The Short Term Impact of AI on Employment

AI in the short term reduces the immediate need for more employees as companies start incorporating AI solutions into their systems. This shift might lead to a scenario where a company plans to hire fewer people and use AI to supplement the workforce. However, the implementation of AI does not necessarily mean a one-to-one replacement of human workers; rather, it aims at increasing productivity by utilizing AI tools effectively. Despite concerns about job displacement due to AI, historical trends suggest that new technologies eventually lead to increased productivity, new business opportunities, and net employment growth over the medium and long term. The emergence of AI startups and the creation of various AI-related businesses are seen as potential sources of new job opportunities that could also enable individuals to engage in side gigs, reflecting a broader potential for job creation in the AI landscape.