Generative AI is confirming its presence and the way it can impact the future of employment, especially among young people. The potential to cause a seismic shift in the labor market is imminent. Especially at a time when Spain has managed to reduce its youth unemployment rate to 23.5%, according to the most recent Eurostat data, corresponding to August. This marks its lowest level since 2008. The threat of artificial intelligence is on the horizon, as an analysis by the Federal Reserve Bank of New York points out.
Who are the first to feel this threat from AI?
To begin with, it must be said that in Spain, this is not yet strongly felt, but experts do not believe that this will be an exception. A few years ago, potential victims were identified as both the most experienced workers, who would have the greatest difficulty adapting to the technological revolution and who perform more technical tasks, and those who earn their living in positions with different qualifications, who were going to be directly automated, either by software or a robot. All this is due to a change in vision regarding the business market. What few expected was that the first victims would be those young, albeit highly qualified, professionals who see their professional careers thwarted by an algorithm.
The United States, the mirror in which Spain sees itself
Well, speaking of data, the New York Federal Reserve’s analysis shows that more than 90% of companies haven’t seen benefits from investing in AI, so they’ve chosen to put this aside and focus their attention on more experienced profiles and smaller teams. The situation in the United States and Spain is different. In the United States, it’s no longer just a matter of predictions, as the technology is much more advanced and established in the productive fabric, and data shows that the unemployment rate among recent college graduates has risen in the last year to a level not seen in a long time. There’s a debate among American economists about whether this can be attributed to artificial intelligence.
In any case, specifically, according to experts, we could soon see an unemployment crisis among recent graduates, because most of those entering the labor market perform routine data analysis tasks, which AI can already perform better. According to data from the Federal Reserve, the careers that have seen the greatest increases in unemployment are the sectors that, in theory, will benefit most from new technology, i.e., IT, software, development, etc.
In Spain, for example, some companies, such as Hays, claim they’re no longer looking for talent and are opting for profiles that know how to manage AI with strategic objectives. In other words, it seems the way forward is to work directly with AI and hire AI experts who know how to get the most out of this technological monster.
And the data on this topic continues to be alarming. One of the latest reports from MIT (Massachusetts Institute of Technology) says that nearly $30 to $40 billion has been invested in AI, and “95% of organizations have seen no return.” These data are interesting because they show how, despite being able to purchase the technology, if it’s not used correctly, it’s truly worthless. According to the same study, until now, the focus was on hiring professionals who would create new AI teams that would increase revenue, whereas now the situation is shifting toward more exhaustive spending controls. AI has been sold and advertised very well, but the methodology needs to be refined, and that’s where humans come in.
