The employment landscape has continuously evolved with technological advancements, reshaping industries and altering the nature of work. Historically, technological waves have led to job displacement but have also created new opportunities and higher-paying roles. The proliferation of artificial intelligence (AI) and subsequent automation of previously manual processes may usher in similar disruptions.
The introduction of Microsoft Excel in the 1980s is a prime example of how technology can disrupt existing jobs while creating new ones. Excel automated many tasks previously performed by clerical workers, leading to job losses in those roles. However, it also created new opportunities for data analysts and financial professionals who could leverage the software’s capabilities to provide deeper insights and more strategic decision-making, ultimately creating many more roles in higher-paying careers than it displaced. The illustration below shows the introduction date of Excel, subsequent changes in employment levels in selected roles, and current salaries of the listed roles according to BLS data.
Chart courtesy of The Wall Street Journal, salary data from BLS.gov
The data shows that nearly 1 million jobs in bookkeeping roles were eliminated in the time since Excel’s introduction. Importantly, over 2.5 million new roles in knowledge jobs were created during the same time frame. The introduction of powerful software increased demand for skilled workers who could interpret data and use it to drive business success, ultimately leading to the creation of higher-paying jobs in the finance and business sectors.
More contemporary examples of industries undergoing technological transformation include the animation and graphics industry. Arguably a more disruptive shift than the introduction of Excel, the shift from hand drawn animations to computer generated (CG)-based work forced a paradigm shift across the content creation industry. But as Netflix’s co-CEO Ted Sarandos highlighted on a recent earnings call, this evolution has benefited both the companies at the forefront of the industry and those employed in the industry. Sarandos noted “[animation] got better in the move from hand drawn to CG animation. More people work in animation today than ever in history. There’s a better business and a bigger business in making content [this way].” It serves as an important reminder that if employees are looking to elevate themselves and their careers, turning to productivity and quality-enhancing software has been one of the easiest answers in recent history.
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While AI-enabled software holds the potential to unlock new levels of creativity and efficiency, it also poses significant challenges to the workforce. Software development, once considered a future-proof career, may be one of first industries experiencing a direct impact from AI’s capabilities. Employment hiring data for the industry show that the number of job postings is hovering near all time lows. While the series only began in February 2020, it speaks to the upheaval the industry has seen in recent years perhaps catalyzed by AI’s growing capabilities.
The evolving employment landscape, shaped by successive waves of technology, underscores the need for a balanced approach to innovation and employment. Historical examples, such as the adoption of Excel and the transition to CG animation, demonstrate that while technology can disrupt existing jobs, it also can create new opportunities and elevate workers to higher-paying positions. Industries such as software development illustrate a contemporary example of an industry undergoing a technology-induced transformation. As AI continues to advance, it is crucial for both individuals and organizations to embrace change, invest in skill development, and remain agile in the face of technological progress. In my opinion, AI is likely to create more opportunity than it disrupts. Employers and employees can harness the potential of technology to drive growth and prosperity in the economy and the workforce.
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