Automation and artificial intelligence (AI) are transforming the world of work, bringing many benefits such as higher productivity, improved corporate performance, and new prosperity. However, they also pose significant challenges for workers, as some skills will become obsolete and some jobs will be displaced by machines. According to a report by McKinsey & Company, more than 100 million workers in Europe and the United States might need to find a different occupation by 2030 due to automation and AI.
In this article, we will look at some of the sectors and occupations that are most likely to be affected by automation and AI in the near future, based on the analysis of the Bureau of Labor Statistics and McKinsey & Company. We will also discuss some of the skills that will be in high demand in the new era of automation and AI.
Sectors and occupations at risk of automation
The impact of automation and AI on different sectors and occupations will vary depending on the nature of the work and the level of human skills required. Some sectors, such as manufacturing, transportation, and retail, are more susceptible to automation than others, such as education, health care, and professional services. Within each sector, some occupations are more vulnerable than others, depending on the degree of routine, physical, and manual tasks involved.
According to the Bureau of Labor Statistics, some of the occupations that are projected to decline the most from 2019 to 2029 due to automation are:
- Office and administrative support occupations: These occupations include clerks, receptionists, secretaries, data entry workers, and bookkeeping workers. They involve a lot of routine tasks that can be easily automated by software or robots. For example, chatbots can handle customer inquiries, voice recognition can transcribe documents, and online platforms can process payments. The Bureau of Labor Statistics estimates that these occupations will decline by 4.1 percent from 2019 to 2029, losing about 959,700 jobs.
- Production occupations: These occupations include machinists, welders, assemblers, inspectors, and operators. They involve a lot of physical and manual tasks that can be performed by robots or machines. For example, industrial robots can assemble parts, 3D printers can create products, and sensors can monitor quality. The Bureau of Labor Statistics estimates that these occupations will decline by 4 percent from 2019 to 2029, losing about 423,200 jobs.
- Sales and related occupations: These occupations include cashiers, salespersons, agents, and representatives. They involve a lot of customer interaction and transaction processing that can be replaced by e-commerce platforms or self-service kiosks. For example, online shopping can offer more convenience and variety than physical stores, self-checkout machines can reduce waiting time and labor costs, and smart contracts can facilitate agreements. The Bureau of Labor Statistics estimates that these occupations will decline by 3.5 percent from 2019 to 2029, losing about 459,800 jobs.
Skills in demand in the new era of automation and AI
While automation and AI will reduce the need for some skills, they will also increase the demand for others. According to McKinsey & Company, some of the skills that will grow the most from 2016 to 2030 are:
- Technological skills: These skills include advanced IT and programming skills as well as basic digital skills. They are essential for developing, adapting, and using automation and AI technologies in various domains. For example, advanced IT and programming skills are needed for creating software applications or algorithms that can perform complex tasks or solve problems. Basic digital skills are needed for using digital devices or platforms that can facilitate communication or collaboration. McKinsey & Company estimates that these skills will increase by 55 percent in Europe and by 60 percent in the United States from 2016 to 2030.
- Social and emotional skills: These skills include creativity, critical thinking, communication, collaboration, leadership, empathy, and emotional intelligence. They are important for working with people or machines in diverse and dynamic situations. For example, creativity is needed for generating new ideas or solutions that cannot be automated or replicated by machines. Critical thinking is needed for evaluating information or arguments that may be biased or misleading by automation or AI. Communication is needed for expressing oneself clearly or persuasively to different audiences or mediums. Collaboration is needed for working effectively with others who may have different backgrounds or perspectives. Leadership is needed for inspiring or motivating others to achieve common goals or overcome challenges. Empathy is needed for understanding or relating to the feelings or needs of others who may be affected by automation or AI. Emotional intelligence is needed for managing one's own emotions or influencing the emotions of others in various contexts or scenarios. McKinsey & Company estimates that these skills will increase by 24 percent in Europe and by 26 percent in the United States from 2016 to 2030.
Conclusion
Automation and AI are changing the landscape of work, creating new opportunities and challenges for workers, employers, and society. Some sectors and occupations will face a higher risk of automation than others, requiring workers to reskill or transition to new roles. Some skills will become more valuable than others, requiring workers to upskill or acquire new competencies. To prepare for the future of work, workers need to be flexible, adaptable, and lifelong learners. Employers need to be supportive, innovative, and inclusive. Society needs to be resilient, collaborative, and equitable. Together, we can harness the potential of automation and AI to create a better world for everyone.
