Key Takeaways
1. AI growth is significantly impacting the job market, leading to concerns about job replacement for entry-level positions.
2. There has been a 32% decrease in entry-level job openings in the UK since the introduction of ChatGPT in 2022.
3. Entry-level positions are expected to shrink to 25% of the overall UK job market by 2025.
4. Major companies like Microsoft and Google are rapidly integrating AI into their operations, increasing reliance on technology.
5. Experts warn that governments need to act now to manage AI regulations and mitigate potential unemployment during this technological shift.
The rapid growth of AI in recent years is beginning to change the industrial scene in a major way. Nonetheless, experts have raised concerns that businesses will increasingly replace human labor with AI technology. For example, Dario Amodei, the CEO of Anthropic, has cautioned that AI may lead to a 50% reduction in entry-level positions within the next five years.
Job Market Shift
Amodei’s forecasts now appear to be alarmingly correct, as Adzuna, a job search platform based in the UK, has noted a significant decline in job openings for entry-level positions. According to their research, ever since ChatGPT was introduced in 2022, the UK job market has experienced a 32% decrease in new “graduate jobs, apprenticeships, internships, and junior positions that don’t require a degree,” as reported by The Guardian.
Decline in Opportunities
This fall in entry-level job vacancies is also said to have led to a shrinking of these positions to just 25% of the overall UK job market by 2025, marking a 4% drop from 2022 figures.
Adzuna’s results seem to align with findings from Indeed. The Guardian cites Indeed’s data, stating that university graduates in the UK are facing the “most challenging job market since 2018,” with “advertised roles for recent grads having decreased by 33% in mid-June compared to last year.”
The Unstoppable AI
The ongoing advancement of AI is unlikely to slow down, as companies of all sizes are quickly adapting to integrate more AI into their teams. For instance, Microsoft is already creating 20-30% of its code using AI, while Google is producing even more.
In light of this, Dario Amodei’s statement that “you can’t just step in front of the train and stop it” is quite relevant. According to Dario, the best we can do is “steer the train—steer it 10 degrees in a different direction from where it was going. That’s possible, but we need to act now.”
It is uncertain how governments globally will manage AI regulations to ensure that the temporary surge in unemployment that often accompanies the beginning of a new “Industrial Revolution” doesn’t inflict as much pain this time around.
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