AI and its Impacts on the Job Market in Asia
Posted on : November 3, 2023Author : Sylvia D’silva
GPT-4 is here, and the layoff anxiety in markets is high, especially in Asia. A recent survey conducted by Ipsos Global Advisor highlighted how 58% of the Indian population, 57% of Thailand, and 55% of Malaysians rank on the list (of 31 countries surveyed). Similarly, Thailand (69%), Malaysia, Indonesia (62%) and India (51%) also top the list for being anxious about their current job role being replaced by AI Technology. While there remains a fear of the negative impacts on either job roles, or added complexity to the work environment, the benefits of AI inclusion are tangible. AI-powered products and services can transform the lives of people (mostly by making it easier) in the next 3-5 years, by 81% in South Korea alone.
Speaking of the Job Market specifically, the survey shows 32% of Asians expect better AI impacts, while 36% expect worse outcomes. Needless to say, AI-related overall anxiety is higher in the global South region, with older demographic structures. Developed countries with high education and income levels show a more optimistic outlook, expecting their jobs to be made easier rather than being replaced.
On one hand, there are split opinions on how AI might automate yet require human instructions and maintenance resulting in a balancing out effect for the jobs. On the other, there is also enough anxiety given the active lay-offs that have already started taking place. In the midst of all this, have we ever wondered which jobs run the most risk of being automated? Let’s discuss this, while closely observing the Asian Job Market and how it has impacted the employment rates of people.
AI and Its Impact on Employment
The journey of AI from just a simple far-in-the-future concept to an everyday part of our life, and job, has been nothing short of remarkable. Breakthroughs in AI, such as machine learning and natural language processing, have not only revolutionized industries but have also started to replace human workers. We can now have “workerless factories” which are already on the road to being tested (Tesla has already launched automated factories in Fremont).
However, this shift in the workforce is not without its challenges. While AI promises increased productivity and efficiency, it also raises concerns about job displacement. According to the Asian Development Outlook (ADO) 2018, the labour force in developing Asian countries is expected to rise even more, it was 73.2% in the third quarter of 2022 which is an all-time high since the OECD started recording the series in 2005, necessitating both more jobs and better jobs. Policymakers now face the dilemma of ensuring that the benefits of AI could be used to benefit the labour force too besides providing automation, requiring coordinated action on education, infrastructure, and social protection.
Linking Technology and Employment
Developing countries in Asia have seen substantial job creation, resulting in decreasing levels of poverty among the participating groups, thanks to technological advancements. Countries like China, South Korea and Japan have exceptionally adapted Robot-based technological services, becoming the hub-spots of such advancements. The routine-based monotonous jobs of the manufacturing units were the first affected as automation now rules the world. We can find AI performing human tasks too, such as in restaurants or customer support services. Thus, on one side is the gift of technology and on the other side a sparking tension among the people in Asian Job markets.
Adaptive learning technology and biometric identification are examples of how technology is used to enhance education and social protection. The way our world has advanced in the past few decades, a Capitalistic market finds it easier to reduce their costs by using AI services, given their high levels of adaptation and updating quality, with a faster learning space than most humans. Yes, they do require regular maintenance and bug fixing, yet it is unmatched in terms of speed with a human. That is what worries the labour force the most.
AI Innovations & Asian Job Markets
Reshaping various industries across Asia, with some leading the way in adopting this transformative technology, here are the top 4:
Healthcare:
Recently, Aidoc and Zebra Medical Vision have been working on advanced AI technology that can assist radiologists in diagnosing patients. Similarly, in almost all fields of healthcare- dentistry, biochemistry, pathology, etc.; artificial intelligence has added to assist doctors for better accuracy in diagnoses, developing better drugs for various diseases, predicting disease outbreaks, and much more – that might increase our life expectancy in the near future.
Manufacturing:
Machine learning, Robotic Process Automation (RPA), designing and prototyping are the best examples of AI inputs in the manufacturing industry. The supply chain benefits greatly from this optimisation, giving manufacturers the opportunity to entirely automate their management processes. Tesla Gigafactories, for example, produce electric vehicles, batteries, and energy products with only a little human force, the rest is all highly automated with AI.
Banking and Finance:
AI tools have replaced chunks of human workers, particularly in areas that involve routine tasks, data analysis, and customer support. A chatbot is available for 24/7 without having shifts to work in, it has a fast response time and can mostly provide accurate help links with the keywords. Bank of America, JPMorgan Chase, and Wells Fargo have all reduced their human customer support, switching to online chatbots for most financial and banking solutions.
Education:
The world witnessed the transformation of educational mediums and platforms during the pandemic period. AI has made it more accessible, adaptive, and effective, allowing students from all over the world to have equal learning opportunities with ITS and personalised learning platforms that offer comprehensive courses, all made easy through automation. In fact, students also seek AI-related courses now to have better opportunities in this advanced job market. In 2020, there was a 130% increase in demand for AI-related certifications
These industries are experiencing a dual effect of automation and augmentation, where some jobs are eliminated while others become more skilled and productive.
The impact of AI on employment varies across Asian markets, depending on their sectors and their technological advancement patterns. While it can result in job displacement in some sectors, overall headcount is expected to increase in the majority of companies. High-income countries tend to benefit more from job augmentation in knowledge-intensive industries, whereas developing economies face greater challenges.
In India and Indonesia, concerns arise due to high youth unemployment rates, making the pace of automation a critical issue. Job mismatches and potential job reductions in sectors like content creation and IT training underscore the need for workforce adaptability.
Case Study: Land of the Rising Robots
The demographic challenges facing Japan, including a rapidly shrinking labour force, have prompted the country to embrace automation and robotics. With a declining population and limited immigration, Japan faces a severe labour shortage; here AI is nothing but an attractive solution for the country. Japanese companies have a long history of leading in robotic technology, with firms like FANUC, Kawasaki Heavy Industries, Sony, and Yaskawa Electric Corporation leading the market. Japan’s economic success particularly depends on industries like automotive and electronics.
Despite concerns about job displacement, Japan’s expertise in robotics positions it to navigate the changing landscape of work. The country continues to be a leader in robot production and its suited utilisation, with a larger ratio of such robots, compared to human workforce in certain sectors of the market. As Japan confronts its demographic challenges, robotics plays a crucial role in attaining sustainable productivity and accelerated economic growth. This highlights a unique perspective of the future of work as AI and automation continue to shape job markets worldwide.
Conclusion
As the present day Artificial Intelligence scenario evolves, the Asian job market comes closer to a complete transformation. While AI promises increased productivity and efficiency, it also raises concerns about job displacement, especially in countries with high youth unemployment rates. It is the responsibility of policymakers and businesses who must work hand in hand to ensure widespread availability of these technological resources, and provide the tools required to thrive in this changing landscape.
The primary challenge to be addressed is striking a balance between technological progress and social well-being, so as to get clarity on situations of job mismatch and intellectual property rights violation. In doing so, Asia can harness the potential of AI to usher in a new era of economic growth and prosperity, while mitigating a portion of its disruptive effects on employment.
References
- Schneider, T., Hong, G., & Le, A. (2018, June). Land of the Rising Robots. International Monetary Fund. https://www.imf.org/en/Publications/fandd/issues/2018/06/japan-labor-force-artificial-intelligence-and-robots-schneider
- The Big AI Takeover: What Jobs Are Most at Risk of Being Automated?. (2023, April 23). Singapore: Black Box. https://blackbox.com.sg/everyone/the-big-ai-takeover-what-jobs-are-most-at-risk-of-being-automated
- Mack, C. (2023, July 31). The Rise of Layoff Anxiety: The Impact of Artificial Intelligence in Asia. IMPACTxAsia: Community Business. https://www.communitybusiness.org/latest-news-publications/rise-layoff-anxiety-impact-artificial-intelligence-asia#:~:text=The%20rise%20of%20AI%20in,navigate%20this%20transformative%20period%20effectively
- Artificial Intelligence (AI) will affect one in every five jobs in Asia. (2019, May 13).Cambridge Massachusetts & Singapore: Technology for You. https://www.technologyforyou.org/artificial-intelligence-ai-will-affect-one-in-every-five-jobs-in-asia/
- The impact of AI on the job market: How automated document summarisation and other productivity tools will shape future work trends in Southeast Asia. (2023, June 12). Tech Collective. https://techcollectivesea.com/2023/06/12/ai-job-market-automated-document/
- How Technology Affects Jobs in Asia. (2018, September 26). ADB. https://www.adb.org/news/features/how-technology-affects-jobs-asia
- Kawasaki, N. (2023, July 3). Economists fear generative AI’s impact on India, Indonesia. Nikkei Asia. https://asia.nikkei.com/Economy/Economists-fear-generative-AI-s-impact-on-India-Indonesia
- AI is making the world and most Asian markets nervous about job security – Ipsos Global Advisor survey. (2023, July 11). Phillipines: Ipsos. https://www.ipsos.com/en-ph/ai-making-world-and-most-asian-markets-nervous-about-job-security-ipsos-global-advisor-survey#:~:text=The%20Asian%20markets%20of%20Thailand,to%20replace%20their%20current%20job
- Labour Market Situation. (2023, January). OECD. https://www.oecd.org/newsroom/labour-market-situation-oecd-updated-january-2023.htm
Sylvia D’silva
Intern, Asia in Global Affairs
The originality of the content and the opinions expressed within the content are solely the author’s and do not reflect the opinions and beliefs of the website.
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