Introduction
The rise of AI has triggered concerns about job security, particularly among engineers. In 2023-2024, the fear of automation replacing human jobs has intensified as AI technologies become more advanced. A report by NASSCOM highlights that 69% of Indian engineers feel threatened by AI advancements mostly because of the fear related to job replacement. While sectors like IT and software development are most vulnerable, others like manufacturing and data analytics also face significant impacts.
In India, where the engineering workforce exceeds 4 million, automation could result in major job shifts resulting in a change in workplace scenarios. Although AI promises efficiency, the potential for AI job loss has engineers grappling with an uncertain future, making it a critical issue for the workforce to address. This blog will discuss the impact of AI on jobs and the type of jobs that are most likely to be affected thereby providing a solution to deal with these new changes.
How much will AI affect the job market?
Which sectors will be most affected according to projections?
It has been found that AI has impacted both the present and the future job market not just in India but around the world. Studies show that many employees or students entering the job market are at risk due to AI tools and techniques.
India produces over 1.5 million engineers, but fewer than 2,000 senior engineers capable of developing core AI products.
Most engineers in India need to be trained properly with modern technologies. Additionally, top institutes like the IITs and NITs are facing issues with giving students placements.
The sectors and job roles that are most negatively impacted by AI are discussed below:
- Entry-level legal work – A survey revealed that 36% of lawyers have used a generative AI tool, either for personal or professional purposes.
- Retail – Cashiers and retail assistants may see fewer opportunities as AI streamlines checkout and inventory management. The impact of AI on jobs in this sector will likely reduce the demand for human workers.
- Finance – Roles in banking, accounting, and insurance, particularly those that are repetitive, could be reduced.
- Customer Service – Call center and front-desk jobs could decline significantly as AI-powered automated solutions and chatbots increasingly take over routine tasks.
Even though there are many negative sides of AI on jobs, yet there are significant positive sides to the impact of AI on jobs with some recent data below:
Distribution of AI Jobs (Source: Analyticsdimag)
AI is projected to impact the Indian job market across various sectors significantly. The economic survey of 2023-2024 suggests that the BFSI (Banking, financial services, and Insurance) sector is more influenced by AI services followed by industrial/manufacturing and pharma/life science. As a result, the number of jobs in this field significantly increased.
Here are some key highlights from the chart:
- The AI job openings for 2024 is in BFSI. These jobs are based on professionals having 2-5 years of experience (34%) and 5-7 years of experience (25%). This indicates a strong demand for individuals having mid-level and highly experienced roles in any specific field.
- AI job openings favor graduates with technical backgrounds by 44%, followed by non-technical backgrounds by 21%. More than 63% of AI job openings are in foreign multinational corporations, apart from the domestic market of India.
- Depending on individual background, experience, and market demand, salary brackets for AI jobs in BFSI, Manufacturing, Pharma, Media, etc. usually range from 3-6 LPA (25% higher) for entry-level jobs. However, mid-level associates or job roles have salary brackets of 6-10 LPA (33% higher) than other job roles. The highest salary bracket for this job role is as high as 75 LPA.
Another study showed that India is focusing heavily on renewable energy, aiming for 500 GW by 2030. Other than that, the green energy sector is projected to add 3.7 million jobs by FY 2024-25 due to the rise of solar and environmental health. India’s GDP is expected to grow between 6-7.1% from 2024 to 2026. However, the service sector might slow due to global demand fluctuations (PwC).
Which types of jobs will be impacted (entry-level, mid-level, etc.)?
The impact of AI on jobs will affect various levels of employment, but entry-level and routine mid-level jobs are expected to face the most significant changes. Research shows that 49% of hiring managers are cutting back on jobs with the promising trend of AI.
According to the Upwork Research Institute, recruiters are looking for candidates who are experienced in AI to help incorporate technology into systems and workflows irrespective of their job type.
1. Entry-level Jobs:
AI is likely to automate many repetitive and manual tasks. Roles such as data entry clerks, cashiers, and junior administrative assistants will see reduced demand. This shift will limit the availability of traditional entry points for young professionals or those without advanced skills.
2. Mid-level Jobs:
Some mid-level roles, especially those focused on predictable processes like customer service representatives, manufacturing supervisors, and accountants, will also face disruptions. AI systems that handle large-scale data processing or customer inquiries more efficiently will make some of these jobs redundant.
3. High-level Jobs:
Although high-level jobs are less likely to be entirely replaced by AI, there will still be an impact. Roles in decision-making and strategy may incorporate AI tools to assist professionals, requiring new skills but less risk of outright job loss.
Overall, while the impact of AI on jobs will vary by industry, entry-level and mid-level positions that involve repetitive tasks are the most vulnerable.
How many are truly prepared to handle the sudden changes?
Leaders to expand hiring with Gen AI (Source: Upwork))
From the statistics shared above, it can be seen that leaders are hiring more professionals with experience in Gen AI both as full-time employees and freelancers. So employees who are upskilling in AI will likely gain career opportunities. AI will have an impact on most roles across industries and focus areas.
According to a global report by the World Economic Forum, 44% of workers‘ core skills are projected to change within the next five years. Key organizational priorities for skills development include analytical thinking, creative problem-solving, and proficiency in AI and big data. The report also highlights that while 60% of workers will need training and reskilling by 2027, only half currently have access to sufficient training opportunities.
However, if you go by the 2023 India Skills Report, you will find that only 46% of engineering graduates are categorized as employable. This arises from major academic gaps, especially the shortage of application-based learning.
Standard engineering education often fails to adequately prepare fresh graduates for the transition into the workforce. The decline in fresher hiring within the IT sector, with major Indian IT companies delaying the onboarding of new graduates by over two years.
How to overcome the challenges?
Students can overcome these potential challenges through continuous learning:
1. Completing online courses:
Online courses have become an integral part of students nowadays for growing and developing their skills. Popular sites like Coursera, edX, Skillshare, and Udemy are known for offering various courses at affordable prices. Through these courses, students can gain expert insights leading them to gain valuable knowledge and credentials to boost their careers.
2. Gathering knowledge:
Listening to podcasts and reading books, news articles, or research papers on AI will give students good practical exposure. Also, engaging with diverse content will help to stay updated on the latest trends, technologies, and theories in AI, thereby enriching their understanding and generating new ideas.
3. Participating in professional communities:
Networking with like-minded individuals, sharing experiences, and collaborating on projects will help students to create a supportive environment that encourages growth and innovation in the field. Hence, it is recommended to join and actively participate in professional communities, or groups to enhance innovation in this field.
4. Gaining hands-on experience:
By working directly with AI technologies, students can develop their skills, troubleshoot real-world problems, and better understand the applications and limitations of AI in different contexts. Experimenting with AI tools will give students a good exposure on real-world applications and help them gain practical experience.
5. Upskilling and continuous training:
Upskilling and continuous training in AI can help professionals stay competitive, adapt to industry changes, and advance their careers. This will help them to retain a competitive edge in this rapidly changing job market. As industries are relying more on AI technologies, hence, staying updated with the latest tools and methodologies has become crucial.
Due to increasing competitiveness in the job industry, it might be difficult for many students to find the right job in the AI field. However, applying these simple tricks and techniques in their life can help them overcome the challenges and boost their employability.
Conclusion
As AI continues to evolve, engineers face growing concerns about job security in an increasingly automated landscape. The potential for job displacement is real, particularly in roles involving routine tasks. However, this technological shift also presents opportunities for upskilling and adapting to new industry demands. By embracing continuous learning and engaging with AI technologies, engineers can position themselves for success in a changing job market. Ultimately, navigating this uncertainty requires resilience and a proactive approach to career development.
FAQs
1. How might AI impact the job market in the future?
AI will transform the job market by automating repetitive tasks and creating demand for tech-focused roles in AI development, data science, and machine learning. This shift will require workers to gain new skills, especially in technology and critical thinking, to remain relevant. In such a competitive job market, it is recommended to upskill that future-proof your career. If you are looking to do the same without any financial worries, then Varthana can help you prepare for a tech-driven job market. Their hassle-free customized loans, quick disbursement policy, and flexible loan options can help you pursue any career path without worries.
2. How is AI causing job losses?
AI is leading to job losses in roles that rely heavily on repetitive or predictable tasks, such as data entry, customer service, and even some aspects of manufacturing. By performing these tasks more efficiently and at a lower cost, AI-driven systems often replace human roles, especially in industries seeking to optimize productivity.
3. What jobs are in danger of AI?
Jobs at high risk include administrative roles, data entry, and some aspects of retail, logistics, and even healthcare diagnostics. As AI grows, these tasks are increasingly automated, impacting repetitive and data-focused roles.
4. What are the problems with AI in engineering?
AI in engineering poses challenges like high implementation costs, data privacy concerns, and reduced human oversight. Additionally, engineering problems often require human intuition, which AI struggles to replicate, limiting its ability to address unique or complex engineering tasks.
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