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Fewer than a quarter of firms report AI has led to job losses

Head outline in blue with circuits
(Image credit: Gerd Altmann from Pixabay)

In the majority of cases, the introduction of artificial intelligence (AI) to the tech stack does not lead to net job losses. This is according to a new research published by academics at the University of Warwick and the University of Sussex.

Based on a survey of roughly 750 AI-enabled businesses, the report states that less than a quarter of firms believe AI has led to net job losses since it was introduced. A similar proportion said AI had actually created additional jobs, while more than half said there was no overall change.

Compared to any other technology, however, AI has a significant effect on job numbers. The introduction of AI is said to be 28.4% more likely to be linked to job creation, and 26.6% more likely to be linked to job destruction.

“While we can’t say for sure how many jobs will be created or destroyed, it is likely that the automation of some tasks may mean fewer people are needed to perform some jobs but that increased productivity may reduce costs stimulating sales and demand for workers overall,” said Dr Wil Hunt, Research Fellow at the University of Sussex Business School. 

“This of course is likely to depend upon the specific AI technology used and what employers hope to achieve by using it."

The report authors also suggest that previous research on the topic has tended to be flawed, because it has been based on “what if” scenarios, as opposed to factoring in the economic, social and cultural factors influencing a firm’s new tech adoption rate.

Sead Fadilpašić

Sead is a freelance journalist with more than 15 years of experience in writing various types of content, from blogs, whitepapers, and reviews to ebooks, and many more, across sites including Al Jazeera Balkans, TechRadar Pro, IT Pro Portal, and CryptoNews.