How Generative AI Could Impact the Workforce

Nowadays it’s difficult to open a news site, social media platform or podcast app without hearing or seeing something on generative artificial intelligence (AI). It continues to be one of today’s most controversial topics with experts sharing concerns of hallucinations, deepfakes, data privacy, cybersecurity, copyright issues and bias.

Increased popularity in generative AI has also left many worried about the future of work. And despite the numerous ways it could positively transform many industries by allowing organizations to do more with less, there’s ongoing apprehension about what roles will inevitably become redundant and perhaps leave people out of work.

What is Generative AI?

Generative AI is a form of machine learning that can generate new content such as text, voice, video, images or code based on what it’s learning from existing data. What is most impressive is that this type of AI can create content in a way that is controlled by natural language, meaning that someone who has no specialized expertise in a subject matter can conversationally describe the desired output or outcome. For example, a novice songwriter can use generative AI to generate melodies, lyrics or even complete sections of a song.

Predictive AI	Generative AI
Mimics human logic	Mimics human creativity
Uses statistical algorithms to analyze data and make forecasts	Uses complex algorithms to produce new data and content
Lacks content creation capability	Has ability to produce original content that did not exist beforehand
Infers future events based on historical and current data	Learns combined patterns from existing data to create new and unique forms

What Does Generative AI Mean for Workers?

When we begin to think about a software platform with the ability to create customized content, it’s hard not to get excited about the possibilities. Especially when considering the ongoing global labor shortage. The list of generative AI-based platforms, like ChatGPT, OpenAI, Databricks and FotorAI, is expanding rapidly. If democratized, these tools could transform enterprise software products into “virtual assistants” that could help with everyday mundane tasks.

For example, ChatGPT can be used to develop chatbots designed to simulate conversations with end users. Talkbot technology has been around for decades; however, generative AI has taken these interactive agents to the next level and could eventually replace the role of the customer service agent. AI chatbots can do more than suggest common answers based on predetermined questions. They can provide automated and personalized responses and offer support in many different languages. An AI-powered bot can identify words from text or voice and in turn articulate intelligent responses. It’s even smart enough to provide follow-up support.

Other tasks that could easily be automated by large language models include marketing content, white papers, blog posts, social media messaging and email campaigns. Companies will also begin to use large language models to create financial reports, assess credit risk, aid in fraud detection and file many of the regular routine reports created by financial services professionals.

Predictive AI	Generative AI
Anticipate customer behavior	Accelerate innovation
Identify potential risks	Augment human workloads
Optimize operations	Enhance user experience
Inform decision-making	Solve complex problems

Generative language-based AI can even expertly create computer programming that can be used for software development. It’s been known to successfully identify errors in application development and suggest more efficient methods for coding, making it an effective teacher to help humans improve their own coding skills.

The list of jobs impacted by AI systems continues to grow. Goldman Sachs economists Joseph Briggs and Devesh Kodnani published a report stating that the advancements being made in AI technology have the potential to automate two-thirds of US occupations, replacing 25-50% of their workload. The authors stated, “Although the impact of AI on the labor market is likely to be significant, most jobs and industries are only partially exposed to automation and are thus more likely to be complemented rather than substituted by AI.”

It’s important to call out that the advancements of generative AI will not replace humans completely. In fact, the roles affected will likely be impacted in a way that will increase productivity and performance leading to greater employee satisfaction and retention.

A 2023 study published by the National Bureau of Economic Research focuses on generative AI that specifically creates content like images, audio and text. The study reviewed 5,000 customer service agents at a major software company and noted that AI assistance:

Resulted in a 13.8% increase in the number of chats that an agent at a Fortune 500 software company completed per hour
Increased the performance of less skilled and less experienced customer service agents across all productivity metrics
Positively impacted the customer service agents’ interactions with customers as measured by the sentiments recorded in the conversations

The researchers concluded, “Our overall findings demonstrate that generative AI working alongside humans can have a significant positive impact on the productivity and retention of individual workers.”

Policies and Laws for Regulating AI

In response to the myriad of concerns that can result from the use of AI, there’s been a request for greater governance as well as a desire for legislation to address the use of these technologies.

On June 14, the European Union (EU) passed a draft law called the AI Act, which is the first attempt in regulating artificial intelligence. The goal of this legislation is to ensure AI platforms in the EU are safe, transparent, traceable, non-discriminatory and environmentally friendly. Additionally, Parliament wants to establish a uniform definition for AI so that it can be applied to future AI technology.

As the first major law of its kind, the AI Act will likely influence other laws that are established around the globe. And while the EU’s approach may act as a blueprint, it could be fundamentally different from developing regulations in other jurisdictions. This means that companies could be faced with navigating many different AI laws across the various regions where they do business.

Lawmakers Around the Globe Are Under Increasing Pressure to Police AI

Canada

Canadian Parliament is debating The Artificial Intelligence and Data Act (AIDA), which focuses on risk mitigation and transparency and is intended to coordinate AI laws across its 10 provinces.

China

In July 2023, China issued new rules for generative AI content services, covering all types of information generated by AI, such as text, pictures, audio and video.

Singapore

In November 2019, Singapore launched its National AI Strategy with a vision and roadmap for developing and deploying AI solutions in industry sectors like healthcare, education and transport.

India

This year, India drafted policies to coordinate several existing laws to regulate the use of AI under the Digital India Act which will include:

The frameworks set in the Digital Personal Data Protection Bill to protect digital users from misuse of personal information on digital platforms
Enforcement of key policies in the National Data Governance Framework Policy to ensure heightened security and privacy on sharing nonpersonal information for research and innovation
Establishment of adjudicatory mechanisms to criminalize cybercrimes and other online crimes on social media and other emerging technology platforms

United States

The US government is working to develop regulations at the federal, state and city levels. The Algorithmic Accountability Act is presently being debated in Congress. This law requires the Federal Trade Commission to create regulations providing structured guidelines for assessment and reporting. New York City is spearheading Local Law 144 which focuses on automated employment decision tools that are used for human resource tasks and initiatives.

Other countries like Australia, France, Ireland, Italy, Japan and Spain are moving toward regulatory actions and are currently seeking input on regulations, planning regulations and/or investigating possible breaches.

Using Generative AI in the Workplace

As AI continues to progress, individuals will continue to identify opportunities for how to use AI at work to drive efficiency. For the foreseeable future, corporate governance will need to be a priority for business leaders to ensure the appropriate rules, practices and processes are in place to direct and control employees when using this technology.

Conversely, some workers may approach AI with distrust, and therefore, organizations should make sure the proper steps are taken to promote compliance and help people feel comfortable using it. Education and change management will play a critical role in employee adoption should an organization decide to incorporate generative AI into business processes.

Exploring Generative AI in the Future of Work

Join us for a look into the evolution of generative AI, considerations for AI in the world of work, and how advances in technology can drive human-centered opportunities and outcomes.