AI and Human Workers: AI Wins for Now

July 17, 2024

When it come to US employment news, an Australian paper does not beat around the bush. Citing a recent survey from the Federal Reserve Bank of Richmond, The Sydney Morning Herald reports, “Nearly Half of US Firms Using AI Say Goal Is to Cut Staffing Costs.” Gee, what a surprise. Writer Brian Delk summarizes:

“In a survey conducted earlier this month of firms using AI since early 2022 in the Richmond, Virginia region, 45 per cent said they were automating tasks to reduce staffing and labor costs. The survey also found that almost all the firms are using automation technology to increase output. ‘CFOs say their firms are tapping AI to automate a host of tasks, from paying suppliers, invoicing, procurement, financial reporting, and optimizing facilities utilization,’ said Duke finance professor John Graham, academic director of the survey of 450 financial executives. ‘This is on top of companies using ChatGPT to generate creative ideas and to draft job descriptions, contracts, marketing plans, and press releases.’ The report stated that over the past year almost 60 per cent of companies surveyed have ‘have implemented software, equipment, or technology to automate tasks previously completed by employees.’ ‘These companies indicate that they use automation to increase product quality (58 per cent of firms), increase output (49 per cent), reduce labor costs (47 per cent), and substitute for workers (33 per cent).’”

Delk points to the Federal Reserve Bank of Dallas for a bit of comfort. Its data shows the impact of AI on employment has been minimal at the nearly 40% of Texas firms using AI. For now. Also, the Richmond survey found manufacturing firms to be more likely (53%) to adopt AI than those in the service sector (43%). One wonders whether that will even out once the uncanny valley has been traversed. Either way, it seems businesses are getting more comfortable replacing human workers with cheaper, more subservient AI tools.

Cynthia Murrell, July 17, 2024

Written by Stephen E. Arnold · Filed Under AI, Business strategy, Financial, News

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Stephen E. Arnold monitors search, content processing, text mining and related topics from his high-tech nerve center in rural Kentucky. He tries to winnow the goose feathers from the giblets. He works with colleagues worldwide to make this Web log useful to those who want to go "beyond search". Contact him at sa [at] arnoldit.com. His Web site with additional information about search is arnoldit.com.