How Generative AI Is Reinventing The Workplace
The onset of generative AI technology like ChatGPT and Midjourney has sparked a technological revolution that impacts the entire world. As we saw the rise of automation disrupt many blue-collar professions, the rise of artificial intelligence will similarly lead to a disruption in white-collar jobs and processes.
While the impact of current breakthroughs in artificial intelligence may seem hyperbolic, it is important not to underestimate the staying power of significant technological advancements. As an example, in 1903, a major bank president, on being enquired about investing in Ford, said, “The horse is here to stay, and the automobile is only a novelty - a fad.”
To better understand the impact of AI, consider three broad industries - information technology, management, and entertainment - and the effects generative AI has already had on such different spheres in its infancy.
Information Technology
Software engineering is known as an evergreen domain, as corporations are heavily dependent on software to function, regardless of industry. Many software engineers are already utilizing ChatGPT to write code for work, and improve existing code (in fact, this went so far that Samsung’s internal code was also leaked because engineers were too reliant on third-party AI). This may just be the beginning.
For one, OpenAI has already publicly stated that it intends ChatGPT to replace software engineers. We can see this already - with generative code quality being on-par with most mid-level engineers, and this is only expected to improve. In fact, with GPT 4.0, it is possible to convert a rough hand-drawn sketch into a fully functionable webpage. This vastly diminishes the need for dedicated front-end engineers and digital designers.
Furthermore, there is also incentive. Software engineers are among the most expensive employees - taking into account their numbers and salary in any corporation - and management would love to cut costs here. In comparison, generative AI is cheap, has fewer bugs per code-capita, and does not fall sick or want a raise. Take into account health benefits, taxes, possible attrition, etc. and it is understandable why management would want to explore replacing most software engineers with generative AI.
Management & Consulting
In the age of big data, the sheer volume of data that analysts and managers need to comb through is astonishing. Of course, we have software that processes this data and managers comprehend this output to make important decisions and formalize strategies.
Modern AI tools can go a step further - processing data and predicting macro-economic and industry forces to make decisions on-par with managers. It is estimated that 19% of business leaders already utilize AI for decision making. A study by McKinsey stated that 30% of all decisions in domains like marketing and financial strategy can be taken entirely by AI. While middle-management may need to survive to stay relevant, top executives are still safe: as high-level decisions have long term consequences, understanding the reasons and extrapolations the AI is making is crucial before executing any strategy.
Consultants may have it worse. Consulting heavy-weight Bain has stated it will incorporate ChatGPT for management consulting. Considering most generative AI can already analyze massive amounts of data and comprehend a solution, it may be the lower rungs of the corporate ladder like analysts or junior consultants (students directly picked from business schools) who may be most displaced. Furthermore, corporations may directly use generative AI as a replacement for consulting firms. It can cost up to $1.25M to hire a firm like McKinsey - it is easier and cheaper for companies (especially SMEs) to use B2B versions of generative, predictive AI solutions.
Entertainment
An often overlooked industry that many think is unaffected by AI is that of entertainment. This is far from the case: contemporary art, photography, music, and ads are being shaped intimately by AI.
The art industry specifically is heavily disrupted. The onset of generative visual AI tools like StableDiffusion and Midjourney that can create any piece of art prompted to them has sparked controversies among digital artists. In general, artists feel their services will no longer be needed with the introduction of these AIs. And they’re right. Creatively, AI-generated art is already considered to surpass human-made art. Economically, businesses will vastly prefer AI tools. Why hire an illustrator to make a piece of art or design in 2-3 days for $150 when Midjourney can make unlimited pieces in 2-3 mins for just $8 / month? The same is exactly true for photographers.
The film and advertisement industries are on the precipice of change. It is already possible to create short scripts using mostly-static images and AI-generated voices, like the Balenciaga series of memes have shown us. Similarly, generative AI can be utilized to create hyperlocal advertisements specific to individuals - taking the concept of Cadbury’s Shahrukh Khan ad to another level, segmenting and targeting using geo-location and delivering through OTTs.
Musicians have it better. While Soundraw - an AI tool that can create entire songs by itself - is receiving traffic comparable to that of an independent musician, AI is still far away from synthesizing unique voices for a hit or viral album. All current vocal AIs use famous singers as their base for training, which means commercializing them may lead to legal disputes. It seems musicians and AI will currently co-exist rather than cannibalize one another.
Conclusion
It’s important to remember that people love to panic. Many predictions made on the displacement of current professions may not come true for the next five, ten, or even twenty years. While generative AI is moving at a mile-a-minute, it is still far off from completely dislodging most jobs. By the time that happens, it is likely that those domains will have transformed and adapted to the possibility of AI replacement. Like e-commerce sites have displaced retail salespeople but created jobs in digital marketing, AI tools may displace certain job roles but create entirely new professions, such as AI prompters, trainers, or ethicists.
