The heat of AI investment and the costs in the field
AI funding and growth numbers are updated significantly every quarter. Singapore recorded 5.4% growth on the back of AI demand, with AI drug discovery partnerships worth up to $1.2 billion signed. Meanwhile, employment remains uncertain after Publicis promised to cut manual labor by 25%, and a grandmother who sued over facial recognition errors is seeking $10 million. The speed at which funds are raised and the speed at which affected people learn of the burden are not at the same time. Below, read the scale of the numbers alongside the strain it is already placing on the field, on individuals, and on safety measures. The extent to which the effects of introduction should be recognized cannot be determined until we consider who will be responsible for allocating the costs and responsibilities.
Publicis has set a goal of reducing manual labor by 25% through AI, but the impact on employment reportedly remains unclear (Storyboard18). The numbers show a reduction in workload, not a reduction in headcount. However, once a quarter of the manual labor is eliminated, it has not yet been decided whether the same people will use that time to do other work, or whether the number of people will be revised. If you try to figure out how many people will be reduced by looking only at the target value, you will easily make mistakes in your judgment.
Even with the same introduction, trends in the field are starting to diverge. It has been reported that HSBC and Kroger are increasing the number of layoffs due to AI, and the cost comparison with retraining is being discussed (AICERTs). While retrenchment lowers short-term labor costs, retraining requires training costs and time. Which one is cheaper depends on the scope of the work being replaced and whether the remaining staff can take on the new work. When readers look at their companies and workplaces, they need to look not just at the amount of cuts, but also at the cost of reskilling and who will be responsible after the cuts are made.
The direction of change is somewhat different in the job fields for new graduates. The Economic Times reports that the job categories for new graduates are changing due to the trend of placing more emphasis on AI skills, and that the number of new hires in India's IT and BPM fields is recovering. It is easy to imagine that if introductory manual work is transferred to AI, jobs for new employees will be lost first, but the fact that there are cases of hiring returning shows that some companies are allocating funds toward training human resources who can handle AI. Here, how AI literacy is developed is a variable that determines the impact on employment.
