Listen to this article 3 min
The surging popularity of artificial intelligence tools like OpenAI's ChatGPT is coinciding with severe hiring challenges and an uncertain economy that's sparking cost-cutting measures.
The confluence of those trends is leading to an obvious question: Will employers gravitate even more toward AI as a means for replacing employees and reducing expenses?
That's the plan for many managers. About 66% of managers say they would gladly replace employees with AI tools if the work was comparable, according to a survey by Beautiful.ai of 3,000 adult Americans in management positions.
But the battle over AI tools and their impact on the workforce has only started. Baruch Labunksi, CEO at SEO marketing agency Rank Secure, told The Playbook some fears over AI replacing workers are legitimate — but it will depend heavily on the industry and the job function.
“For instance, those in marketing and human resources may have concerns because AI can be automated to handle many daily tasks currently handled by humans,” Labunski said.
He said employers are looking to save money, and AI is attractive because it costs comparatively little to install and maintain it without having to pay a salary and benefits.
Labunski stressed it also gets rid of what many managers feel are the “headaches of dealing with employees.”
“The quiet-quitting trend, failing to show up for work, quitting after working a couple of months, and many daily complaints are just some of the problems employers don't have to deal with when they use AI,” he said.
He predicted AI will eventually settle in to a point where it can be its most productive and employers will still find they can't get rid of workers entirely. Much will be riding on the public's acceptance of AI and how the products sell, Labunski said.
Niki Jorgensen, director of HR service operations for human resources company Insperity, said it's not just front-line workers who could be affected by the rise of AI.
“Managers could eventually be at risk of replacement, too. The rise of AI creates much uncertainty about the future of work, which applies to managers, as well as workers. With project management software advancing, there is a possibility some businesses will eventually attempt to replace managers with AI bots,” Jorgensen said.
Given ChatGPT's explosive popularity, it's not surprising many employees are growing anxious about how AI could affect their jobs. Experts say managers should be proactive on that front.
Jorgensen had several recommendations for how managers and workers can deal with AI concerns in the short term, including:
- Managers acknowledging that AI is not yet advanced enough to replace most jobs. Even while AI has shown remarkable skills, many full-time roles require critical thinking, judgment and emotional intelligence and cannot fully be replaced by AI.
- Workers deciding to pick up new skills to help stay relevant in their industry. If they are concerned about AI, workers can pick up more technical skills, build stronger relationships or ask for additional responsibilities at work, Jorgensen said.
- Addressing the topic of AI specifically in the workplace. Managers should not be afraid of talking about AI, and workers need to know what their manager is thinking.
“Rather than focusing on future uncertainty, professionals should instead embrace the possibilities that AI brings, including efficiency and productivity," Jorgensen said.
Still, many managers are looking at AI with an eye on cost reductions.
About 69% of managers say it would financially benefit their business to replace employees with AI tools, according to Beautiful AI's survey. Additionally, about 75% of managers believe implementing AI tools will eventually lead to layoffs.
Of course, many companies have already replaced employee functions with AI tools.
A survey of 1,000 U.S. business leaders in February by Resumebuilder.com found about 25% of companies said ChatGPT has already saved them $75,000 or more.
The biggest use for ChatGPT is for writing code, while 58% use it for copywriting and content creation, and 57% use it for customer support.
Many are also using it for hiring, such as writing job descriptions or responding to applicants — although experts warn companies should be careful about using AI for HR functions because of potential legal landmines.
About 33% of respondents said they would definitely lay off workers by the end of 2023 in favor of AI tools.
“Since this new technology is just ramping up in the workplace, workers need to surely be thinking of how it may affect the responsibilities of their current job,” said ResumeBuilder.com Chief Career Advisor Stacie Haller.
While AI tools and products have been around for years, the surging popularity of OpenAI's ChatGPT, which was among the fastest platforms to reach 100 million users, has sparked a new rush for AI products and services.
OpenAI also recently released an upgrade version of ChatGPT that appears more capable and creative than its predecessor. But while there is plenty of potential for small-business owners to enhance their productivity, reduce costs and increase revenue, experts say there are plenty of risks.
Meanwhile, the FTC is warning businesses against making outrageous claims regarding the use of AI.
Want more stories like this? To stay up to date on the news and information to grow your business, sign up for The Playbook newsletter here.
