The World Economic Forum has published a report based on surveys of over 800 companies, stating that as the economy weakens and companies increasingly adopt technologies like artificial intelligence, the global job market will experience significant disruptions in the next five years.
According to the World Economic Forum, which hosts a yearly gathering of global leaders in Davos, Switzerland, employers anticipate generating 69 million fresh job opportunities and eliminating 83 million positions by 2027. This would result in a net loss of 14 million jobs, equivalent to 2% of the current employment.
During this period, numerous factors will contribute to the volatility of the labor market. The transition to renewable energy systems will be a strong driving force for creating new job opportunities, while sluggish economic expansion and elevated inflation rates will result in job losses.
Moreover, the rapid implementation of artificial intelligence will act as a double-edged sword. On one hand, companies will require new employees to assist in the implementation and maintenance of AI tools.
On the other hand, according to the World Economic Forum, the employment of data analysts and scientists, machine learning experts, and cybersecurity professionals is expected to increase by an average of 30% by 2027.
Meanwhile, the widespread use of artificial intelligence will jeopardize numerous positions as machines replace humans in certain instances. The World Economic Forum predicted that there could be a decline of 26 million record-keeping and administrative roles by 2027, with data entry clerks and executive secretaries experiencing the most significant losses.
Despite the recent hype surrounding tools like ChatGPT, automation has progressed gradually in the early part of this decade. According to organizations surveyed by WEF, machines currently perform 34% of all business-related tasks, which is slightly higher than the figure from 2020.
Expectations for the rate of future adoption have also been lowered. In 2020, employers anticipated that 47% of tasks would be automated by 2025. They now project that number to increase to 42% by 2027.
In the interim, companies are reconsidering the necessary skills for their employees. According to the World Economic Forum, firms now place a higher value on “the ability to efficiently use AI tools” than computer programming.
