The SHOCKING Statistics Surrounding AI Job Loss

So in this video I'm going to be covering all of the major statistics regarding AI development because I do believe that this video is going to be important regarding how much AI development there is impacting the workforce. This is one of the videos for Post AGI Economics. So hopefully you find this video valuable, helping you to understand how the workforce is evolving and moving rapidly with AI. So let's take a look at everything that is going on. So by 2025, 2 million workers in manufacturing could be replaced by automated tools. And this is due to a report by MIT Boston University. And it says that most of these automated tools are robots, not strictly AI. But some of these jobs lost will be replaced with new AI tools. By 2030, 14% of global employees, the global workforce will have been forced to change their career because of AI. So this is 375 million workers. And this is due to a study done by McKinsey. Now I do wonder if that study is going to be updated with the advent of AGI. Does it take into account artificial general intelligence? Because whilst now of course it only seems like people on Twitter and people heavy into the AI space consider it as a real possibility, but I'm wondering if it is something that is considered as as a part of their study. It also says that one in four CEOs expect generative AI to lead the job cuts of 5% or more in 2024. So PwC surveyed 4,702 CEOs from 105 countries about the potential job losses resulting from generative AI tools. And only a minority of them surprisingly believed that generative AI would lead to significant job cuts. But that small figure could still represent tens of thousands of jobs across various organizations and countries. Now I think this one right here is because they've done 4,000 CEOs across 105 countries. And I think one of the things that people still forget is that not every company is a tech company in America. There are so many companies that are like steel and mining and gas, that just do stuff in the old fashioned way. So I am wondering if that is what accounts for a lot of those roles to where they think that AI is not going to have an impact. But like I said before, I do wonder if this is going to change with the advent of humanoid robotics and of course artificial general intelligence. So of course these videos are going to be like a time capsule. You can see here, 75% of CEOs think generative AI will significantly change their businesses within the next three years. A large majority of business leaders polled by PwC foresaw the need for training new skills and improving cybersecurity protocols and a host of other changes, all due to the introduction and adoption of generative AI. We also had 80% of the US workforce could have at least 10% of their tasks impacted by large language models. Now, interestingly enough here it states that this is 80% of the workforce and this is 10% of their tasks impacted by LLMs. Now, two things to note. It says impacted, which doesn't mean that this is a negative impact. It just means that your work is going to be changed in some way or, or altered in some way. It could be for the best, it could be for the worst, which is why it just says impacted. Now of course it says practically every job involves some tasks that are vulnerable to being automated by AI and only a small minority of workers are completely unexposed to AI. Now it also states here that more than 7.5 million data entry jobs will be lost by 2027. This is something that I've got as vulnerable on my, as you can see on my AI job impact tracker. I've put data entry and administrative tasks, data science, I've put it high and I've put the tool, of course ChatGPT. There's also a new tool called AutoGrid AI and I've put this as the susceptibility, if I can pronounce the word as quite high because of course you know, this is going to be a job that is of course quite high. So this is something that I've already managed to track. And of course it says here this represents the largest predicted job loss of any any profession. The professionals that are predicted to lose the most jobs that are just extremely vulnerable to AI. Data entry clerks was first, administrative secretaries was second and accounting was third and actually used some of these models to do some accounting recently. And surprisingly it was effective, it was fast and it was really, really good. So don't think that that is not coming for accounting, although there are some still needs for human accountants for various different things. For example, consulting on different tax. Those are going to be some things that you need to do, especially considering some AIs, like I said before, they're out of date. The cutoff knowledge is not always up to date. And of course sometimes if they hallucinate on your accounting, you're going to be completely screwed. So yeah, it's always still best to keep a human in the loop. Of course it says here 44% of companies who plan to use AI think it will cause layoffs in 2024. However, just 21% of companies said AI would definitely cause layoffs in 2024, and the other 23% were less certain. It says 47% of US workers are at risk of losing their jobs to automation over the coming decade. This was a report by cepr, and in this case, automation also includes non AI tools like robots. Now, interestingly enough, it says that it will take 20 years to automate just half of current worldwide tasks. While the potential economic gains from automation are great, they are a difficult potential to fully realize. And various barriers prevent widespread adoption of automation tools. And these barriers, which can't be legal, which can be legal, political and sociological and technological, or something else entirely, may make it take decades to come. Basically what they're saying here is that certain professions are just going to bar AI because they just don't want them in the field. That's completely understandable, like lawyers, doctors, I think, pilots. Those industries where you've had to spend a really long time getting your degree and entering that industry. It's, it's going to take quite some time for AI to penetrate the industry because number one, nobody really wants it. And number two, there's all of these laws and legislations that you're going to have to update to ensure that it's actually effective. And in some industries, I remember someone was recently sharing the fact that the actual failure rate of certain Boeing parts is like 0.000008%, which is remarkably insane, which just goes to show how safe airplanes are. But the point is that AI systems hallucinate at 95% or something like that. So in industries where you really can't afford to make any kind of mistakes, it's going to be a long time before they manage to penetrate those industries. And yeah, 23.5% of US companies have replaced workers with ChatGPT, which is rather surprising. And it says, according to a resume builder survey Of a thousand US business leaders, 49% companies have already adopted ChatGPT. And of those companies, 48% have has said that the tool has replaced AI workers. Now one thing that I want to get into here is that when we actually take a look at this stuff, it's easy to say, oh, people are predicting this. They're predicting that this many jobs were lost. That has happened. But one thing that we don't talk about is the fact that there are so many things that are just not going to be created because of AI. If you remember one of the things that Tyler Perry did was he put his $800 million studio expansion on hold after seeing the OpenAI Sora and was basically like, look, okay, I, I was going to spend, I just hate the, like a billion different ads on these websites, like, please. But you know, he was like, you know, this $800 million, you know, studio expansion is going to go crazy. And then, wait a minute, Sora's coming? Okay, I'm not going to invest $800 million, which is a remarkable number of jobs that would have been there that have been lost. So it's always important to remember that whilst yes, you can talk about how this job is lost and that job is lost, a lot of jobs, you know, are just never going to be created and a lot of products are just never going to be created because of course, AI is going to be something that just completely removes the growth from certain industries. In May 2023, 3,900 US job losses were directly linked to AI. Those 3,900 jobs represented 5% of total jobs lost that month. And in turn, that made AI the seventh largest job eliminator in the United States. We also have some more statistics here. Of course, it says 90% of workers are employed in jobs that are the most exposed to AI. And to calculate which jobs were most exposed to AI, researchers at Pew Research Research ranked professions based on how much workers relied on tasks that could be fully automated. The top 25% of jobs when ranked in this way were considered most exposed to AI. Interestingly enough, 27% of workers with a bachelor's degree or higher are employed in jobs most exposed to AI. So it seems insane that people who have worked hard, got a degree are now facing the short end of the stick when it comes to automation, as workers with higher levels of education attainment were more likely to be employed in professions considered most exposed to AI achieved. Just 3% of workers with less than high school degrees worked in jobs most exposed to AI. So this is like insane. Like when you hear people saying that the middle class is being squeezed, I mean, you can completely understand why. Funnily enough, right here you can see that workers in jobs considered most exposed to AI earned a little bit more than those who were in jobs least exposed to AI. We also had the stat that employers think that 42% of tasks will fully be automated by 2027. I'm wondering if this is related to AGI. And what was interesting is that they said this represents a 5 point decrease from their 2020 prediction. So this more conservative estimate could reflect doubts about whether AI tools will continue improving at the pace that they have over the last few years. But of course, as you know, AI progress is not slowing down anytime soon. 65% of tasks related to data processing and information could be fully automated by 2027. I 100% agree with this, because if we've seen anything about data processing and information, it's that ChatGPT can already do a lot. The there are already specialized tools that can already do so much, and there are literally specialized softwares being built to do a lot of this stuff. So this is going to be really interesting to see how the data entry field manages to change over the next three years. It also states that over the next three years, 120 million workers will undergo retraining due to AI changing business demands. Retraining is one of the major barriers to widespread adoption of AI tools. It represents a significant cost burden to any employer to considering embracing AI. Nevertheless, tens of millions of workers will be retrained either to use AI tools or to perform new tasks after old ones are automated by AI. One of the things that most people don't know is that there's still so much out there that you can do with AI. Like, I wish I could cover absolutely everything, but there is so much that you can do and so much opportunity in the AI field in order to make money just teaching people AI. Because there are just like literally 10 tools released every day that are actually good you can actually use. And I mean, I can't imagine the amount of companies and industries that are going to be impacted by AI over the next coming years. You can also see here an interesting stat was that it said only 34% of organizations are reskilling their employees to work with new AI tools. And that's despite the fact that limited skills is the largest barrier faced by enterprises attempting to deploy those AI tools. And according to IBM's research, 20% of the companies don't have employees with the right skills to use new AI tools. And 16% are unable to find new hires to fill this skill gap. You can see here that it also says where AI is being adopted. Larger organizations are twice as likely than smaller enterprises to embrace AI. And adopting AI actually does come with significant costs that only larger organizations can absorb. So of course, these are the organizations that are likely to absorb AI, absorb these AI tools and use them. And 75% of organizations are likely to adopt AI by 2027. So for those of you thinking that this might not be coming to your workplace if you do anything on a computer, 75% chance that this is likely to be adopted. Now, if you enjoy this community, you want more up to date stats. Don't forget to check out the post AGI Preparedness where I have my entire database of jobs that are currently being impacted by AI. And I've also made a new database of the new opportunities and the new jobs that are being created by generative AI. When I tell you there are so many new things that you didn't even think about, it's always worth it to come. Check it out. If you don't want to join, that's completely fine, but this is just a shameless plug to the community that I'm currently running with over 250 members. Hopefully you guys enjoyed the video, found some value, leave some comments, let me know exactly what you guys.