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Oct. 14, 2024, 7:39 a.m.
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AI's Impact on Job Skills: A Recent Indeed Report Analysis

Artificial intelligence is already influencing the way some individuals perform their jobs, but it isn't ready to fully replace human roles, according to a recent report from Indeed. The report, published on September 25, indicates that none of the over 2, 800 workplace skills identified by Indeed Hiring Lab were deemed "very likely" to be replaced by generative AI. In fact, 68. 7% of the skills were classified as "very unlikely" or "unlikely" to be replaced by AI, while 28. 5% might be "potentially" replaceable. The report analyzed various skills, including soft skills such as communication, leadership, and organization, technical skills like specific programming languages, and hands-on abilities such as cooking and medication administration. Svenja Gudell, Indeed's chief economist, explains, "We were able to map these skills to over a million job postings from the past year and evaluate whether generative AI could replace a human for a specific job function. The results were striking, revealing that there were literally zero skills that were very likely to be replaced. " Indeed employed GPT-4o, OpenAI's latest multimodal generative AI model, for this analysis, assessing its capability to perform work-related skills in three areas: providing theoretical knowledge, using those skills for problem-solving, and executing them physically or digitally. This assessment helped in determining the likelihood of generative AI replacing human workers for certain skills. The research reveals that, currently, AI is primarily positioned to aid workers rather than replace them: While AI demonstrates notable technical skills, it lacks the advanced problem-solving abilities and hands-on functionality needed to compete with human labor effectively. Gudell emphasizes, "Our conclusion is that generative AI, in its current form — and that’s a significant caveat — functions best as an advanced digital assistant that can enhance productivity in certain environments, but it hasn't yet replaced humans. " Indeed's study examined 16 occupations, identifying five roles where a considerable proportion of skills might be susceptible to AI replacement. These occupations include: - Accounting professionals - Marketing and advertising specialists - Software developers - Health care administrative support staff - Insurance claims and inspection officers Gudell notes that the technical and often repetitive nature of the skills required in these professions aligns with AI's strengths, particularly since these roles typically require less physical interaction. Conversely, jobs that involve client interactions, physical presence, or less repetitive problem-solving are the least likely to be replaced.

Gudell cites nursing in patient-facing health care as a prime example. However, Gudell advises against avoiding career paths that may be more vulnerable to AI replacement. She suggests that those interested in fields like software development should embrace AI tools to enhance their productivity and market competitiveness. "It's really about maximizing the use of these tools when job hunting, " she states. For individuals aiming to increase their earning potential, CNBC offers an online course titled How to Negotiate a Higher Salary. Expert instructors will provide guidance on preparing for negotiations, building confidence, communication strategies, and crafting counteroffers. Pre-register now and use the coupon code EARLYBIRD to receive a 50% introductory discount, valid through November 26, 2024.



Brief news summary

Indeed's recent report, spearheaded by chief economist Svenja Gudell, reveals that artificial intelligence (AI) is reshaping the workplace, but it is unlikely to completely replace human jobs. An analysis of over 2,800 skills across various professions found that approximately 68.7% are deemed "very unlikely" or "unlikely" to be automated, with only 28.5% facing some risk of automation. The study evaluated both soft skills, like communication, and hard skills, such as programming, based on data from over one million job listings. Importantly, no skills were identified as "very likely" to be automated; instead, AI is viewed as a digital assistant that enhances productivity but lacks in critical problem-solving and hands-on tasks. The results suggest that while areas like accounting and software development may see some shifts, jobs requiring personal interaction, such as nursing, are more robust. Gudell recommends that workers in potentially impacted sectors adopt AI tools to improve productivity and open up new job opportunities.

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