The transformative impact of AI and its implications on the future workforce

Written by Dave Wallace
4th August 2023

Peering into the not-too-distant future, it is within the realms of possibility to predict that one of the outcomes of the AI revolution is that workers in financial services may have much more time on their hands.

The AI revolution is well and truly underway across a number of industries

Machines have already transformed manufacturing, with the move to automation resulting in the loss of jobs on factory floors worldwide. Millions of people have been displaced, resulting in systemic economic and societal problems.

The relationship between this and modern politics is a subject of ongoing research and debate. Some observers argue that economic displacement and dissatisfaction resulting from automation (and globalisation) have contributed to political shifts and populism in countries like the US and UK; manifest as anti-establishment sentiment, anti-immigration stances and calls for protectionist economic policies.

Machines are now transforming the service industries. After analysing 200,000 jobs across 29 countries, PwC concluded that automation has currently impacted around 3% of jobs, which will rise to 30% by the mid-2030s. The firm has identified three waves.

The first, algorithmic, is impacting sectors such as financial services, where algorithms lead to faster and more efficient analysis and assessments.

The next is augmentation, which is heavily focused on the service industries, where AI is used to support and upskill workers, improving output and productivity.

The final is automation, which will primarily impact the travel and transport sector through self-driving autonomous vehicles.

Each wave will likely see more and more workers being displaced across various industries.

On the other side of the coin, AI is having a truly transformative and beneficial impact on how many firms operate and do business.

The algorithmic revolution is well underway and is making incredible changes to how companies use data to make decisions, optimise operations and provide input for products and services.

Augmentation is already starting to increase productivity. For example, admin is a time assassin. It is constantly taking focus away from achieving the raison d’etre of a job. A report from Accenture found that relationship managers spend up to two-thirds of their time on non-revenue generating activities, including administrative tasks. Much of this admin can already be handled by AI. Other reports have indicated that it might be as much as 70%.

For those in the workforce who learn to work with and embrace AI-based tools and services, the benefit will be to supercharge their jobs. This likely means that the brightest and best in a business are highly motivated and super productive, which can only benefit their organisation.

However, there will be those that refuse or cannot adapt to this change.

According to PwC’s research, the final wave of automation will result in mass unemployment as self-driving vehicles usurp workers in the travel and transport sector.

As people drop out of the workforce, what will happen? Sam Altman, founder of OpenAI, also appears to be pondering this. He recently announced the launch of Worldcoin, which aims to create a global identity verification system using iris-scanning technology and blockchain. Users can scan their irises using basketball-sized metal computers called “Orbs” and receive a unique “World ID” in return. This World ID can be used to verify one’s identity across various online platforms.

Worldcoin’s ultimate goal is to create the world’s most extensive identity and financial public network, allowing companies to separate humans from AI bots on the internet. It envisions a future where websites offer a “Sign in with Worldcoin” option alongside traditional login methods like Facebook or Google.

Interestingly, the company also envisions implementing universal basic income (UBI) using its cryptocurrency. It proposes compensating users who contribute their biometric data with a share of their cryptocurrency, which could act as a baseline income.

However, Worldcoin’s approach has sparked scepticism and concerns about privacy and data security, and the collection of biometric data raises questions about potential misuse and surveillance.

So far, more than two million people have had their irises scanned. They are targeting billions. The more people sign up, the more robust and effective its network and verification system can be.

This notion of a UBI is fascinating. If, and it is a big if, Worldcoin is successful, it could be significant competition to traditional services. If you think crypto has had its moment in the sun, it might be time to think again!

About the author

Dave Wallace is a user experience and marketing professional who has spent the last 30 years helping financial services companies design, launch and evolve digital customer experiences.