Wednesday 6 December 2017

How might AI structure the labour market?

I think that most of the people must agree that once AIs are more widely used in our life, the labour market would be deeply affected. Some economists suggest that the increasing in the use of AIs will make many people lose their jobs, some even suggest than two thirds of the jobs would be replaced by AIs in the future. Of course, the increasing in the use of AIs will increase the demand for the labours that are specialised in this field. The question is how fast AIs will replace human labours and what is the gap between the number of jobs created by AIs and the number of jobs replaced by AIs.

The speed determines how likely the labours in the market have the right skills to match the need for the AI-era economy. And the gap between the number of jobs created and the number of jobs replaced will determine the unemployment rate in the future after entering the AI era.

I do not think the speed of replacing human labours with AIs will be fast; this is because under the modern economic circumstance, the investment required for replacing labours with AIs is relatively large,so only those big institutions and companies may have such financial abilities to replace human labours with AIs; however, there is a weakness of big institutions and companies that they are too big to be flexible, so such major structural change is not going to be conducted smoothly. Those who first replace the most of jobs with AIs would face incredible risk (not only financial risk, but also pressure from the society), so such replacing process will be conducted moderately. 

Therefore, I do not expect we would enter a complete AI era in the coming decade.

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