How can AI enhance opportunities for skilled workers?

Introduction

Highly skilled workers would be wise to master artificial intelligence (AI) tools now to gain a competitive edge in the job market, a new Otago study shows.

The Impact of AI on Education

The research, published in The Scottish Journal of Political Economy, finds AI-based education will better prepare highly skilled workers for the changing job market.

Corresponding author Dr. Murat Ungor, from the Department of Economics, emphasizes that as AI and automation become more sophisticated, the technologies will increasingly require human partners who can understand, use, and manage them effectively.

Shifting Focus

While many studies have explored how automation replaces tasks typically done by low-skilled labor, the Otago researchers shifted their focus to how AI-based education can positively affect highly skilled workers.

Real-World Example

Dr. Ungor cites the example of Fan Hui, a three-time European champion of the board game Go, who was defeated by an AI system in 2015. However, after practicing against AI, he elevated his game and won his next European tournament easily.

“Fan Hui’s experience exemplifies how AI can be a powerful tool to reskill and upskill workers for the future,” Dr. Ungor says.

Reskilling for the Future

Dr. Ungor and his former Master’s student Rachael Grant developed a model showing how automation will lead to a rise in the skill premium. This model outlines five production factors:

Traditional physical capital (such as machines or assembly lines)
Automation capital (such as industrial robots)
Low-skilled labor (such as assembly line workers)
Highly skilled labor with a traditional education background
Highly skilled labor with an AI-based education background

The gap between wages of highly skilled workers and low-skilled workers will increase, with low-skilled wages falling while wages for highly skilled workers with a traditional or AI-based education initially rising.

Seizing the Opportunity

Those who embrace AI-based education earlier potentially have a window of opportunity to command higher wages and stay competitive before the premium associated with those skills decreases as a larger pool of AI-skilled workers enters the job market.

“Think of it like a bonus for having expertise in working with AI tools,” Dr. Ungor says.

A Call to Action

The results highlight a clear call to action for New Zealand’s education and training landscape. Dr. Ungor advocates for educational institutions from primary to tertiary to undergo a shift to equip young New Zealanders with a broad and adaptable skillset.

Policymakers and educational institutions should invest in a revamped education system that incorporates AI fundamentals, machine learning, and data analysis into curriculums while still fostering critical thinking, problem-solving, and collaboration skills.

“By understanding how AI will impact skills and wages, we can develop educational and training programmes to help workers succeed in the future.”

For more details, view the full article here.

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