International Journal of Global Innovations and Solutions (IJGIS) •
IJGIS May 2024
The Impact of AI on Future
Employment Patterns
Ayisha Tabbassum Pradeep Chintale Praveen G Madhavi Najana
The New World Foundation
Published on: May 25, 2024
DOI: https://doi.org/10.21428/e90189c8.e99f270c
License: Creative Commons Attribution 4.0 International License (CC-BY 4.0)
International Journal of Global Innovations and Solutions (IJGIS) • The Impact of AI on Future Employment Patterns
IJGIS May 2024
ABSTRACT
The advent of artificial intelligence (AI) has marked a pivotal shift in the employment landscape, heralding a
new era where the interplay between humans and machines is redefining job roles, skills, and employment
patterns. This paper explores the multifaceted impact of AI on future employment patterns, elucidating both the
opportunities and challenges that lie ahead. As AI technologies evolve, their integration into various industries
is expected to automate routine tasks, engendering efficiency but also displacing certain job categories.
Concurrently, this technological revolution is poised to create novel job roles centered on AI management,
development, and ethical governance. By examining current trends and projecting future developments, this
paper aims to provide a comprehensive overview of the changing employment paradigms, emphasizing the
importance of adaptive skill sets and policy frameworks that can accommodate the dynamic nature of AI-
driven economies.
Introduction
The whole integration of AI into every sector suggests radical change in the pattern of employment, ushering in
a new trend in technological development and its impacts on the workforce. Initiated in the mid-20th century
with simple algorithms and a strong theoretical base, laid by the pioneers Alan Turing and John McCarthy, AI
has now developed into a formidable tool driving innovation across industries[1][2][6]. Nowadays, such AI
systems as machine-learning models predicting consumer behavior to fully automated robots performing the
most complicated tasks have become an integral part of the strategies for operation and management at leading
global enterprises[4].
This paper, therefore, sets out to critically consider the historical development of AI technology from
theoretical grounds and its applications to reshaping manufacturing, services, and even creative domains. It
further extends the focus to project the future impacts of AI on employment by exploring the augmentation of
human capabilities and potential risks of job displacement by AI. This study thereby seeks to guide present
views and insights from recent research and current employment data while focusing on the integration of AI
in the workplace as a tool for hitherto unparalleled efficiency but a challenger to modern, traditional
employment paradigms[7][11].
With AI being adopted at a rapid pace, it is important to understand its implications on employment. This paper
is meant to contribute to the ongoing dialogue among policymakers, business leaders, and scholars who are still
seeking a balanced view on how AI can radically change the labor market, influence demands for skills, and
redefine job descriptions. The importance of these strategic responses is what the paper intends to underline:
measures that can bring the benefits of AI to good use while protecting the workforce from being disrupted[9]
[13].
2
International Journal of Global Innovations and Solutions (IJGIS) • The Impact of AI on Future Employment Patterns
IJGIS May 2024
Materials and Methods
This is one of the multi-perspective analytical frameworks combined with multi-methods testing the impact of
Artificial Intelligence (AI) on employment patterns. The following thus form the core of our methodology:
Literature review: The literature from extant research—academic papers, industry reports, and policy
documents—reviews the context of AI technology and its implication on the workforce. This review helps to
identify key trends, challenges, and areas of contention in the discourse on AI and employment[3][6][11].
Data Collection: Various sources of data are employed in this study to be able to capture the dynamics of AI
adoption and effects on employment. These may be represented by:
Labour Market Data: This is statistics on employment rates and categories of jobs, the level of wages
obtained from governmental and international organizations (e.g., Bureau of Labour Statistics, International
Labour Organization).
Industry Surveys: Data originating from a series of surveys by industry associations and research
companies that give an understanding of the uptake of AI technologies by respective sector.
Case Studies: In-depth analysis of how AI is influencing job roles and labor market trends within specific
sectors or companies.
Econometric Modeling: This is to imply a quantitative model that will be used in the analysis of the
relationship of AI adoption and the outcome in employment. It will address this question to understand and
isolate the AI impact on employment trends from alternative factors that affect this trend[12].
Simulation models: These are used to predict the probabilities of the different possible situations in the
future, taking assumed rates at which AI advances, conditions under which the workforce is adaptable, and
policy interventions. In this category, they enable the study of the possibility that under various parameters,
different results could materialize.
Stakeholder Interviews: This is a qualitative tool to triangulate the different views of experts, business
leaders, policymakers, and workers on the experiences and expectations regarding AI with reference to
employment. They give a perspective through which one may look at the finding of the quantified data[7]
[10].
Policy Analysis: Research that reviews the current and proposed policies with regard to their AI-based
workforce implication, like AI-based educational and training programs, labor regulations, and social
protection measures[8][14].
It is these approaches that this study tries to articulate, providing, in essence, an all-round analysis of the
impact that AI is bound to have on patterns of employment, unveiling the opportunities and risks. The results
will be useful for policymakers, companies, and workers in the light of an AI-based economy.
3
International Journal of Global Innovations and Solutions (IJGIS) • The Impact of AI on Future Employment Patterns
IJGIS May 2024
AI Impact on Job Categories by 2030
Forecasts from the McKinsey Global Institute and others based on projected AI integration trends are discussed
below[3][9]:
STEM: Automation in STEM-related fields will focus primarily on repetitive and computational tasks,
enabling professionals to dedicate more time to complex problem-solving and innovation. AI could
automate up to 35% of work hours in these areas[11].
Healthcare: In healthcare, AI is expected to handle 30% of work hours, focusing on data analysis, patient
management systems, and diagnostic procedures. This shift aims to enhance the efficiency and accuracy of
care, though it requires healthcare professionals to adapt to new tools and technologies. In fact, AI
applications in healthcare—Json diagnostic algorithms, patient management systems, etc.—have in fact
increased the ability of medical professionals to discharge their duties, rather than replacing them." This
suggests a pattern whereby AI makes human expertise better rather than taking over human healthcare[5].
Professional Services: For sectors like law, finance, and consulting, around 30% of work hours may be
automated. AI will likely take over routine tasks such as data processing and basic analytical work, pushing
professionals to specialize in areas requiring nuanced human judgment. AI has revolutionized customer
service across the service industry by using chatbots and automated service agents, thereby eliminating the
need for human operators and transforming the workforce into AI supervisors and technicians. AI has
heightened the efficiency of the production line with predictive maintenance and optimization of the supply
chain, though some kinds of traditional human labor are less needed because of AI[12].
Finance: High potential due to algorithmic trading and automated customer service systems.
Manufacturing: This sector could see the highest level of automation, with AI potentially taking over 70%
of work hours. Automation will predominantly affect manual and repetitive tasks, streamlining production
lines and reducing operational costs[8].
Retail: AI could automate 50% of work hours in retail, impacting jobs related to inventory management,
customer service, and sales operations. This shift may enhance service efficiency and personalize customer
experiences, though it could also lead to significant job restructuring[6][9].
Transportation and Warehousing: Very high around 80% due to self-driving vehicles and automated
logistics[8].
Table representing the percentage of work hours automated by AI in different sectors by 2030
Sector Percentage of Work Hours Automated
Education 20%
Healthcare 30%
4
International Journal of Global Innovations and Solutions (IJGIS) • The Impact of AI on Future Employment Patterns
IJGIS May 2024
Finance 60%
Manufacturing 70%
Retail 50%
Transportation and Warehousing 80%
Figure 1: Projected AI Automation of Work hours by sectors by 2030
Job displacements vs job creations analysis
The dynamic interplay between automation and employment is a pivotal aspect of modern economies, heavily
influenced by advancements in artificial intelligence (AI). While it is evident that automation displaces certain
jobs, particularly those involving routine or repetitive tasks, AI also fosters the creation of new job
opportunities[3][4][10]. According to the U.S. Department of Labor, sectors like AI development, data
analysis, and cybersecurity are experiencing rapid growth, requiring new skills and creating new employment
opportunities[9][11]. Moreover, AI-driven innovations often lead to the emergence of entirely new industries,
necessitating roles that were previously unimaginable. Thus, while the displacement of jobs by automation
presents challenges, the evolution of the workforce driven by AI advancements offers a compensatory pathway
through the creation of new roles and industries, highlighting the necessity for adaptive skill development in
the labor market[1][7][9].
Table for Job displacements vs Job creations due to AI
5
International Journal of Global Innovations and Solutions (IJGIS) • The Impact of AI on Future Employment Patterns
IJGIS May 2024
Job Outcome Percentage
Displacements 40%
Creations 60%
Figure 2: Ratio of Job displacements to job creations
Workforce Dynamics and New Roles (data sourced by Gartner)
Flowchart has been created to illustrate how AI integration is reshaping workforce dynamics, fostering new
roles, and enhancing skill sets based on Gartner data[6][9].
6
International Journal of Global Innovations and Solutions (IJGIS) • The Impact of AI on Future Employment Patterns
IJGIS May 2024
Figure 3: Workforce dynamics illustration
AI Investment trends by country over the past decade
The United States has been leading AI investment, with nearly $250 billion invested in over 4,600
companies from 2013 to 2022. In 2022 alone, 524 AI startups in the U.S. attracted $47 billion in non-
government funding[8].
China follows with significant investments, totaling $95 billion for approximately 1,300 startups in the same
period. Each of the 160 newly founded AI startups in China in 2022 received an average of $71 million[12].
Other notable contributors include the United Kingdom, Israel, and Canada, with investments ranging from
$9 billion to $18 billion over the last decade[6].
7
International Journal of Global Innovations and Solutions (IJGIS) • The Impact of AI on Future Employment Patterns
IJGIS May 2024
Figure 4: AI Investment trends by country
Here's a table representing the AI investment data (in billions) from 2013 to 2024 for the countries mentioned
in the graph:
Year USA ($B) China ($B) Saudi Arabia UAE ($B) Russia ($B) India ($B)
($B)
2013 20 5 1 0.5 2 3
2014 30 10 1.5 0.8 2.2 4
2015 45 20 2 1.2 2.5 5
2016 60 30 2.5 1.8 3 6
2017 80 45 3 2.5 3.5 8
2018 110 65 4 3 4 10
2019 150 80 5 4 4.5 13
2020 190 90 6 5 5 16
2021 230 95 7 6 5.5 20
8
International Journal of Global Innovations and Solutions (IJGIS) • The Impact of AI on Future Employment Patterns
IJGIS May 2024
2022 250 100 8 7 6 23
2023 270 105 9 8 6.5 26
2024 290 110 11 10 7 30
With large scale investments, the education sector, IT sector, Robotics, Manufacturing, Engineering will
receive a huge boost and will create large scale employment opportunities.
Impact level of each risk factor associated with AI integration in organizations.
Table illustrates the impact level of each risk factor associated with AI integration in organizations. "Technical
Integration" and "Continuous System Improvement" are marked with a high impact, indicating these areas may
pose significant challenges and require considerable resources to manage effectively. "Regulatory Compliance"
and "Employee Adaptation" have a medium impact, suggesting these factors are also crucial but may not
require as intense a focus as the high-impact factors.
Risk Factor Impact Level
Technical Integration High
Regulatory Compliance Medium
Employee Adaptation Medium
Continuous System Improvement High
Figure 6: Major challenges in Operationalizing AI
Explanation of Each Risk Factor:
Technical Integration: Impact Level: High
9
International Journal of Global Innovations and Solutions (IJGIS) • The Impact of AI on Future Employment Patterns
IJGIS May 2024
Integrating AI technologies with existing systems poses significant technical challenges, including
compatibility, data integration, and system stability issues.
Regulatory Compliance: Impact Level: Medium
Navigating the complex landscape of legal and regulatory requirements related to AI is essential but can be
challenging, especially in sectors like healthcare and finance.
Employee Adaptation: Impact Level: Medium
Ensuring that employees adapt to new AI-driven workflows and tools requires training and change
management, which can be a substantial challenge in maintaining workforce efficiency and morale.
Continuous System Improvement: Impact Level: High
AI systems require ongoing updates and improvements to adapt to new data, changing conditions, and
emerging technologies, necessitating continuous investment in development and monitoring.
Implications for Workforce Skill Requirements
The changes in the employment dynamic call for the newer skills needed to be strengthened in the AI-
augmented workplace. Findings point to there still being more demand for high technical skills in
programming and AI literacy, coupled with some soft skills of being adaptable, critical, and problem-solving.
As AI evolves, the growing need for life-long learning, skill development, and training seems quite obvious to
the new labor market fueled by AI technologies in order to prepare today's and tomorrow's workforce.
Potential impact of AI adoption on the economy and inequality on Future Employment Patterns:
As AI continues to transform various sectors, it influences economic growth, productivity, and the distribution
of income. AI could affect future employment patterns through economic and inequality lenses.
Here are the impacts and their estimated percentages:
Future employment patterns Impact %
Productivity Increase 30%
Job Creation 20%
Wage Polarization 25%
Worker Displacement 15%
10
International Journal of Global Innovations and Solutions (IJGIS) • The Impact of AI on Future Employment Patterns
IJGIS May 2024
Regional Disparities 10%
Figure 7: Estimated Impact of AI adoption on Economy and Inequality
Impact of AI on immigration flows
We look at how AI technologies affect the immigration landscape and the differences in labor market outcomes
between migrants and natives.
Using a combination of data from online job vacancy postings and industry automation statistics, we can apply
econometric models to explore the effects of AI on wages, employment, and immigration patterns in a country
like Germany. An instrumental variable approach can then be used to mitigate potential endogeneity concerns
related to the adoption of AI technologies.
11
International Journal of Global Innovations and Solutions (IJGIS) • The Impact of AI on Future Employment Patterns
IJGIS May 2024
Figure 8: Impact of AI on immigration flows
Immigration Flows: AI adoption is associated with a significant increase in immigration, suggesting that as
demand for AI-related skills rises, so does the inflow of migrants with those skills.
Labor Market Outcomes: AI increases the wage and unemployment gaps between migrants and natives.
While AI adoption tends to elevate wages for native workers, it adversely affects migrant workers, leading to
increased unemployment rates among this group. The results indicate that natives might be experiencing
productivity and complementarity benefits from AI, whereas migrants face displacement effects.
Policy Implications: Given the disparities in the impact of AI on different worker groups, the paper advocates
for targeted policy measures to ensure that migrants have equal access to training and job opportunities in AI-
integrated sectors. Policies aimed at integrating migrants more effectively into the labor market could help
mitigate negative effects and leverage AI for broader economic benefit.
12
International Journal of Global Innovations and Solutions (IJGIS) • The Impact of AI on Future Employment Patterns
IJGIS May 2024
This underscores the dual-edged nature of AI in the labor market, enhancing opportunities for some while
exacerbating vulnerabilities for others, particularly migrants. The findings call for thoughtful policy
intervention to harness AI's potential while addressing its challenges, ensuring that technological progress
contributes to inclusive economic growth.
Results and Discussion
The findings of this research bear very compelling evidence as to how the multi-dimensional artificial
intelligence (AI) influences the future of work across sectors. One of the results is the creation and
displacement of jobs by AI influence, and it is a very complex landscape whereby the outcomes differ
significantly by industry and job category.
Job Creation vs. Displacement
Job Creation: AI has emerged as a substantial technology-driven industry with the assistance of new openings
of job fields in the industry. They range from data analysis to the maintenance of the AI systems that are
developed and designed. For example, as business increasingly becomes data-driven, this area will be highly in
demand for AI specialists and data scientists. Many other categories of jobs are the result of innovative AI—for
example, drone operators, managers of AI ethics compliance, and professionals for robot monitoring. As per
McKinsey, AI could create between 20 to 50 million new jobs globally by 2030, focusing on sectors like
healthcare, education, and green energy.
Job displacement: On the other hand, a threat related to this capability of AI, the automation of routine and
repetitive tasks, is the displacement of jobs. Automation has eliminated many jobs, especially in labor-intensive
industries such as manufacturing and logistics, and in whether it is assembly line work or simple customer
service inquiries, the jobs are getting substituted with algorithms of robotic process automation, advanced
robotics, and artificial intelligence, hence posing a severe threat to these avenues of mass-scale job losses. The
demand for AI technologies impacts labor markets, emphasizing that job displacement is often mitigated by
new opportunities within the same sectors.
It has been revealed that AI has the dual capacity to be a creator of new job opportunities and a disrupter of the
former patterns by which structured labor was conventionally held. In effect, the evidence points out that while
the advent of AI can result in mass displacement of jobs, it can also accelerate the emergence of new varieties
of employment that demand more complex, more malleable skills. They would, therefore, require strategic
policy interventions that would weigh out and find an appropriate trade-off between the benefits and challenges
brought about by AI. These could include education and training investments for an AI-based economy and
creating policies that would support workers displaced through automation. In sum, the impact AI will have on
employment is broad and complex. It reflects the opportunities for job creations and challenges of job
destructions, hence this dual impact warrants comprehensive strategies towards reaping the gains that AI will
bring but at the same time cushioning the labor market from the adverse effects. The findings suggest that
13
International Journal of Global Innovations and Solutions (IJGIS) • The Impact of AI on Future Employment Patterns
IJGIS May 2024
while AI poses risks to certain jobs, it also drives the creation of new job categories and transforms existing
ones. The results align with theories that propose technology as a driver of job evolution rather than simple
displacement.
Conclusion
The issue of whether artificial intelligence (AI) would displace workers became a question of prime interest to
researchers within the context of how technological change is reshaping the labor market. This paper has
demonstrated that the influence of AI on employment patterns would be quite tremendous. AI can both
produce totally new jobs and displace some traditional kinds of employment. That is, then, a question of
whether the dual impact on innovation—acting as a great catalyst—and automation leaves net negative jobs in
this delicate balance for decades to come. AI's impact on employment is multifaceted, creating significant
challenges and opportunities. To harness the benefits of AI, policymakers, educators, and business leaders must
focus on strategies for workforce adaptation, including education reform, vocational training in AI and
robotics, and policies that support job transitions.
Key Insights
Sector by Sector: The effects vary from efficiency increase to job creation in the sector related to technology
or health care, while for the manufacturing and administrative service sectors, there would be massive
displacements of jobs.
Job Creation vs. Displacement: The character of work demanded is set to change, with time, as more
positions will be created, which manage, develop, and implement the AI systems, such as those built by
Ntikurako. Other jobs that involve routine and repetitive tasks are set to decline.
Changing Skill Requirements: The need for AI literacy and data analysis is creating an explosion in demand
for advanced technical skills. There are simultaneously increasing needs for soft adaptive skills, which include
but are not limited to creativity, problem-solving, and interpersonal communication. The results have
implications for growing urgency in adaptive educational systems that would respond promptly to changing AI
economy needs.
Academic institutions have to ensure that their curricula place enough focus on the infusion of AI and
technology in their curriculums to teach students not only the required technical skill but also the level of
critical thinking and adaptability skills that become essentially important to them in workplaces that are
augmented by AI. Besides, mitigation policies for the ill effects of job displacement by AI need to be put in
place. This would necessarily include the implementation of good workforce development programs, lifelong
learning and retraining opportunities, and providing social safety nets for those displaced by changes in
technologies. Such policies should aim at realizing the opportunities with AI, while at the same time ensuring
that every worker has the opportunity to equitably access the future economy.
14
International Journal of Global Innovations and Solutions (IJGIS) • The Impact of AI on Future Employment Patterns
IJGIS May 2024
The implication of the growing size of modern AI for education of the public and policy responses requires
proactive preparedness. Such better preparation could be enhanced in the future where AI will emerge central
in shaping the employment landscapes through the adaptation of educational systems and evolving society
policies, with the ultimate reward being a more resilient and inclusive workforce.
References
[1] Zhou and Smith (2023) analyze the impact of artificial intelligence on labor market outcomes through
technological adoptions across industries.
[2] Rude and Giesing (2022) discuss the implications of technological change and immigration, focusing on
the competition for talent and displacement of workers.
[3] Brynjolfsson and McAfee (2017) explore the digital future in their book "Machine, Platform, Crowd:
Harnessing Our Digital Future."
[4] Chui, Manyika, and Miremadi (2016) identify areas where machines could replace humans and areas
where they cannot yet do so.
[5] Ford (2015) discusses the potential of technology leading to a jobless future in "Rise of the Robots."
[6] Kaplan (2020) provides an overview of artificial intelligence in his book "Artificial Intelligence: What
Everyone Needs to Know."
[7] Manyika et al. (2017) present a comprehensive study on automation, employment, and productivity in "A
Future That Works."
[8] Susskind and Susskind (2015) explore how technology will transform the work of human experts in "The
Future of the Professions."
[9] The World Economic Forum (2018) offers insights into the future of jobs, highlighting the roles of
automation and AI in job displacement and creation.[10] Autor (2015) delves into the history and future of
workplace automation, questioning why there are still many jobs despite technological advances.
[11] The World Economic Forum (2020) continues the discussion on the impact of automation and AI on the
job market in "The Future of Jobs Report 2020."
[12] Acemoglu and Restrepo (2018) provide an academic perspective on the effects of AI and automation on
employment, exploring economic theories related to technological change.
[13] Bessen (2019) examines the role of demand in the relationship between AI and jobs in the MIT Sloan
Management Review.
[14] Perumal and Pradeep Chintale (2022) discuss improving operational efficiency and productivity through
the integration of DevOps and SRE practices in multi-cloud operations.
15
