Research: How Gen AI Is Already Impacting the Labor Market | Harvard Business Review

The rapid advancement of Gen AI, such as ChatGPT and image-generating tools, is transforming labor markets and reshaping workforce planning, talent acquisition, and employee development. The article highlights research, forthcoming in Management Science, analyzing over a million job posts and found significant declines in demand for automation-prone jobs like writing (30%) and software development (20%) since the introduction of Gen AI tools. Similarly, graphic design and 3D modeling jobs declined by 17% within a year of tools like DALL-E entering the market. This drop in demand has intensified competition among freelancers, with more bids per job and an increased focus on AI-related skills. The study further reveals that Gen AI’s impact goes beyond task replacement, increasing job complexity and requiring broader skill sets. For example, after ChatGPT’s launch, automation-prone job postings required 2.18% more skills than manual-intensive ones, indicating that while Gen AI may reduce demand for some roles, it simultaneously elevates the skill level required for others, underscoring the critical need for upskilling and reskilling in the workforce. With this as the backdrop, I am resharing an Accenture report, which includes a framework for categorizing four types of impacts that AI can have on jobs and work tasks.