AI and Job Wage Friction
April 1, 2024
This essay is the work of a dumb dinobaby. No smart software required.
I read again “The Jobs Being Replaced by AI – An Analysis of 5M Freelancing Jobs,” published in February 2024 by Bloomberg (the outfit interested in fiddled firmware on motherboards). The main idea in the report is that AI boosted a number of freelance jobs. What are the jobs where AI has not (as yet) added friction to the money making process. Here’s the list of jobs NOT impeded by smart software:
Accounting
Backend development
Graphics design
Market research
Sales
Video editing and production
Web design
Web development
Other sources suggest that “Accounting” may be targeted by an AI-powered efficiency expert. I want to watch how this profession navigates the smart software in what is often a repetitive series of eye glazing steps.
Thanks, MSFT Copilot. How are doing doing with your reorganization? Running smoothly? Yeah. Smoothly.
Now to the meat of the report: What professions or jobs were the MOST affected by AI. From the cited write up, these are:
Customer service (the exciting, long suffering discipline of chatbots)
Social media marketing
Translation
Writing
The write up includes another telling chunk of data. AI has apparently had an impact on the amount of money some customers were willing to pay freelancers or gig workers. The jobs finding greater billing friction are:
Backend development
Market research
Sales
Translation
Video editing and production
Web development
Writing
The article contains quite a bit of related information. Please, consult the original for a number of almost unreadable graphics and tabular data. I do want to offer several observations:
- One consequence of AI, if the data in this report are close enough for horseshoes, is that smart software drives down what customers will pay for a wide range of human centric services. You don’t lose your job; you just get a taste of Victorian sweat shop management thinking
- Once smart software is perceived as reasonably capable, demand and pay for good enough translation, smart software is embraced. My view is that translation services are likely to be a harbinger of how AI will affect other jobs. AI does not have to be great; it just has to be perceived as okay. Then. Bang. Hasta la vista human translators except for certain specialized functions.
- Data like the information in the Bloomberg article provide a handy road map for AI developers. The jobs least affected by AI become targets for entrepreneurs who find that low-hanging fruit like translation have been picked. (Accountants, I surmise, should not relax to much.)
Net net: The wage suppression angle and the incremental adoption of AI followed by quick adoption are important ideas to consider when analyzing the economic ripples of AI.
Stephen E Arnold, April 1, 2024
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