Despite the strike in Hollywood, the studios are all in on AI and showing preference to employing technology more than hiring human workers. Doubt me? Netflix recently posted an AI Product Manager job that pays as much as $900,000.00. The striking Hollywood workers were not pleased to hear that. To quote The Intercept…
“So $900k/yr per soldier in their godless AI army when that amount of earnings could qualify thirty-five actors and their families for SAG-AFTRA health insurance is just ghoulish,” actor Rob Delaney, who had a lead role in the “Black Mirror” episode, told The Intercept. “Having been poor and rich in this business, I can assure you there’s enough money to go around; it’s just about priorities.”
What’s going on in Hollywood is just one instance in a growing trend. Suumit Shah, CEO of Dukaan, fired 90 percent of his company’s customer support staff after arguing that an AI chatbot had outperformed them.
“Suumit Shah, a 31-year-old CEO of an e-commerce platform called Dukaan based in India, is getting torn to shreds online for firing 90 percent of the company’s customer support staff after arguing that an AI chatbot had outperformed them.”https://t.co/LnLoVkxXAl
— Jim Stroud (@jimstroud) July 31, 2023
Another example, Insider laid off 10% of its staff a week after they made a pivot towards AI. Futurism reported on this, saying…
Just a week after urging its writers to incorporate AI tools like ChatGPT into their workflow, Insider has laid off 10 percent of its staff.
“As you know, our industry has been under significant pressure for more than a year. The economic headwinds that have hurt many of our clients and partners are also affecting us,” Insider president Barbara Peng wrote in an email to staff sent this morning.
“Unfortunately, to keep our company healthy and competitive, we need to reduce the size of our team,” Peng continued, adding that “the reduction would affect about 10 percent” of the publication’s workforce.
One more sample of how things are going is evident in Waymo. Although they are slowing down their autonomous trucking program, they are moving forward with an automated taxi fleet, thus putting Uber and Lyft drivers on notice.
Yikes!
That general feeling of technophobia you may be feeling is something American workers have felt before. The cycle tends to be 1) a transformative technology debuts, 2) it is greeted with a mix of wonder and fear, 3) old jobs are replaced by new occupations, and 4) people adapt and progress forward. It’s happened time and time again; most notably…
- Industrial Revolution (late 18th to early 19th century): The mechanization of industries during the Industrial Revolution led to the displacement of many artisanal and agrarian jobs, while creating new opportunities in manufacturing and urban centers.
- Computer Revolution (mid-20th century): The advent of computers and the digital revolution changed how work was done, leading to the automation of various tasks, particularly in administrative roles and data processing.
- Internet and E-Commerce (late 20th to early 21st century): The rise of the internet and e-commerce disrupted traditional retail and supply chain industries, impacting brick-and-mortar stores and creating new opportunities in online retail and tech-related roles.
- Robotics and Automation (late 20th to early 21st century): The integration of robotics and automation in manufacturing has led to job displacement in some industries but also created new roles in robotics programming and maintenance.
All that being said, what’s happening today with artificial intelligence feels kind of… different. The speed of change happening with AI feels dizzying and overall, people have mixed feelings about it. A survey conducted by Ipsos in April 2023 found that 71% of respondents expressed concern about the impact of AI on jobs and society. The Ipsos survey also revealed that the views on AI are mixed, with nearly the same share of Americans viewing AI favorably (39%) as unfavorably (43%). The overwhelming majority of Americans – more than eight in 10 – agree that AI and/or robots should be carefully managed according to research from the Center of Governance of AI. The same research body found that more Americans support than oppose developing AI although said support was cited as being greater among those who are wealthy, educated, male, or have experience with technology.
So, what does this mean for society overall? What happens when a large percentage of workers are displaced by AI at the same time? I can imagine a couple of things happening, the government steps in and slows down the commercial adoption of AI or we start seeing a proliferation of social safety nets. Actually, I think both will happen, especially since I am already seeing signs of both. As far as the government slowing down commercial adoption, I see it happening (somewhat) with regulation. Take for example the “No Robot Bosses Act” in Congress. It is a proposed legislation that aims to regulate the use of automated decision systems throughout the employment life cycle. The bill would bar employers from relying solely on automated systems like algorithms and machine learning to make decisions about hiring, firing, or managing employees. The key provisions of the No Robot Bosses Act include:
- Pre-deployment and periodic testing and validation: This is to prevent unlawful biases in automated decision systems.
- Operational training: This is to ensure that employees are trained to use automated decision systems effectively.
- Mandate independent, human oversight before using outputs: This is to ensure that there is human oversight before decisions made by automated decision systems are implemented.
- Require timely disclosures of use, data inputs and outputs, and employee rights with respect to the decisions: This is to ensure that employees are aware of how automated decision systems are being used and how they can challenge decisions made by these systems.
The No Robot Bosses Act, if passed into law, would have an impact on small businesses. This is highly significant as 99.9% of all US businesses are small businesses and they may all face additional costs associated with complying with the requirements of the No Robot Bosses Act. This could include expenses related to pre-deployment testing and validation of automated decision systems, operational training for employees, and ensuring independent human oversight before implementing decisions made by automated systems. As of August 1, 2023, the No Robot Bosses Act is proposed legislation that has been introduced in the Senate by Senator Bob Casey and is in the early stages of the legislative process. (I’m not an expert on legislation, but it sounds to me a lot like Local Law 144, a NY law that calls for 3rd party auditing of AI tools used in hiring workers.) But I digress.
Regulation may slow down (a little bit) the encroachment of AI tools displacing workers. The question is, will it slow things down fast enough for American workers to catch up? There are some programs currently in place to help that along. For example, the American AI Initiative announced by President Trump is aimed at retraining workers who are at risk of losing their jobs to AI and the US trade program known as Trade Adjustment Assistance provides benefits and support to workers who have lost their jobs due to foreign trade competition. While not specifically targeted at AI-related job displacement, it can potentially assist workers affected by technological advancements.
While I recognize the benefit of government intervention in this case, I think there is an additional option for consideration. Perhaps companies that are innovating with AI can create jobs faster than they displace workers? Is that possible? Yes, in fact, it happened more than once before. A few examples…
- Automobile Industry (early 20th century): The introduction of the automobile led to job displacement in the horse-drawn carriage industry and related sectors. However, the growth of the automobile industry itself created a vast number of new jobs, such as assembly line workers, mechanics, and auto salespeople.
- Information Technology Revolution (late 20th century): The widespread adoption of computers and information technology disrupted some traditional job roles, but it also led to the creation of new jobs in software development, IT support, data analysis, and other technology-related fields.
- Renewable Energy Sector (ongoing): The growth of the renewable energy sector, such as solar and wind energy, has created jobs in installation, maintenance, research, and development, offsetting some job displacement in traditional fossil fuel industries.
How could this translate into opportunities related to AI? Well, best case scenario, AI adoption can lead to the emergence of entirely new industries, creating job opportunities that were not previously envisioned. For example, AI-driven technologies might give rise to new fields like AI ethics consulting, AI software development, and AI-related research. The adoption of AI by companies can lead to a demand for supporting industries, such as AI hardware manufacturing, AI consulting firms, and AI data annotation services, which can create new jobs. And my personal favorite, AI technologies lower barriers to entry for startups, allowing entrepreneurs to create new businesses and ventures that generate jobs.
To sum it all up, the rapid advancement of AI is undoubtedly reshaping the job market and raising legitimate concerns about job displacement. The recent examples of AI’s impact on industries like Hollywood and tech companies undergoing layoffs highlight the urgency to address the challenges posed by this world-changing technology. While history has shown that technological advancements can create new opportunities, the unique speed and scale of AI’s impact require proactive measures. Government intervention through regulations and retraining programs can mitigate potential negative consequences, while companies that embrace AI innovation have the potential to create new jobs and foster emerging fields. By carefully navigating these interesting times, society can harness AI’s potential for positive change while ensuring a future of work everyone can appreciate.
