BUSINESS ANALYTICS RESEARCH PAPER

Impact of AI on employment

Under the guidance of

Dr. Sheetal

Submitted by-

Manisha Dutta – Pge22113

Suyash Kumar Singh

Shubham Kumar – PG22209

ABSTRACT

This report investigates the impact of artificial intelligence (AI) on employment, drawing insights
from a survey conducted among AI professionals and the general public. The research reveals diverse
perspectives among AI professionals, with developers being notably optimistic, followed by
consultants, educators, and ethicists. AI-driven automation is significantly reshaping various sectors
and daily life, liberating human resources from repetitive tasks and transforming work dynamics. The
study highlights a strong correlation: individuals open to acquiring new skills are more likely to
foresee AI's substantial impact on the job market in the next 5-10 years, emphasizing the importance
of continuous learning. While the public expresses optimism about AI's job-creating potential, there is
also awareness of potential job displacement risks. Most notably, a majority of people are willing to
acquire new skills, demonstrating proactive adaptation. Key sectors, including manufacturing,
customer service, retail & e-commerce, and finance, anticipate significant AI-driven transformations
in the coming years. This report serves as a vital resource for policymakers, businesses, and
individuals navigating the evolving landscape of AI-driven employment.

INTRODUCTION

The rapid advancement of artificial intelligence (AI) has stirred widespread discussions and debates
about its potential impact on the job market. As technology continues to evolve at an unprecedented
pace, it is imperative to understand how AI-driven automation is shaping employment prospects, both
from the perspectives of professionals within the field and the broader public. This research paper
delves into this critical domain, aiming to provide comprehensive insights into the multifaceted
influence of AI on employment.

In recent years, AI has moved beyond the realm of science fiction, permeating various aspects of our
lives. Its integration into sectors such as finance, customer service, retail & e-commerce, and
manufacturing has significantly transformed workflows and operational dynamics. As AI-driven
automation liberates human resources from mundane and repetitive tasks, it simultaneously introduces
new challenges and opportunities for the workforce. Professionals working directly in AI, ranging
from developers to consultants, educators, and ethicists, exhibit diverse perspectives on how these
advancements will impact the job market. These varied viewpoints reflect the intricate relationship
between technological progress and the employment landscape.

A pivotal aspect highlighted in this research is the correlation between individuals' openness to
acquiring new skills and their perception of AI's future impact. The study emphasizes the vital role of
continuous learning in anticipating and adapting to the substantial changes AI is expected to bring in
the next 5-10 years. This insight underscores the proactive approach necessary for both professionals
and the general public, as they prepare themselves for the evolving job market dynamics.
Moreover, the research delves into the public's sentiment regarding AI, revealing a delicate balance
between optimism and caution. While there is a prevailing sense of hope about AI's potential to create
jobs, there is also a keen awareness of the potential risks associated with job displacement. This
nuanced understanding is crucial for policymakers, businesses, and individuals alike as they navigate
the complexities of AI-driven employment.

The sectors most susceptible to AI-driven transformations, including manufacturing, customer

service, retail & e-commerce, and finance, are thoroughly examined in this report. These industries
serve as focal points for understanding the immediate challenges and opportunities posed by AI,
making this research an indispensable resource for decision-makers seeking informed strategies for
the future.

In the following sections, this paper will delve into the diverse perspectives of AI professionals,
analyze the correlation between skill acquisition and job market expectations, explore public
sentiment, and provide in-depth insights into key sectors. By synthesizing these multifaceted
viewpoints, this research contributes valuable knowledge to the ongoing discourse on AI's impact on
employment, guiding stakeholders toward proactive and informed decisions in the face of this
transformative technological wave.

METHODOLOGY

In this research paper quantitative data collection method was used. Quantitative data collection is a
method of gathering numerical data that can be analyzed statistically. This type of data collection
involves collecting data through structured surveys, experiments, or other systematic methods. The
specific methods for data collection and analysis will depend on the research questions and the nature
of the data. Surveys were conducted by online. In this research Conducting a survey with Google
Forms is a popular and convenient way to collect information from respondents. The procedure is
building a survey in Google Forms and then sending it to the target audiences. To better comprehend
consumer responses, the survey questions use a 5-point likert scale. We floated the questionnaire in
the class groups, LinkedIn contacts as well as nearby friends and family to gather the data. The
purpose of the questionnaire was to determine the impact of AI on employment and how AI is able to
change the perspective of todays generation in terms of areas related to employment. We floated 12
questions in order to understand the individual’s behaviour when it comes to understanding about the
AI and its long- and short-term impact on employment.The use of a 5-point Likert scale in a
questionnaire can improve the quality and accuracy of the data collected, as well as make the survey
easier for respondents to complete. Analyzing the data collected using a 5-point Likert scale used
statistical tools to derive meaningful insights from the responses. The statistical tool that has used to
analyze data collected through a 5-point Likert scale is correlation.
 DATA ANALYSIS

The age data appears to be skewed towards

younger individuals, with a median age of 2
years.

There is a wide range of ages, with the youngest

being 1 year and the oldest being 5 years.

The distribution of current employment status is

not fully clear due to the unusual maximum
value of 4,000. Further clarification on the
categories or values for employment status is
needed.

On average, respondents appear to have a moderate level of familiarity with the concept of Artificial
Intelligence, with a mean score of 2.346.

This variable seems binary, with values of 0 and

1. It's not clear what it represents without
additional context.

Respondents appear to have some level of

engagement with virtual assistants like those from
Netflix and Amazon, with a mean score of
0.7284.

These variables also seem binary, with values of 0

and 1, but their meaning is not clear without
additional context.

AI professionals have different perspectives on the impact of AI on jobs. Developers are the most
optimistic, followed by consultants, educators, and ethicists. AI is automating tasks in many
industries, including finance, customer service, retail & e-commerce, logistics, and daily life. People
who believe that AI will significantly impact jobs are more likely to be willing to learn new skills.

The correlation coefficients among different groups of AI professionals provide their perspectives on
the impact of AI on job creation. AI developers exhibit a moderately positive correlation of 0.3959,
indicating their high optimism about substantial job growth due to the increasing demand for skilled
AI professionals. AI consultants, with a correlation of 0.3422, are also positive but more cautious,
acknowledging the link between AI advancements and job creation while having reservations about
the extent of employment opportunities.
AI ethicists, specialists in the ethical and societal implications of AI, display a weaker positive
correlation of 0.2205. They recognize the connection between AI progress and job creation but
express concerns about ethical challenges and potential job displacement, leading to a less optimistic
outlook. AI educators, responsible for training the workforce for the AI industry, show a moderate
positive correlation of 0.3054. They are hopeful about contributing to job generation by preparing
individuals for AI-related roles.

In simpler terms, AI professionals generally believe that AI will create more jobs in the long run, but
their confidence levels and specific concerns vary. AI developers are the most optimistic, followed by
AI consultants and educators. AI ethicists are less optimistic due to their concerns about ethical
implications and job displacement. Overall, these diverse perspectives highlight the complexity and
uncertainty of the relationship between AI development and future job opportunities.

The correlation of 0.7656562 between "AI will significantly impact the job market in the next 5-10
years" and "acquire new skills" suggests that there is a strong positive relationship between these two
variables. This means that people who are willing to acquire new skills are more likely to believe that
AI will have a significant impact on the job market in the next 5-10 years. As AI continues to
automate more and more tasks, workers who have the skills to complement AI will be in high
demand.

The data paints a positive and proactive outlook among the populace concerning AI's impact on the
job market. A significant majority, 90.123%, is optimistic about AI creating more jobs, reflecting
confidence in AI's potential for economic growth. At the same time, 83% recognize AI's ability to
replace traditional jobs, showcasing a realistic understanding of automation's disruptive potential.
Despite this awareness, 85% express willingness to acquire new skills, indicating a proactive
approach to remain competitive in the job market amidst technological advancements.

Furthermore, the data reveals a consensus (81.5%) on the imminent influence of AI within the next 5-
10 years, with various sectors anticipating significant impact. Manufacturing (73.3%) acknowledges
vulnerability, emphasizing the sector's potential for AI-driven automation. Customer service (76.1%)
anticipates a shift in human-AI interaction, reflecting the evolving nature of consumer support. Retail
& e-commerce (72.8%) foresees substantial transformations in online shopping experiences, aligning
with changing consumer behaviors. Finance (76.4%) highlights AI's role in reshaping financial
strategies, while logistics (53.08%) underscores AI's transformative potential in supply chain
streamlining, albeit with a slightly lower consensus.

In summary, the data paints a nuanced picture of AI's impact on the job market. While AI
professionals exhibit varying levels of optimism and caution, the public demonstrates a realistic
awareness of AI's disruptive potential. The widespread consensus on AI's influence across sectors
underscores the urgency for adaptive strategies, emphasizing the importance of continuous skill
development and proactive policy initiatives to navigate the evolving employment landscape
successfully.

HYPOTHESIS

H0: There is no association between finance and customer service

H1: There is a association between finance and customer service

The chi-square tests reveal compelling evidence of AI-driven automation's significant impact across
various sectors and daily life. Here null hypothesis rejected because p value =0.0004121 which is <
0.05, so there is an association between them. In finance and customer service, the p-value of
0.0004121 indicates a less than 0.05% chance of the observed results occurring by chance. This strong
evidence signifies substantial automation in these sectors, freeing up human resources from repetitive
tasks. AI automates financial forecasting, fraud detection, and customer support, enhancing efficiency
and customer service quality.

Similarly, in retail & e-commerce and logistics,

H0: There is no association between retail & e-commerce and logistics

H1: There is a association between retail & e-commerce and logistics

Here the p-value of 4.333e-06 < 0.05 , therefore underscores a significant impact, attributing this to
the automation of repetitive tasks. AI optimizes product recommendations, inventory management,
route planning, warehousing, and delivery, streamlining operations and improving customer
experiences.

Moreover, in daily life and work, AI-driven automation, particularly through chatbots on websites and
virtual assistants, is pervasive.

H0: There is no association between chatbots on websites and virtual assistants,

H1: There is a association between chatbots on websites and virtual assistants,

The p-value of 0.0007202 emphasizes the widespread adoption of these technologies, indicating a less
than 0.05% chance of observed results being random. Chatbots facilitate customer support,
transactions, and information retrieval on websites. Virtual assistants like Siri and Alexa perform
diverse tasks, from setting alarms to managing smart home devices, enhancing convenience.

Overall, these findings underscore the transformative power of AI-driven automation in sectors and
daily interactions. As AI technology advances and becomes more affordable, its integration is
expected to expand further, necessitating proactive adaptation and strategic planning from businesses
and individuals alike.

FINDINGS

 AI professionals have different perspectives on AI's impact on jobs.

 AI-driven automation is having a significant impact across sectors and daily life.
 People willing to acquire new skills are more likely to believe AI will impact jobs in the next
5-10 years.
 The public is generally optimistic about AI's potential to create jobs, but aware of job
displacement risks.
 A significant majority of people are willing to acquire new skills to adapt to the changing job
market.
 Various sectors anticipate a significant impact from AI in the next 5-10 years, with
manufacturing, customer service, retail & e-commerce, and finance being the most affected
sectors.

CONCLUSION

In conclusion, the analysis presents a comprehensive view of the perceptions surrounding AI's
influence on the job market, both from AI professionals and the general public. AI developers,
consultants, ethicists, and educators display varying degrees of optimism, reflecting the complexity of
their concerns about job creation and displacement. Developers stand out as the most optimistic
group, contrasting with ethicists, who express more reserved views due to ethical concerns.

The data from the general populace supports a positive and proactive outlook. An overwhelming
majority believes in AI's potential to create jobs (90.123%), coupled with a pragmatic
acknowledgment of AI's capability to replace traditional roles (83%). This awareness drives an
impressive 85% of respondents to express readiness in acquiring new skills, indicating a proactive
response to the evolving job landscape.

Furthermore, sectors crucial to the economy, such as manufacturing, customer service, retail & e-
commerce, finance, and logistics, anticipate significant AI-driven transformations. While the
consensus percentages are high, specifying the exact test values would have added depth to the
analysis.

In summary, the data portrays a nuanced perspective: optimism among AI professionals coupled with
realistic awareness and proactive measures among the general populace. It underscores the need for
adaptive strategies, emphasizing continuous skill development and proactive policy initiatives. The
collective sentiment emphasizes the transformative potential of AI, urging individuals and
organizations alike to embrace change and prepare for the evolving future of work.