Artificial intelligence in the labor market: opportunities and challenges for employers

Employers around the world are facing the challenge of adapting to the new reality with artificial intelligence (AI) and leveraging its possibilities.

In this article, we discuss the opportunities and challenges we see from artificial intelligence and the impact it has on the labor market.

Who is affected by AI?

'300 million jobs at risk due to automation,' alarmed the report from investment bank Goldman Sachs. And according to a study by the University of Pennsylvania, 80% of the workforce would be affected by AI. The message is clear: Artificial Intelligence (AI) is rapidly changing the world. But what exactly and for whom?

History shows that automation does lead to job loss, but not to mass unemployment. Because new jobs are created, often in other (new) professions and sectors. Research in America showed that 60% of current jobs did not exist in 1940.

Solving staff shortages by automating routine tasks

Professor Maarten Goos from Utrecht University is researching the impact of technology on the labor market. He believes that AI can help solve staff shortages in all sectors. Although it will take some getting used to. Thanks to advanced algorithms and machine learning, computers can now take over tasks from employees, such as data entry, report generation, and even some forms of customer service.

Employers can respond to this by reviewing their workforce and considering how automation can be integrated into their business processes. This can lead to the reorientation of employees towards tasks that require more human skills, such as creativity, problem-solving ability, and empathy.

Challenges of AI

Maarten Goos, Professor of Economics & Institutions at Utrecht University, indicates that there are also challenges. “Automation has created many new jobs, but the quality of these jobs lags behind. Algorithmic work in large distribution centers results in high work pressure on lower-skilled personnel. Compliance with labor laws is also under pressure. There is a clear task and responsibility for the government and regulators.”

Yet he sees more opportunities than threats from the use of AI: “Technology has historically led to a rising standard of living. For the labor market, artificial intelligence will be a game changer.”

"Technology has led to more jobs and a rising standard of living"

How can you as an employer or entrepreneur keep up with these developments?

According to Yuri van Geest, for employers, everything starts with awareness: “You have to try to see the big picture. That is difficult because developments are happening at lightning speed, much faster than the development of the internet. You still have to try to keep up, otherwise, you will fall exponentially behind. Make a plan and test it, or turn it around. I am in favor of the latter option. Start testing, experimenting, and playing with various AI techniques, standards, and parties. Begin in a place and with functions where the most profit can be gained and you run the least risks. If necessary, hire external expertise for that and then make your plan.”

How Timing deals with AI

Pim van der Hoorn, Innovation Manager at Timing: “At Timing, we continuously explore the possibilities of AI. We discover opportunities by looking at so-called user cases from available tools on one hand and by looking at usable tools from our business needs on the other. It is our ambition to make work more enjoyable and smarter for our temporary workers, clients, and own employees. We dream of an AI-driven Co-Pilot that provides support day and night to everyone who works at, for, or with us. We are not there yet, but I can share how we deal with AI through two examples.

AI vacancy text generator

Writing is not for everyone, and it is often difficult to start from a blank page. “That is why we have developed an AI vacancy text generator that helps our consultants write an attractive base,” says Pim. “We give consultants access to a form in which they can enter a number of things (such as job title, employer, location, and unique characteristics). That input is translated into a question for ChatGPT, which then writes a compelling base text. Our consultants can then use that text to personalize. This way, we ensure that we create creative, catchy vacancy texts. Even if you are not an excellent writer.”

Searching through documents

Internally, there are many documents such as collective labor agreements, work instructions, and protocols. It can be difficult to find the right answer in all those documents. AI can help with that. Pim explains: “We are experimenting with tools that search through a huge amount of information for the right answer based on a question. You can ask the tool a question via a chat function, for example, a question about a certain action in a system. The tool then searches all relevant information and chats back the answer. This way, we could potentially save a lot of time searching for information, which we can spend on work that really matters.”

Conclusion

Artificial intelligence has transformed the labor market and will continue to do so. Employers who adapt and take advantage of AI can quickly grow with it or at least work more efficiently. AI can provide good support in various sectors. We are happy to think along with you. Want to brainstorm? Feel free to contact us.