The Future of Work: The Rise of Tech

By now, we all have heard that tech will steal our jobs, but how is that true?

The rise of technology and its impact on the future of work is undeniably crucial, yet it remains a mystery waiting to be unraveled. Things are definitely changing, but at what pace? And who’s really benefiting?

Speaking from personal experience, I’ve ridden this wave—at least a little bit. After graduating in Psychology back in 2018, my first paid internship was at a tech company, where my goal was to hire tech talent(lots of them). Since then, I’ve built tech teams from scratch at a major Latin American startup and later at one of the largest tech companies in the world. I have to say, it was quite a journey. From sourcing software developers to data analysts, sometimes the demand was for 100 senior analysts per month, spanning from Argentina to Mexico. I’ve interviewed countless engineers, and I can’t tell you how many times I heard, "Thanks, but I already have a better offer." It made me wonder if I should learn coding myself, but as we say here in Brazil, não é muito a minha praia ⛱️ (not really my thing). But let’s get into some concrete facts.

The rise of AI and technology is a known phenomenon that has been growing rapidly for decades. We also know that in order to keep up the pace of this new tech we need an evolving talent pool equipped to tackle new, larger, and more complex challenges. How talent will adapt to this shift remains a significant challenge for all of us—and likely a key skill for the future. According to Ajayi and Udeh (2024), emerging technologies are reshaping the skills landscape, requiring a workforce that is not only technically proficient but also adaptable and committed to continuous learning. So we are not only talking about hard skills but also the almost always forgotten "soft skills".

This necessitates are not only for employees, but also for the employers. Institutions need to become more adaptable, and develop strategies to educate and keep their workforce up-to-date. This shift may also lead to a trend toward more flexible work contracts and evolving work relationships, such as the increase in contractors or short-term contracts. The possibilities are numerous, but one thing is certain: change is on the horizon.

Workforce upskilling, defined as the process of teaching current employees new and advanced skills, is pivotal for the sustainable growth of the IT sector. (Ajayi and Udeh, 2024).

According to Bobitan (2024), employees must enhance their skills to remain competitive in the AI era and secure their jobs. Key skills include data analysis, digital proficiency, advanced thinking abilities, decision-making, and a commitment to ongoing learning. A significant shift towards successful human-AI collaboration could drive company growth by focusing on enhancing both technological and cognitive skills, emphasizing the complementarity rather than competition between humans and AI.

The integration of tech and artificial intelligence into business organizations not only transforms work paradigms but also redefines the essential skill requirements for employees, underscoring the need for adaptability and continuous learning. Research by Babina et al. (2024) shows that AI investments contribute to overall employment growth, particularly benefiting individuals with higher education levels and advanced IT skills.

Foresight analysis is an essential tool for anticipating potential future developments and their impacts. It operates on the premise that, although the future is inherently uncertain, it can be envisioned and strategically prepared for. According to Bobitan (2024), the scenario method provides a systematic approach to exploring various plausible future scenarios related to the evolution of skills required by the widespread adoption of AI in business contexts.

The figure above illustrates one of several scenarios examined in this article. Anyone working in tech, human resources, or talent acquisition could greatly benefit from this analysis. However, this scenario represents one of the more "soft" approaches to understanding environmental changes, where AI integration occurs gradually, allowing people time to adapt. Unsurprisingly, upskilling emerges as a key strategy to navigate these changes.

At the macroeconomic level, workforce development through upskilling initiatives is pivotal for sustaining economic growth and competitiveness in the global marketplace. As noted by Goldin and Katz (2009), the alignment of educational attainment and skill development with the demands of the knowledge economy is essential for maintaining low unemployment rates and fostering innovation. By investing in upskilling, nations can ensure a resilient workforce capable of adapting to technological changes, thereby enhancing productivity and driving economic prosperity. (Ajayi and Udeh, 2024).

So far, we’ve mainly discussed upskilling and fostering enthusiasm for careers in this sector. However, recent studies indicate that while AI will indeed create new jobs, but it will also lead to job displacement. This balance will vary by industry and role, potentially influencing societal trends such as immigration.

Tabbassum (2024) highlights that AI adoption is linked to a notable increase in immigration, suggesting that as demand for AI-related skills grows, so does the influx of migrants with these skills. Given the varying impacts of AI across different worker groups, the study advocates for targeted policy measures to ensure that migrants have equal access to training and job opportunities in AI-integrated sectors. Policies aimed at better integrating migrants into the labor market could help mitigate adverse effects and harness AI for broader economic benefits.

As you can see, this is a vast and complex topic that could fill a book rather than just a LinkedIn article 😂. To rapidly conclude, it’s crucial for policymakers, educators, and business leaders to focus on strategies for workforce adaptation. This includes education reform, vocational training in AI and robotics, and policies that support job transitions. These efforts will be essential in maximizing the benefits of AI and ensuring a smooth transition for the workforce (migrants and natives).

References:

AJAYI, Funmilayo Aribidesi; UDEH, Chioma Ann. Review of Workforce Upskilling Initiatives for Emerging Technologies in IT. Foresight, [S.l.], v. 29, n. 2, p. 123-145, 2024.

BOBITAN, Nicolae et al. Shaping Tomorrow: Anticipating Skills Requirements Based on the Integration of Artificial Intelligence in Business Organizations—A Foresight Analysis Using the Scenario Method.+

TABBASSUM, Ayisha; CHINTALE, Pradeep; G, Praveen; NAJANA, Madhavi. The Impact of AI on Future Employment Patterns. Foresight, [S.l.], v. 28, n. 3, p. 345-367, 2024.