AI growth is raising demand for skilled hands on workers

In short: AI is advancing quickly, but many important jobs still need people on site, and that is pushing up demand for skilled hands on workers.

What's going on

Researchers and economists keep finding the same pattern. AI and robots are best in places where the work is controlled and repeatable, like factories and warehouses. They struggle in messy, changing settings, like homes, construction sites, and hospitals.

McKinsey says tasks are easiest to automate when the environment is predictable. It points out that jobs such as plumbers and other trades that work in different buildings and unexpected conditions are much harder to automate and are expected to grow. The US National Academies makes a similar point, noting that even if software can plan a job, doing the real world “last mile” work, like installing wiring in an old building, is still difficult for machines.

Several big studies also suggest that most jobs will change rather than disappear. BCG estimates that 50 to 55% of US jobs will be reshaped by AI within a few years, but it also says 57% of jobs depend heavily on physical presence, hands on work, or sustained human interaction. The International Labour Organization estimates only about 2.3% of jobs worldwide are at risk of being fully automated by generative AI (chat style AI that produces text and images).

What to watch

More companies are trying “physical AI,” meaning AI paired with machines that move in the real world. That could reduce some repetitive roles in structured settings, but it also creates new demand for people who can install, fix, and safely supervise this equipment, like mechanics for a new kind of machine.

Source: NYTimes