the health strategist . institute
research and strategy institute
for in-person health strategy
and digital health strategy
Joaquim Cardoso MSc
Chief Researcher and Strategy Officer (CRSO)
for “the health strategy” — research unit
Chief Editor for“the health strategy” — knowledge portal
Senior Advisor — for “the health strategy” — advisory consulting
July 12, 2023
This is an Executive Summary of the article “OECD says rich economies on cusp of AI ‘revolution’”, published by the Financial Times’
AI Revolution and Job Losses:
- The OECD predicts that the widespread adoption of generative AI in the workplace will lead to significant job losses and ethical concerns.
- The rapid development and increasing affordability of generative AI suggest that rich economies may be on the brink of a fundamental transformation in the workplace.
Risks to Highly-Skilled Occupations:
- Occupations most at risk are highly-skilled, white-collar jobs, accounting for approximately 27% of employment across OECD member economies.
- Fields such as finance, medicine, and law are particularly vulnerable.
- Italy, Germany, and France have a higher share of at-risk occupations, while the UK and the US have a relatively lower share.
Potential Benefits and Growth:
- Generative AI could lead to productivity gains and higher job satisfaction.
- Goldman Sachs estimates that global output could increase by 7% over 10 years due to the adoption of generative AI.
- However, the technology may also disrupt around 300 million jobs, according to the investment bank.
Ethical Challenges:
- The use of AI raises significant ethical concerns related to data protection, privacy, transparency, bias and discrimination, automatic decision-making, and accountability.
- Examples of AI hiring tools with inherent biases and algorithmic management intensifying work stress exist.
Coordinated Action and Risk Mitigation:
- The OECD emphasizes the urgent need for coordinated action to ensure that the benefits of AI outweigh the risks.
- Members are encouraged to respond collectively to avoid a “race to the bottom” and develop strategies to address the disruptive impact of AI on labor markets.
Conclusion:
- The OECD’s warning highlights the potential transformative impact of AI on job markets.
- While generative AI presents opportunities for productivity gains, it also poses risks to highly-skilled occupations.
- Addressing ethical concerns and fostering coordinated action among OECD members are crucial to mitigate negative consequences and ensure a balance between technological advancements and workforce well-being.
