AI Threatens High-Paying Jobs, OpenAI Study Reveals

Ever since generative artificial intelligence made its grand debut last November, the future for white-collar workers has been shrouded in uncertainty. OpenAI, the mastermind behind ChatGPT, suggests that high-paying jobs are at the greatest risk with the advent of this new AI wave. They predict that an individual earning a six-figure salary is approximately three times more likely to be affected than someone earning $30,000. McKinsey, a global management consulting firm, warns about the potential for these models to automate the application of specialized knowledge.

It’s easy to dismiss these forecasts as mere conjecture. For many, centuries of human history have fostered a false sense of security that automation primarily affects jobs other than their own. However, for some, the fear of AI replacing white-collar jobs is already becoming a reality.

An insightful study conducted by US researchers this summer revealed that following the launch of ChatGPT, copywriters and graphic designers on major online freelancing platforms experienced a significant decrease in job opportunities and a substantial dip in earnings. This implies that generative AI is not only taking their work but also depreciating the value of the work they still manage to secure. Interestingly, the study found that freelancers who previously had the highest earnings and completed the most jobs were just as likely to experience a decline in employment and earnings as other workers. In essence, possessing more skills did not provide any protection against job or income loss.

However, the online freelancing market only represents a specific segment of white-collar work and labor market. What about the impact on higher-ranking knowledge workers? A recent intriguing study by Harvard Business School provides some insights. The study examined the effects of providing GPT-4, OpenAI’s latest and most advanced AI tool, to employees at Boston Consulting Group (BCG).

BCG staff who were randomly assigned to use GPT-4 for various consulting tasks were significantly more productive than their colleagues who didn’t have access to the tool. AI-assisted consultants completed tasks 25 per cent faster and accomplished 12 per cent more tasks overall. Moreover, their work was rated 40 per cent higher in quality than their unassisted counterparts. Employees across the skills spectrum benefited, but the biggest performance improvements were seen among the less highly skilled workers. This is logical because large language models, like AI text generators, are excellent at summarizing and regurgitating existing human knowledge. The closer one’s knowledge aligns with this limit, the smaller the benefit derived from using them.

However, there was a caveat. AI-assisted consultants performed poorly on a more complex task that required analyzing quantitative data after thoroughly reading qualitative materials. GPT-4 missed the subtleties. But two groups of participants defied this trend. The first group, dubbed “cyborgs” by the authors, seamlessly integrated with the AI, continuously shaping, verifying, and refining its responses. The second group, known as “centaurs,” divided labor, delegating more AI-compatible subtasks while concentrating on their areas of expertise.

The studies collectively reveal three key insights. Firstly, regulation is crucial. Online freelancing represents one of the least regulated labor markets. Without safeguards, even knowledge workers are vulnerable. Secondly, roles with multiple facets are less likely to be completely automated. The gig-worker model, which involves performing a single task for multiple clients – like copywriting or logo design – is particularly vulnerable. Lastly, to maximize the benefits of these AI tools and avoid their pitfalls, they should be treated as an extension of ourselves, with their outputs checked as we would our own.

In conclusion, generative AI is a double-edged sword for white-collar workers. It’s prudent to approach it with caution, but it also presents an opportunity for a symbiotic relationship. The latest AI news & AI tools like AI images generator and AI video generator are reshaping the landscape of work, and it’s up to us to adapt and thrive in this new reality.