupations that are likely to see a greater share of automated work hours with the help of AI. Professionals in science, technology, engineering, and mathematics (STEM) fields could see the percentage of their automated work hours increase by 16 points to 30% by 2030. Education and workforce training professionals could also see a 16% increase, although their baseline automation without AI acceleration is lower, at about 23%.
Other job categories that could see notable increases in automation include creatives and arts management, which could see a 15-point jump to about 25% of hours worked, and business and legal professionals, who could see a 14-point increase to 30% of hours worked.
On the other hand, the report suggests that agriculture, production work, and health and wellness technicians are less likely to see significant increases in automation due to AI. These fields already have high automation baselines, starting at 27%, 30%, and 15% respectively.
While the widespread adoption of AI may lead to some changes in job activities and labor demand, the report does not predict significant job losses. Historically, technological advances have fueled economic and employment growth. The report suggests that the occupational categories most exposed to generative AI could continue to add jobs through 2030, although the adoption of AI may slow their rate of growth.
Overall, the report emphasizes that the impact of AI on the workforce will vary across different sectors and occupations. While some fields may see a decline in labor demand, these declines could manifest as slower overall growth rather than net job losses. The adoption of AI is expected to bring both gains and losses to the workforce, but the long-term effects on employment levels are uncertain.
Conclusion: The Impact of AI on Newly Formed Businesses
The advancements in artificial intelligence (AI) technology are poised to revolutionize the workforce in the United States, presenting both opportunities and challenges for newly formed businesses operating in various sectors. As more companies adopt AI tools to automate tasks, it is crucial for entrepreneurs to assess the potential impact on their operations and strategize accordingly.
According to a recent report by the McKinsey Global Institute, AI has the potential to accelerate automation in the economy. By 2030, approximately 30% of the hours worked by Americans could be automated, with generative AI playing a significant role. This AI-driven automation is likely to affect different job categories in varying degrees.
For newly formed businesses, particularly those in science, technology, engineering, and mathematics (STEM) fields, the reliance on AI tools could become more pronounced. With professionals in these domains potentially experiencing a 16-point increase in automated work hours, startups operating in STEM-related areas may need to adapt their business models and workflows to leverage AI effectively.
On the other hand, sectors such as agriculture, production work, and health and wellness may see comparatively lesser impacts from AI-driven automation. Nonetheless, even in these fields, it is important for new businesses to stay informed about AI advancements, as the technology may still influence specific tasks or workflows within their operations.
While the introduction of AI could lead to changes in job activities and labor demand, the report does not foresee significant job losses. Instead, it emphasizes that historically, technological advances have contributed to economic and employment growth. This suggests that new businesses in occupations most exposed to generative AI may continue to see job growth, albeit at a potentially slower pace.
In conclusion, as newly formed businesses navigate the changing landscape shaped by AI, it is essential to stay abreast of the latest developments and assess potential opportunities for AI integration. While the impact of AI adoption remains uncertain in terms of its long-term effects on employment levels, proactive adaptation and innovation in response to the evolving workforce landscape could help startups thrive in the AI-powered future.
Original Article First Published at: https://www.foxbusiness.com/economy/accelerated-adoption-ai-automate-30-americans-work-hours-mckinsey