A new report by McKinsey Global Institute has shed light on the potential impact of Artificial Intelligence (AI) on the job market in the US, predicting that AI could replace certain roles by 2030. The report highlights the transformational power of AI and changing consumer habits, resulting in a shift in employment opportunities across various industries, necessitating workers to find new jobs.
Jobs at High Risk of AI Replacement
The study identifies specific jobs that are at high risk of being replaced by AI technology. Roles involving automation, such as data collection and repetitive tasks, are expected to be replaced to make work processes more efficient. Employment sectors such as office support, customer service, and food service are likely to be impacted more by this AI-driven transformation. The report estimates that around 12 million occupational transitions may be required in the US alone by 2030, urging workers to explore new career paths.
Impact on Low-Wage Workers
Low-wage workers are expected to bear the brunt of these anticipated job shifts due to AI. The report highlights that those earning less than $30,800 a year, and those earning between $30,800 and $38,200 a year, are up to 10 and 14 times more likely to require occupational changes compared to higher earners.
Upskilling and Job Growth
The report emphasizes that the shift in jobs will necessitate low earners to acquire new skills to transition into different occupational sectors. It underscores the importance of keeping up with technological trends to survive in the job market, as upskilling will enable the coexistence of humans and AI.
Emerging Jobs and Industry Growth
While some jobs will be at risk, the report points out that the shift will also create job opportunities in certain sectors. STEM (Science, Technology, Engineering, and Mathematics) jobs are anticipated to see a 23% rise in demand by 2030. The healthcare industry is expected to experience the largest increase, with a demand for 3.5 million more jobs in health aides, health technicians, and wellness workers. Sectors like banking, insurance, pharmaceuticals, healthcare, and transportation services will undergo digital transformations, leading to increased job growth.
