According to the latest BCG research, the rise of Generative AI is shaking up the job market. BCG's decade-long "Global Talent Decoding" series has found that concerns over job security have surged to the top priority for employees. Despite ranking seventh in the past decade, job security leaped to the top spot in 2023.
BCG believes this shift is likely due to Generative AI. The report states: "Recent headlines suggest that the heightened focus on job security may stem from industry restructurings or increased geopolitical uncertainties, but we believe these are not the main drivers. Instead, we think this primarily reflects employees' concerns about their long-term employability."
Survey data shows that those expressing concerns about the impact of Generative AI on jobs are more inclined to prioritize job security. While technology has always influenced employment, Generative AI has raised disruptions to a new level, affecting not only repetitive tasks but also creative and conceptual work.
BCG survey participants are using GenAI for various purposes (Image courtesy of BCG)
Although Generative AI has raised concerns among some employees, there is no indication that it has led to widespread negative impacts. BCG states that its data shows "most employees are not overly worried about AI making them unemployed." However, 70% of respondents "expect their jobs to change, sometimes requiring them to develop new skills," the research team writes. "Only a quarter of respondents believe Generative AI will have no impact on their jobs."
Meanwhile, Generative AI also offers new opportunities for employees to acquire and apply new skills. BCG's survey shows that the majority of respondents using Generative AI use it for information retrieval, writing, and administrative tasks.
Regardless of the specific new skills required, the majority of employees are willing to undergo retraining. BCG's report states that 57% of respondents are willing to retrain under any circumstances, and another 35% are willing to retrain "but only in the face of severe difficulties." Only 8% said they would not retrain even in the face of serious employment difficulties.
Not every industry will be equally disrupted by Generative AI, making some jobs more protected than others. For example, BCG lists financial services, design/art/creative professions/architecture as the "most disrupted" industries, while manual professionals/physical labor and social care/social services rank as the "least disrupted."
Employees can shift from more impacted industries to less impacted ones (Image courtesy of BCG)
BCG's survey indicates that many employees are confident about moving from one job to another. For instance, 45 respondents believe they can transition from financial services to business management, which is less impacted by Generative AI. Additionally, 21 sales and customer service personnel told BCG they could easily transition to public services and administration, also areas expected to be less impacted by Generative AI.
BCG suggests that Generative AI seems to be changing how people feel about and expect from their jobs. It underscores the need for long-term job security and flexibility in learning and development. Companies that better adapt to these changes will naturally gain an edge in the market.
"To understand employees' visions for their future careers, employers need to investigate their emotions and relationships with this disruptive technology," BCG writes. "Employers may also want to understand how to maximize potential productivity gains and how to help employees adapt to the new world of work."
It remains unclear how Generative AI will impact employment. If it follows the pattern of other technological innovations, it will bring some positive effects, some negative effects, and other unforeseen impacts (including positive, negative, and neutral).