AI and Its Impact on Job Markets in New Zealand

Artificial Intelligence (AI) is transforming job markets worldwide. It's an invisible force, reshaping the way we work, earn, and even think. In New Zealand, the impact is just as profound. 

For small to medium business leaders, AI presents both challenges and opportunities. While it's true that AI could potentially displace certain jobs, it can also create new ones, drive innovation and enhance productivity. The key is understanding these dynamics and adjusting accordingly. 

What's driving the adoption of #AI for Business tools? Apart from the prolific production of new generative AI tools. There are predominantly three commercial business drivers.

- Automate processes to reduce costs

- Reduce the impact of labour supply issues

- Create new customer experiences

Recognizing AI's Disruptive Potential 

It's important to remember that AI isn't just another buzzword - it's a transformational technology that can fundamentally change our labor markets. Recognizing this potential and planning for it can help New Zealand's businesses thrive in the face of change.

• The World Economic Forum predicts that by 2025, machines will perform more current work tasks than humans, compared to 71% being performed by humans today.

• A report by the New Zealand Productivity Commission found that up to 46% of jobs in New Zealand are at risk of automation over the next 20 years.

• According to a survey by PwC, 30% of jobs in New Zealand are at high risk of automation by the early 2030s.

• The adoption of AI in New Zealand is expected to increase productivity by 1.5% annually.

• The New Zealand government has launched the Artificial Intelligence Action Plan to help businesses and workers prepare for the impact of AI on the job market.

AI for business refers to the use of artificial intelligence technologies in various business operations to automate tasks, improve decision-making, and enhance overall efficiency. This includes the use of machine learning algorithms, natural language processing, robotics, and other AI technologies to analyze data, predict outcomes, and automate routine tasks.

AI can be used in a variety of business applications, such as customer service, supply chain management, marketing, and finance. For example, chatbots can be used to provide 24/7 customer service, while machine learning algorithms can be used to analyze customer data and provide personalized product recommendations.

AI can also help businesses make better decisions by providing insights and predictions based on large amounts of data. For instance, predictive analytics can be used to forecast sales trends and identify potential areas for growth.

The Importance of Reskilling and Upskilling in the Age of AI

One potential solution for businesses in New Zealand to mitigate the impact of AI job displacement is to invest in upskilling and reskilling their current employees. This means providing training programs and opportunities for employees to learn new skills that are in demand in the evolving job market. By doing so, businesses can retain their existing workforce and ensure they have the necessary skills to adapt to new roles that emerge as a result of AI.

Another solution is to focus on creating new jobs that complement the capabilities of AI. For example, businesses can invest in roles that require human skills such as creativity, emotional intelligence, and critical thinking, which are difficult for AI to replicate. By doing so, businesses can create new opportunities for their employees and ensure they remain competitive in the job market.

Finally, businesses can also consider implementing AI in a way that complements their existing workforce rather than replacing it. This means using AI to automate repetitive or mundane tasks, freeing up employees to focus on more complex and creative work. By doing so, businesses can improve efficiency and productivity while also retaining their existing workforce.

What practical steps should business leaders take to increase awareness and adoption of AI at work?

The first step businesses can take to increase AI awareness is to conduct research and educate themselves on the topic. This can include reading articles, attending conferences, and speaking with experts in the field. By doing so, businesses can gain a better understanding of what AI is, how it works, and what its potential impact on job markets could be.

The second step for businesses to increase AI awareness is to invest in AI education and training. This can include providing employees with access to AI courses and training programs, as well as partnering with universities and research institutions to stay up-to-date on the latest AI developments. By investing in AI education and training, businesses can ensure that their employees have the skills and knowledge to work alongside AI technologies.

The third step for businesses to increase AI awareness is to foster a culture of innovation. This can include encouraging employees to experiment with new AI technologies, providing them with the resources and support needed, and sharing their outcomes. By fostering a culture of innovation, businesses can create an environment that is conducive to AI adoption and that encourages employees to embrace new technologies.

Once businesses have a basic understanding of AI, they should assess the potential impact it could have on their industry. This can include identifying which job roles are most at risk of displacement and which tasks could be automated. By doing so, businesses can begin to develop strategies to mitigate the impact of AI on their workforce.

The final step businesses can take to increase AI awareness is to develop an AI strategy. This should include identifying areas where AI could be implemented to improve efficiency and productivity, as well as identifying potential risks and challenges associated with AI implementation. By developing a comprehensive AI strategy, businesses can ensure they are well-prepared for the potential impact of AI on their workforce.