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Why are people using artificial intelligence (AI)? A survey of companies using AI across the Richmond, Virginia region, since 2022 suggests that 45% of companies are automating tasks to reduce staffing and labor costs.
The usual suspects in big tech can be found pitching their latest AI solutions to large organizations — AI that augments human capabilities and acts as a powerful AI co-pilot rather than replacing workers.
The Federal Reserve Bank of Richmond survey of 100 firms using AI since 2022 appears to confirm the fears of many workers — that their bosses will eventually replace them with AI.
Meanwhile, Richmond Fed, in association with Duke University, found that 60% of firms have implemented software, equipment, or technology in the last twelve months to automate tasks that employees previously completed.
85% of respondents advised that enhanced business processes were the biggest motivation for automating tasks, as well as increasing the quantity and quality of employee output.
However, these reports lack information on the impact these changes will have on the existing workforce and how to ensure employees are brought along for the ride rather than left on the scrap heap.
Key Takeaways
- 45% of companies in Richmond, VA, are automating tasks to reduce staffing and labor costs.
- Big tech firms promote AI as tools to augment human capabilities rather than replace workers.
- Richmond Fed’s survey indicates 60% of firms have automated tasks previously done by employees in the past year.
- 85% of firms cite enhanced business processes and improved employee output as key motivations for automation.
- Despite fears, surveys show many employees are optimistic about AI, with 78% feeling positive about its workplace impact.
AI in the Lone Star State: Employment Largely Unaffected
In another survey, the Dallas Fed’s Texas Business Outlook (TBOS) asked business leaders about AI and automation technology that can simulate human intelligence and problem-solving capabilities. The answers provided valuable insights into the impacts of AI on the workforce from a panel of more than 400 businesses.
One of the surprising insights from the AI report was that AI has not affected their need for human employees. For example, one firm from finance reported:
“AI is helpful in offloading workload and increasing productivity, but we are not at the point where AI will replace workers.”
However, the report does reveal that employees in every industry must adapt, evolve, and acquire new skills to remain relevant in a world where AI and automation have become the norm.
New job positions, such as prompt engineering, are rising in importance. New reskilling opportunities are also emerging for workers who want to step up and acquire skills that will make them invaluable to their employers.
Future AI Plans Signal More Job Cuts Than Current Implementations
Another fascinating insight from the report is that AI-related workforce reductions are expected in the firms planning to use AI rather than those already implementing AI or automation. This suggests a belief that AI will make a bigger difference once it is fully implemented.
The report leaves readers with more questions than answers about why early adopters have vastly different viewpoints and strategies than organizations in the early planning stages of AI.
The disparity between expectations and implementation appears more pronounced in small firms and manufacturers, with one transportation manufacturer reporting:
“AI is more challenging to implement than anticipated, and the impact is currently lower than expected.”
The report leaves readers with more questions than answers about why early adopters have such vastly disparate viewpoints and strategies than organizations in the early planning stages of AI.
Despite the doom and gloom that often fills our newsfeeds, ResumeNow’s State of AI in the Workplace report revealed that 78% of US employees feel “somewhat or very positive” about using AI for work purposes. An optimistic 62% of employees also believe AI will “positively impact the workplace.” Interestingly, only 3% feel negative about using AI technology at work.
The Bottom Line
The impact of AI on employment will continue to rage for many years to come, but it’s important to remember that when it comes to technological disruption, this is not our first rodeo. From the arrival of computers in offices and the Internet to smartphones and digital disrupters like Uber, we know how this story plays out.
Previously secure traditional job roles will become threatened and replaced by new jobs that fit the new era. Some will feel threatened and resist change, whereas others will see opportunites, so they will educate themselves, upgrade their skill set, and adapt to tech trends in the job market.
