When was the last time you used artificial intelligence? Maybe it was asking a chatbot for a recipe suggestion, or even to plan your schedule for the day. Chances are that you have already used AI today. Even world leaders are turning to AI when it comes to assisting them; the Swedish prime minister has said that he often consults ChatGPT or LeChat for second opinions on policy questions (2,8,12). As AI becomes one of the major changes shaping our lives, legislators are quick to respond.

In an effort to become a frontrunner in the sector, the United States recently implemented regulations that have given way to the AI industry by enabling them to work freely with few guardrails (10). The European Union (EU), however, has decided to take a safer approach by implementing the “AI act”, a law aimed at enabling responsible AI development by imposing strict rules on applications that could significantly impact people’s fundamental rights and safety (4,5,19). These high-risk systems include AI used in employment.

As AI is making its way into the workplace, the environment and conditions of work change. The influence is already visible; the jobs that we currently do are undergoing a transformation. For every 10 professionals, at least one holds a job title that did not exist in 2000 (3).

With new occupations entering the workforce, the tasks and skills required for work change as well (1,9,15,16,17). These challenges create many new opportunities but also give rise to much uncertainty for workers. A survey conducted in the United Kingdom revealed that already half of employees are worried about the impact of AI on their jobs (15). This article aims to explore the effects of AI on jobs and the skills required to carry them out.

Displacement of jobs

A large part of the public debate around AI focuses on the fear of potential job and wage losses (3,9, 14, 15). Several big firms, such as Amazon and Microsoft, have already cut employees, citing AI as a contributing factor (14).

As AI is highly effective at handling routine tasks, jobs that are primarily repetitive and predictable, such as managing spreadsheets, handling customer service questions, and scheduling calendars are most vulnerable to automation. However, its reach is now also gaining ground when it comes to non-routine tasks (1). Jobs that were once recognized as a subject requiring high-skill human judgment, are now also increasingly operated by algorithms. Not all jobs will survive this transition, and for many workers, this is an unsettling thought. Many finance and manufacturing employees already reported that AI had automated tasks they previously performed themselves (9). The takeaway: workers will increasingly need to move to roles where they can use creativity, judgement, and adaptability.

Not all jobs, however, face a high risk of being replaced. These positions include chief executives, pharmacists, and residential advisors (6). And, in many instances, the implementation of AI does not replace a worker, but rather assists them with repetitive tasks such as sending emails, freeing up time for more interesting tasks. This is the paradox of AI: for some people, it is a threat, for others an opportunity that can make work more exciting or even create work for them.

While some jobs remain vulnerable, AI also creates job opportunities. Particularly in roles involving AI governance and technology oversight. Companies are hiring machine learning engineers, data scientists, and prompt engineers, but also increasingly look for AI trust and safety professionals who ensure that their systems are transparent and accountable (3,16,17). With the right training and government policy, these new roles could absorb part of the job loss caused by automation.

Skills are changing

The rise of new jobs, and shifts in the labour market as a result of artificial intelligence redefine the skills employers seek. Companies are adjusting their vacancies accordingly, and the abilities needed for work are expected to change by as much as 70 per cent by 2030 (3). This means that workers cannot rely on their current credentials. Learning has become essential in order to remain relevant.

This shift is already visible; traditional hiring is losing ground, with diploma requirements for AI-intensive jobs falling significantly from 2019 to 2024 as firms increasingly value skills rather than a specific degree (16). Simultaneously, demand for specialised AI expertise is growing, with two-thirds of businesses planning to hire professionals with knowledge on machine learning, data analysis, and AI programming in the coming years (11,17). Currently, 5% of vacancies in the Netherlands already ask for at least one AI-related skill (16). The trend is clear, AI-related knowledge becomes a competitive advantage.

However, AI expertise is only part of the picture. Employers also prioritise technical skills such as digital literacy alongside human qualities that complement AI such as leadership and relationship-building (3,17). These complementary skill requirements are expected to rise in importance in the near future. In sum, the job market of the future requires technical skills and human qualities that AI cannot replicate.

For employees, these changes mean constantly adapting to a new environment. Already half of workers at over 1,000 leading global employers are improving their skillset; an 8% increase compared to two years ago. However, a gap remains between workers' experience and executives’ views on skill development; only a quarter of employees are satisfied with the training opportunities available to them, while more than half of executives believe they provide enough (3).

With the expectation that skills requirements for work will significantly evolve by 2030, the impact is substantial. Seven in ten executives report that the pace of change in the workplace is accelerating, and six in ten business leaders expect AI to transform their organisations. It is important that employers understand that this evolving environment requires skilled workers. If businesses underestimate the scale of reskilling required, they may find themselves with highly capable technology but a workforce not well prepared to use them. Something that is equally important for the adoption and implementation of AI (3,9). The takeaway is simple, investing in people is just as important as investing in technologies.

How IKEA reskilled 8,500 people

A successful example of a company reskilling their workers is IKEA. In 2021, they introduced a chatbot called Billie that, in the following two years, effectively took over 47 per cent of customer service queries. The AI is highly capable at answering routine questions such as checking an order status and reporting missing or damaged items. This resulted in 8,500 employees being displaced from their customer service job.

IKEA could have saved a lot of money by simply getting rid of all these employees, but instead of cutting their workforce, they educated their workers on interior design and opened up a completely new line of business; remote interior design advice. At the end of the financial year of 2022, this new line of business already resulted in a stunning $1.4 billion in revenue for the company, accounting for 3.3 per cent of all sales. IKEA aims to increase this to 10 per cent in the coming years. This shows technology does not have to compete with humans, rather, it can be used to open up new profitable opportunities.

More recently, IKEA also committed to upskilling their employees. Their goal is to educate half of their workforce, approximately 70,000 people, on AI tools and literacy by 2026. By 2027 they aim to have all employees trained. The efficiency gains these trainings bring about can potentially be used to free up new employees to enter other lines of business, similar to the interior design case. In a race for efficiency, IKEA plans to leave no one behind, equipping their employees with the right knowledge needed for a sustainable career (7,18,19).

Why this matters

The case of IKEA is a good example of how reskilling can be a strategic advantage. While replacing employees with AI might seem like the most immediate cost effective option, retaining these employees and training them in a new line of business appears more profitable in the long run.

Without proper guidance, AI is at risk of displacing the workforce, leaving workers without proper knowledge and skills needed to perform the jobs of the future. However, with investment in training, and policy aimed at human-technology cooperation, AI could be something that leads to efficiency gains, opens up new opportunities for profit, and strengthens the role of humans in the future of work. Shall we?

This article is part of The Outside World, ftrprf’s very own research center.

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