As investors, we need to know how firms will manage the seismic shift that jobs markets will experience due to generative AI over the next few years and decades.
- Generative AI could expose hundreds of millions of jobs globally to automation, and while very few will be lost entirely, the majority will be impacted in some form or other. Historically firms have adapted to new technologies, improved their productivity and revenues, and created new roles for humans to do. Indeed, despite all the technological advancements of the past century many advanced economies are experiencing near full employment.
- A significant number of jobs that are done today will however change. With technological transformation accelerating at a faster pace, Columbia Threadneedle has developed a proprietary “Five ‘S’ Framework” to help assess how firms are managing the associated risks and opportunities around their human capital management. Sectors such as healthcare, utilities and catering have the potential to be particularly disrupted.
- We will continue to engage with firms to understand the opportunities generative AI, automation and other technologies can offer, and as the demand for skilled labour rises we will continue to discuss with firms their talent management and planning in terms of long-term risk management.
Interested in learning more?
In this Thematic Insight we focus on ”substitution” – that is the opportunities firms have to substitute human capital for automation, digitalisation and, increasingly, artificial intelligence. Download the full article to learn more.