What is the impact of automation and arttelligence on the labor market?

28 Nov 2024 Automation and artificial intelligence are among the most prominent technological trends reshaping today’s labor market landscape. As these technologies advance rapidly, questions are being raised about their impact on the nature of jobs and careers. While these innovations are helping to boost productivity and efficiency, they are also raising concerns about the loss of traditional jobs that were dependent on human effort. Adapting to these shifts requires comprehensive strategies that include continuous education and training, as well as government support and cross-sector collaboration. This report aims to explore the impact of automation and artificial intelligence on the labor market and how to address the associated challenges.

Expert statements

Dr. Amjad Al-Dhahli, CEO of Al-Mustaqbal Technology and Development Company, said: “The emergence of modern technologies, including artificial intelligence, has led to a significant shift in the nature of many jobs. Although this shift is generally considered positive in the business sector, there are some jobs that may be completely transformed into automated virtual tasks. These jobs include: (customer service, automated response, instant translation, taxi driver, some legal jobs, and many administrative jobs such as data entry and routine office jobs.) These shifts allow workers to move to new, more specialized jobs.”

Al Dhahli pointed out that with the rapid advancement of technology, it has become necessary for employees to keep up with everything new in their fields. Skills can also be enhanced by acquiring new skills through available channels, whether free or for a nominal fee. Employees can participate in accredited training courses or obtain professional or academic certificates, which helps them develop their capabilities and skills in line with the changing requirements of the labor market. Learning and self-development must also be continuous, as employees must allocate regular time to enhance their knowledge and interact with the latest professional practices.

The role of governments and societies

“Governments and communities also play a vital role in supporting workers who have lost their jobs due to automation,” he stressed. “Many countries are taking steps to address this, including introducing diverse vocational training programs across economic sectors to reskill. Public-private partnerships are an effective way to create new jobs that fit market needs. Governments are also providing financial support and mentoring programs to help workers transition to new jobs, mitigating the impact of technological change on individuals.”

“On the other hand, AI can improve productivity by supporting workers rather than replacing them. AI aims to improve operations through the use of predictive software and data analysis, which helps in making timely and accurate data-based decisions. AI technologies can also be used to improve maintenance and operations, analyze big data, and automate routine tasks that do not require much effort. This allows workers to focus on more specialized and creative tasks, which increases efficiency and productivity,” he added.

Studies also indicate that AI can boost innovation and create new job opportunities in multiple fields, such as healthcare, education, and industry. Therefore, adapting to these changes requires a comprehensive strategy that combines education, continuous training, and the development of public policies that support workers in facing the challenges resulting from automation. AI and modern technology represent an opportunity to improve work environments and increase productivity, provided that workers are effectively supported to keep pace with these changes. This also requires joint efforts from companies, governments, and communities to ensure a sustainable and prosperous future for all.

Steps to enhance skills

On the other hand, Al Khalil bin Ahmed Al Abdali, AI tools trainer, pointed out that to enhance workers’ skills in the face of rapid technological changes, several basic steps can be followed. First, workers need to continue learning and developing by engaging in workshops and training courses that cover the latest technologies such as artificial intelligence, data analysis, and programming tools. The goal is also to build a solid understanding of modern technology applications and develop the skills needed to apply them in their daily tasks. This continuous learning contributes to enhancing workers’ competitiveness in the changing labor market.

He added: “Online education platforms, such as Coursera and Udemy, provide workers with the flexibility to gain relevant knowledge and certifications through specialized courses. These platforms enable them to learn new technologies continuously and without being restricted by time or place, which increases their access to diverse educational resources. In addition, workers can benefit from discussion forums and online communities to exchange knowledge and experiences.”

Al-Abdeli stressed that engaging in practical projects to apply the acquired knowledge enhances workers’ ability to understand new technology more deeply. By working together on real projects, they can discover innovative solutions to problems they may face, which contributes to improving the quality of work and increasing productivity. Learning from experienced people through mentors is also an effective way to accelerate workers’ understanding of technology and its applications. Mentors can provide practical advice and guidance based on their previous experiences, which helps avoid common mistakes and speeds up the learning process. The presence of mentors in work environments also encourages knowledge exchange, which creates a culture of continuous learning within organizations.

Al-Abdeli explained that with the increasing reliance on multidisciplinary teams, it becomes important for workers to develop the skills to collaborate with colleagues from diverse backgrounds such as engineers, developers, and analysts. This collaboration ensures a seamless integration of technology into the workplace, where each individual can bring their own unique insights and skills. Artificial intelligence is also significantly changing the nature of employees’ daily work. It helps automate many routine tasks, such as processing data and responding to repetitive inquiries. This saves employees time and effort, allowing them to focus on more creative and strategic tasks, such as developing new ideas and analyzing data more deeply.

AI-based analytics tools also allow employees to make more accurate and faster decisions with available data and real-time analytics. Additionally, these tools can provide accurate forecasts based on past data patterns, which helps in strategic planning.

Al-Abdeli also stressed that AI technologies enable virtual assistants, chatbots, and employees to complete their tasks from anywhere and at any time, which enhances flexibility and contributes to improving their productivity. This transformation also opens up opportunities for remote work, which increases employee satisfaction and helps attract new talent.

Despite the many benefits of AI, companies face several challenges in integrating it into the workplace, Al-Abdeli said. AI technologies require significant investments in infrastructure and software, in addition to the necessary training costs for employees. These costs can be a barrier for small and medium-sized enterprises that may not have sufficient financial resources. He pointed out that there is also a large gap between the skills required to operate AI systems and the skills available to employees, which requires significant efforts to train the workforce. Companies must invest in advanced training programs to ensure that their employees are equipped with the necessary knowledge.

“Some employees may be concerned about the impact of AI on their jobs, especially if there is a threat of job loss as a result of automation of tasks,” said Al-Abdeli. “So, companies should manage these concerns through effective communication and explaining how AI can enhance employees’ roles rather than replace them.”

In addition, from a security and technical standpoint, processing large amounts of data requires the use of AI, which poses challenges in terms of security and protection of sensitive information. Companies need to adopt strong data protection strategies to ensure the integrity of information and customer privacy. Companies also sometimes face difficulties in integrating AI technologies with their existing systems, especially if they rely on legacy technologies. This integration requires comprehensive updates to the technical infrastructure to ensure system compatibility.

By following these strategies, companies can ensure success in keeping up with technological shifts and making the most of AI.

The impact of artificial intelligence on jobs

For his part, Eng. Ibrahim bin Abdullah Al Hosni, Chairman of the Digital Economy and Artificial Intelligence Committee at the Oman Chamber of Commerce and Industry, said: “Artificial intelligence and automation can significantly impact routine and repetitive jobs that rely on simple manual or administrative work, and are the most vulnerable to change. This includes data entry jobs, administrative tasks, manufacturing and assembly line jobs, simple translation services, and basic graphic design, in addition to simple financial data analysis and reporting. Among the most affected jobs are: production line workers in factories, administrative support employees, receptionists, and traditional accountants. On the other hand, there are jobs that are less affected by artificial intelligence, especially those that require the direct presence of the human factor, such as nursing and medical care services, teachers, and physical therapists. However, artificial intelligence may affect these professions by reducing the number of workers or changing the work mechanism. For example, in the education sector, we have witnessed the digital transformation that has made it possible to study online and access knowledge sources more widely, but the role of the teacher remains essential in the educational process, even if the impact has occurred in how the work is performed and its mechanisms.

Addressing social gaps

So we must realize the great transformation resulting from the emergence of modern technologies, especially artificial intelligence. If we do not deal with this transformation and strive to keep pace with it, it may lead to fueling social tensions or exacerbating the problem of inequality in the labor market. Over the past years, we have witnessed how electronic devices such as computers, mobile phones, and tablets have become indispensable tools for communication, information exchange, and work, after the number of users of these devices was very limited. Our delay in keeping pace with this transformation will create a gap in our ability to develop and adapt to the rapid global changes. In addition to basic skills such as communication and collaboration skills, we will have to develop new skills related to AI security, the Internet of Things, AI ethics, cloud computing, programming, computer algorithms, and many other skills to keep pace with these changes.

On a related note, the technology sector itself has seen significant growth, including software development, artificial intelligence, and information security. This growth has been reflected significantly in several areas such as healthcare (medical technology), education (distance learning), artificial intelligence, cybersecurity, e-commerce and marketing, and the Internet of Things. These sectors have seen significant growth due to technology. The presence of artificial intelligence has also helped make many routine tasks more efficient, such as translation, linguistic verification, drafting letters and emails, etc., allowing and enhancing employees’ focus on creative or strategic tasks. It can reduce the time employees spend on data entry or repetitive tasks, but it may increase the need to learn new tools and techniques.

Economic challenges

“The lack of trained AI talent, the high cost of new technology, and the need to develop infrastructure and systems are some of the most important challenges facing companies in integrating AI. This is on the technical side, while on the societal side, it may face some challenges related to community acceptance and challenges related to privacy and security,” Al Hosani added. As the saying goes: prevention is better than cure. Therefore, we must focus on the education sector and update curricula to keep pace with this technological transformation, ensuring that the next generation is fundamentally equipped to deal with these developments. There are several solutions that can help address the challenges of job losses resulting from digital transformation and modern technology, such as providing temporary financial support to those affected, implementing vocational training and job rehabilitation programs, in addition to enhancing social security and healthcare. Partnerships between the public and private sectors must also be strengthened and laws and policies must be updated to ensure that societies adapt to these transformations. These measures will reduce the negative effects of job losses and help affected individuals adapt to changes in the labor market. Continuing education is also essential to equip individuals with the skills required in the changing labor market. The focus should be on practical training and new specializations such as data science, programming, and artificial intelligence, which helps workers stay up to date.

AI could widen the economic gap if its benefits are not distributed fairly, with those who are tech-savvy benefiting while others are negatively affected, Al Hosani added. However, the gap could be narrowed if investments are made in education and training to provide opportunities for all. AI could also improve productivity by automating routine tasks, allowing employees to focus on more creative and strategic tasks. This approach requires companies to redistribute tasks rather than eliminate jobs. The need for advanced technical skills, such as programming and data analysis, is expected to increase, and the labor market will shift towards jobs that require creativity and strategic thinking. In contrast, some routine jobs are likely to disappear or be reduced, requiring individuals to adapt to new skill requirements.

Graduates' opinion

On the other hand, Saeed bin Abdullah Al Azri, a graduate of the Vocational College in Ibri, expresses his opinion on the impact of automation and artificial intelligence on the labor market. He points out that the jobs most vulnerable to automation are routine and repetitive professions, such as those in production lines, customer service centers, and simple accounting jobs. This is because these jobs rely on tasks that can be easily programmed and taught to machines to perform, which enhances production efficiency and reduces the need for human intervention. To adapt to these changes, Saeed stresses the need to develop skills. Workers must focus on critical thinking, problem-solving, creativity, and continuous learning skills. Online education, training courses, and professional certifications in the fields of information technology and artificial intelligence are valuable tools to enhance these skills.

Al-Azri spoke about the industries that will witness the greatest growth, pointing to the technology and information industry, artificial intelligence, healthcare, and renewable energy. These sectors rely on advanced technology and require specialized skills, which provides new job opportunities for talented people. Al-Azri also touched on the potential wage gap, which AI could widen. Specialized jobs that require advanced skills will be in high demand and pay high wages, while less skilled jobs may face the risk of automation, which would increase economic inequality. As for the role of governments and companies, Al-Azri suggests the need to provide training programs for workers affected by automation, stimulate research and development in new technologies, and create policies that encourage comprehensive and permanent employment. He also stressed the importance of education in this context, as curricula should include topics related to artificial intelligence and technology from an early age, with a focus on digital skills, creativity, and critical thinking. This will enable future generations to adapt to the rapid changes in the labor market. As for the impact of technology on the quality of work and daily life, Al-Azri believes that technology can improve work efficiency and make routine tasks easier, allowing employees to focus on more creative and strategic tasks. However, it should be noted that this progress can also lead to increased pressure to consistently achieve high performance, which requires individuals to adapt to these change