Job security is a concern for most professionals at some point in their career. But now, modern workers have to grapple with the threat of artificial intelligence and whether AI could replace the need for their human abilities altogether, rendering their current role non-existent.
Naturally, workers in certain industries feel more vulnerable to this threat than others. This has also left many asking,” Which industries will AI impact the most?”
At Datarails, we focus on financial technology and finance AI tools. While that is certainly part of the discussion we’ll have today, we also want to discuss other sectors which are most and least likely to suffer job losses at the hands of AI.
AI and The Job Force
Before we dig into specific industries, let’s take a step back and consider the entire impact of AI on the job force. Per a 2017 report by the McKinsey Global Institute, it is estimated that 400 to 800 million jobs worldwide could be lost to AI and automation by 2030.
However, this report came before the COVID-19 pandemic. This global event changed everything, including the rate at which job displacement could occur. While the full impact of COVID-19 on AI and job security is yet to be fully understood, specific industries have clearly already seen a significant increase in automation due to the pandemic.
In a 2022 report, McKinsey explained: “During the pandemic (2019–22), the US labor market saw 8.6 million occupational shifts, 50 percent more than in the previous three-year period.”
They add: “By 2030, activities that account for up to 30 percent of hours currently worked across the US economy could be automated—a trend accelerated by generative AI.”
These predictions are useful. However, it’s also worth emphasizing that they are just that: predictions. If the pandemic taught us anything, it’s to expect the unexpected. Even when you look at a 2020 report from McKinsey and how the pandemic would change the job landscape, we see that, in actuality, their predictions ended up falling short:
“Some 8.6 million occupational shifts took place from 2019 through 2022. Now even more change is in store. We expect an additional 12 million occupational shifts by 2030. The total number of transitions through 2030 could be 25 percent higher than we projected a little over two years ago.”
Which Industries Will AI Impact?
Contrary to popular belief, the impact of AI isn’t all about job losses. In fact, many industries are expected to see significant job growth thanks to AI. Let’s explore some of the industries that AI will most impact, both positively and negatively.
Industries Most Impacted by AI
Some industries are expected to see significant job growth due to AI, while others may see a decline in specific roles but an increase in others.
For better or worse, here are some of the industries that will be most impacted by AI:
Healthcare
The healthcare industry is experiencing a revolution thanks to AI. Predictive analytics, personalized medicine, and enhanced diagnostics are just the beginning. AI tools are becoming indispensable for improving patient outcomes and optimizing healthcare delivery.
As for jobs, AI is expected to create demand for data scientists, machine learning engineers, and AI specialists in the healthcare industry. These professionals develop algorithms, analyze big data, and build AI solutions to improve patient care. Still, some healthcare jobs, such as radiologists and pathologists, may decline due to AI.
These roles likely will not become obsolete—instead, they will shift towards more specialized tasks that require human intervention.
Finance
In the finance industry, AI technology has already proven integral in fraud detection, automated trading, and streamlining processes, among other capabilities. The efficiency and decision-making improvements brought about by AI in finance are undeniable.
Datarails’ FP&A Genius, for instance, leverages the power of conversational AI to provide unprecedented real-time insights to finance teams. Instead of leaving finance professionals to dig for information, FP&A Genius automatically generates dynamic charts and financial reports, letting decision-makers drill down on the underlying data.
This is an excellent example of AI simply freeing up their time for higher-value tasks rather than taking jobs away from finance professionals.
Still, AI will likely replace some jobs in this industry and effect finance and FP&A. These include entry-level jobs like data entry clerks and some roles in risk management and assessment.
Read this next: 7 AI Trends in Finance in 2024.
Retail
Online shopping was already a booming industry before AI came into the picture. Now, with AI-enabled solutions like product recommendations and chatbots, retailers can give more personalized experiences to their customers.
AI tools can analyze customer data to understand purchase patterns and preferences and then use that information to provide relevant product suggestions. On the other hand, chatbots provide efficient and 24/7 customer service, which can boost overall customer satisfaction. Inventory management systems powered by AI can also optimize product stocking and reduce waste, leading to cost savings for retailers.
What does all of this mean for retail workers? The implementation of AI will likely lead to the replacement of some retail jobs. Notably, this includes traditional customer service roles. However, it also opens up opportunities for new roles in data analysis and management of AI systems.
As we’ve seen in this and other industries, introducing AI tends to be a double-edged sword.
Education
With the rise of remote learning due to the pandemic, AI tools earned their place in the education industry, proving to be a vital advantage to schools and students with access to them.
AI-powered learning platforms can adapt to each student’s needs, providing personalized curriculums and feedback. This not only benefits students but also reduces teachers’ workload in terms of lesson planning and grading.
Some schools also use AI chatbots that can act as virtual teaching assistants, providing quick and accurate responses to students’ commonly asked questions.
Does this mean teachers will be replaced by AI? Probably not. While AI may take over some routine tasks, teachers still play a decisive role in the education system as mentors and facilitators of learning. These human interactions remain irreplaceable by technology, providing a sense of security in the face of AI.
Of course, we have to look at the potential downsides of AI in education as well. Some experts predict that relying too heavily on AI technology will lead to students being less critical thinkers and more reliant on machines for their learning. While this is part of a broader conversation, there are also concerns about data privacy and security when implementing AI tools in classrooms.
Transportation
Predictive maintenance, route optimization, and especially self-driving cars are just a few ways we already see AI implemented in transportation.
Self-driving cars, in particular, are a hot topic of discussion and development. They could potentially increase road safety and reduce accidents caused by human error. Self-driving cars might even improve traffic flow and reduce carbon emissions by optimizing routes and speeds. There are also possibilities for more efficient public transportation systems, as AI can analyze data to determine the most effective routes and schedules.
This does bring up ethical considerations, as machines would essentially make decisions about safety and potential harm. If self-driving vehicles become mainstream, there is also the concern of job displacement for drivers in various industries. Considering that more than 15 million Americans work in transportation, this has the potential to impact the workforce significantly.
There are calls for responsible development and proper regulations in implementing AI in transportation to counter these potential downsides. When the rules and guidelines for AI and technology are well-established, the leash is shorter and more manageable to avoid misuse, over-reliance on AI, or companies choosing to shrink their human workforce and rely on AI.
Industries Least Affected by AI
On the flip side of the conversation is this question: What industries will not be affected by AI? To answer that question, it’s important to note that most, if not all, industries will be impacted in some way. However, certain industries will feel the impact less and in more positive ways.
Arts and Entertainment
Though there are many ways to apply AI in creative processes, its direct impact on the arts and entertainment is limited. Human creativity and interpretation remain at the heart of this industry and taking that away turns art and entertainment into something else entirely.
Human Resources
AI does automate some administrative tasks in HR. Still, the HR industry’s core—understanding, managing, and supporting human workers—still relies on genuine human interaction.
Social Work
Social work is largely centered around empathy and human interaction, which leaves little room for AI involvement. As of now, no robot can imitate the delicate nature associated with caring for some of the most vulnerable groups.
Personal Services
It might be a while before a robot replaces your hairstylist, massage therapist, personal trainer, or other personal service provider. These jobs rely on the aforementioned human interaction and skills that AI cannot replicate.
Looking Ahead: AI’s Role in Transforming Industries
AI has the potential to transform many industries.. However, industries grounded in human interaction and emotional intelligence are less likely to see AI take over entirely. To secure their place in the future of their industry, most workers are encouraged to augment their existing skill sets with AI-related knowledge.
At Datarails, we are at the forefront of integrating AI into finance. We leverage AI’s vast capabilities to automate data consolidation, enhance reporting, and provide real-time insights. Our platform shows how targeted applications of AI can revolutionize aspects of business operations without displacing the invaluable human elements of decision-making and strategic planning.
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