Can education keep pace with AI's impact on the labor market?

Much is being written about the disruptive potential of AI on large segments of the workforce. Some of the predictions are dire. The McKinsey Global Institute predicts that AI will replace at least 30 percent of human labor by 2030 and Goldman Sachs calculates that AI could replace up to 300 million full-time jobs.

In a Brookings Institute report, MIT Economics professor Daniel Autor warns that many currently valuable human capabilities “will eventually be rendered obsolete” by AI. Similarly, Amy Webb, a New York University Business professor, forewarns of a significant number of people finding themselves permanently unemployed due to AI advancements.

Paradoxically, there is a consensus that AI could foster the creation of millions of new jobs, potentially offsetting job losses. The World Economic Forum, in its Future of Jobs Report 2020, projects the creation of 97 million new jobs by 2025, surpassing the 85 million jobs expected to be replaced by AI. Furthermore, recent reports in Forbes and the New York Times indicate that AI “will probably help many workers be more productive” in their existing jobs.

However, many new or evolving jobs require proficiency in new technologies, a skill set absent in a large portion of the current and prospective workforce. Moreover, the new jobs created by AI may only materialize in the long run, with a transitional period characterized by a mismatch between available skills and market demands. Hence, job losses.

And that’s where education comes in.

Education emerges as a pivotal means of mitigating the disruptions induced by AI. The evolving labor landscape underscores the urgent need for schools, universities and other educational institutions to recalibrate their approach to skill development. The skills required in the workforce are evolving, with a growing demand for individuals who can collaborate with AI systems, understand their limitations, and harness their potential. As such, it’s essential to foster learning environment that encourage adaptability, problem-solving, and creativity in working with AI. The breadth and depth of AI's impact on society absolutely necessitates its inclusion in schools and educators must address the ramifications of disruptive technologies with their students.

Unfortunately, as Autor notes, the pace of adjustment in education (and job retraining) has been sluggish, lagging behind technological advancements for decades. To bridge the gap between technology and education, we need to foster a learning ecosystem that is responsive to the changing demands of the workplace, nurturing skills that harmonize with emerging technologies and facilitate successful transitions to new roles. It’s critical, as Autor warns, because education is already losing the race with technology.