Impact of Artificial Intelligence on the Job Market
Recent studies have highlighted that approximately 91.5% of jobs within the information technology (IT) sector, including nearly 10 million positions in the European Union, may be at risk due to the rise of artificial intelligence (AI). This concern has become a focal point for policymakers as they navigate the evolving landscape of employment driven by technological advancements.
During her address regarding the new mandate from 2024 to 2029, Ursula von der Leyen, the re-elected President of the European Commission, emphasized the need for the EU to significantly increase funding for a just transition in light of the anticipated challenges faced by the labor market. This initiative aims to prepare for the shifts that AI will bring to various job sectors.
AI’s Transformative Role in IT Skills
Among the most tangible applications of AI tools like ChatGPT are their capabilities in code writing, text search, and summarization, which are essential tasks for IT professionals. A report conducted by industry experts examined how the core skills required for 47 common IT roles would evolve due to AI integration. The findings revealed that up to 70% of the necessary foundational skills in these roles could undergo significant changes.
The report indicated that 34% of these positions would be heavily impacted by AI, suggesting that more than 70% of the core skills essential for these roles would experience substantial alterations. Furthermore, 57.5% of the positions would be moderately affected, with between 50% and 70% of the required skills expected to change significantly.
Shifting Skill Requirements
As AI tools continue to advance, certain skills are projected to gain prominence, such as AI ethics, responsibility, rapid engineering, literacy, and architecture of large language models. Conversely, skills like traditional data management, content creation, documentation maintenance, basic programming, and research information may become less relevant.
The analysis estimates that AI will moderately transform all higher-level IT jobs, with a considerable number of mid-level and entry-level positions facing serious transformations. Citing research from IBM, which indicated that 87% of managers believe job roles will expand rather than be replaced by AI, the analysis stresses the significance of initiatives aimed at upskilling and reskilling workers.
Collaboration for Workforce Development
This study was conducted by a consortium focused on the workforce supported by AI, established in April through collaboration between the EU and the US via their Trade and Technology Council. Together, they are working on policies related to trade and technology, highlighting the importance of adapting the workforce to meet the demands of a changing technological environment.
