Generative AI is poised to significantly impact job roles and industries, with a notable shift towards augmenting or automating higher-wage occupations and knowledge-based work, contrasting with previous automation waves.
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we've looked at how gen of AI may be
useful to your work and also talked
about analyzing its impact on a business
let's now zoom out and take a look at
its impact on job rades across different
companies as well as its impact on
different industry sectors the results
from this video may be less directly
actionable for a particular business but
maybe this will help you to think
through and try to forecast some of the
large macro changes that may take place
over time let's dive in a study by alund
and others at openi and the University
of Pennsylvania examined how much
different job occupations are exposed to
AI augmentation or automation that study
resulted in this graph showing that
higher wage jobs tend to be more exposed
to AI augmentation or automation than
lower wage jobs in this draft which is a
slightly funny horizontal axis because
it's on the log scale we plot salaries
ranging from about 30k up to about 163k
like this and the vertical axis measures
the degree to which these jobs are
exposed to automation earlier waves of
automation tended to have lower wage
jobs more exposed because AI could do
more of the routine repetitive work so
supervised learning for example tended
to automate more of the lower wage jobs
but large language models and G AI more
broadly are exposing in this wave the
higher wage occupations so Automation
and we'll say more later this week as
well about the impact of G of AI on jobs
let's look at a second study uh due to
McKenzie which carries out an analysis
by functional role so this graph plots
different functions that tries to
estimate how much will sales be impacted
how much will marketing be impacted how
much will customer operations including
customer service be impacted the
vertical axis here shows the total
impact in terms of billions of dollars
and so the points in the upper portion
of this graph correspond to the
functional roles where the total value
of the impact will be large in terms of
total number of dollars the horizontal
axis measures the impact as a percentage
of the functional spin so customer
operations according to this study will
have a very large absolute dollar value
impact maybe around $400 billion I would
take the exact numbers not too sery
since it's are frankly loose estimates
but the total dollar value seems like it
will be larged because gen of AI is
automating or augmenting a lot of
customer service moreover as a
percentage of all the spending on
customer operations gent VI's impact
will be pretty large as well maybe
approaching 40% of the total spend on
customer operations in contrast it will
also have hundreds of billions of
dollars impact on sales but as a
percentage of the total spend on sales
it is much smaller and the McKenzie
study also estimates that these yellow
dots shown on top together might
represent 75% of the total annual impact
of G Ai and it will be a significant
impact now this isn't to say that if you
work in some of these other functions
you shouldn't pay attention to gen of AI
for example if you work in the legal
function and gender VII will impact 15
to 20% of the functional spend on legal
that's still a significant shift for the
industry even if the total spend on
lawyers on Legal Services is not nearly
as big as a total spend on sales or
marketing or software engineering and so
on but if the McKenzie study is correct
then these are some of the functional
roles across many different companies
that'll have a huge impact through
generative AI lastly let's take a look
at its estimated impact by industry
sector so McKenzie had carried a study
on the potential of AI automation with
and without gent of AI and we repotted
the McKenzie data to show the impact of
gent of AI only on automation leaving
out other forms of AI such as supervised
learning some of the sectors impacted
include educator and Workforce training
business and legal professions s
professionals and so on
and one remarkable thing about this data
is that there are sectors that were not
highly exposed to automation before
generative AI but with the rise of
generative AI is now seeing a much
greater potential of automation or
augmentation and so depending on what
sector or sectors you either work in or
work with perhaps this type of analysis
may give you a sense of what may happen
in industries that you touch as well if
you look at the top few lines on the
this graph one theme that pervades both
this as well as other studies is that it
looks like a lot of the impact of
generative AI will be on knowledge
workers meaning workers who generate
value primarily through their knowledge
including the expertise their critical
thinking and their interpersonal skills
this is in contrast to say workers that
create value mainly from performing
physical TOS rather than knowledge TOS
this wraps up our section on gent of AI
and business
there are lots of opportunities for
individuals businesses and for
society the huge impact of gender AI is
also raising questions about how gent of
AI will affect society and it's also
made some people anxious about what the
future will be like for them in the
world with these amazing AI capabilities
let's go on to the next video to examine
how AI is impacting society as well as
how we can mitigate risk and how we can
build beneficial responsible AI I'll see
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