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AI Risk · Generative AI
Worker Displacement
Widespread use of generative AI cause organizations to eliminate jobs.
📋 Description
Organizations may choose to rely on generative AI systems to complete tasks that would ordinarily have been assigned to full-time employees, potentially using AI instead of hiring new workers. This can include a wide variety of roles, from entry-level positions to potentially managerial roles, though the nature and extent of the displacement vary. Whilst AI may replace some roles entirely, such as those that are routine/repetitive and as such may be automated, some may simply be augmented. More junior employees are more likely to be impacted by widespread AI adoption, as senior-level work may be more difficult to automate. However, all roles may be impacted as employees may be required to cover a broader range of tasks with the help of AI.
AI-related job losses may raise both legal and ethical concerns. Former employees may file lawsuits against previous employers if they are part of a protected class and an AI system has replaced them. Additionally, employers may be subject to actions from worker advocacy groups, such as unions, or heightened scrutiny from regulators.
🔍 Public Examples and Common Patterns
- Duolingo has chosen to replace contract workers with AI as they commit to being an 'AI-first' company.
- Dukaan, a Bangalore-based e-commerce company, replaced 90% of customer support staff with an in-house chatbot.
