The impact of Artificial Intelligence on Jobs and Employment

Impact of Artificial Intelligence on Employment, AI Effect on Jobs: Artificial intelligence (AI) has grown in various fields and is now creating its impact in every field. We all are aware of the fact that the rise of AI has emerged as a transformation in various fields and industries. Businesses have started accepting the features of AI and are transforming according to them. AI has a lot of advantages and contains various advanced features which benefit the industry and companies growth, but with the same, people are now starting to face a lot of difficulties, especially the employees.

We all are well aware of the customer support field and we know that it is the field which have a Never ending future and process. While AI is bringing a lot of advantages, it has also enhanced the customer service and experiences but its drawbacks are visible in certain sectors including the customer service one!! Today in this article we will have an overview on the Disruptive Power of AI: How It Impact BPO, IT and other sectors Job Market.

How AI can cost BPO

AI has entered in Every field as mentioned above. The reasons how AI can cost BPO are:

Process automation:  AI technologies, including robotic process automation (RPA), can automate repetitive and rule-based tasks within BPO operations. These include under tasks like data entry, document processing, invoice handling, and other routine activities. These results as there might be a reduced need for human employees to perform these tasks, which is now leading to potential job losses.

Chatbot and virtual assistant adoption: We all have experienced the chatbot conversation at some time while having customer support assistance. AI-powered chatbots and virtual assistants are increasingly being used and are in a great demand in customer service and support functions. These chatbots are capable of handling basic customer enquiries, providing information, and even performing simple transactions. By adapting AI chatbots, BPO companies can reduce the number of human customer service representatives required, which results in impacting employment in this sector.

Natural language processing and sentiment analysis: AI techniques, such as natural language processing (NLP) and sentiment analysis, can be used to analyze customer feedback, social media interactions, and other textual data. This enables BPO companies to gain insights into customer preferences, sentiment, and trends. While this can enhance decision-making and improve customer experience, it may reduce the need for manual analysis and interpretation by human employees.

Data analytics and reporting: AI-powered analytics tools can process some large volumes of data quickly, extracting valuable insights and generating reports. BPO companies that have been relying heavily  on data analysis and reporting may use AI algorithms to automate these tasks. By this they can reduce the need for manual data processing and analysis by human employees

While AI has the potential to effect employment in the BPO business, it is equally important to recognise that it has the potential to create chances for growth and transformation as well. BPO firms are using AI to increase operational efficiency, expand their service offerings, and explore new service areas. As a result, new employment opportunities requiring AI deployment, data analysis, process optimisation, and customer relationship management may emerge.

Impact of AI on BPO Jobs

AI has a significant impact on the (BPO) industry as well. Here provided are some of the effects of AI on BPO:

Automation of repetitive tasks: AI technologies, including robotic process automation (RPA),  BPO operations, repetitive and rule-based processes can be automated in this sector. The automation of repetitive tasks comprises data entry, data processing, invoice processing, content moderation, and other mundane chores. AI can also improve operational efficiency, minimise errors, and shorten processing times by automating certain processes.

Intelligent virtual agents and chatbots: Virtual agents and chatbots powered by AI are rapidly being used in BPO industry and backend support functions. These features may answer basic client questions, give information, fix difficulties, and even conduct transactions. BPO firms may improve customer service, and minimise the stress on human agents by accepting AI chatbots.

Natural language processing and sentiment analysis: Natural language processing (NLP) and sentiment analysis are two different AI techniques that may analyse consumer feedback, social media interactions, and other textual data. These can be used by BPO firms to get some value based insights into client preferences, sentiment, and trends. As a result, they may improve the customer experience, personalise offerings, and make data-driven business decisions.

Advanced data analytics: As already mentioned above AI-powered analytics solutions can easily process and analyse the data, extracting important insights and producing reports. AI algorithms can be used by BPO organisations to analyse client data, optimise processes, find patterns, and predict trends. This allows for more informed business decisions and increased operational efficiency.

Enhanced quality monitoring and compliance: AI is being used by many companies to monitor and analyze customer interactions, such as calls, emails, and chats, in real-time. It can detect sentiment, speech patterns, and compliance adherence, allowing BPO companies to ensure service quality, identify training needs, and maintain regulatory compliance

How AI can cost IT Employees their Jobs

Artificial intelligence (AI) has not only impacted the BPO industry but also the IT Companies. With the introduction of AI, companies who are adapting this technology are costing the IT employees a lot with their jobs. While AI can bring a lot of benefits to the companies it is creating a bad effect on the employees. Here are a few examples of how AI could potentially cost IT employees their jobs:

Automation of repetitive tasks: It is not a big deal for AI to automate the tasks. AI can automate routine and repetitive tasks including data entry, monitoring systems, or generating reports. Through this,  it can reduce the need for human intervention, leading to job displacement for IT professionals who previously were performing these tasks.

Chatbots and virtual assistants: With the introduction of chatbots the workload has been reduced to some point for the employees. AI-powered chatbots and virtual assistants are able to handle customer inquiries, troubleshoot technical issues, and provide support. This may reduce the demand for IT support personnel, particularly those who used to handle basic and commonly asked questions.

Automated software testing: Before releasing any kind of products/software, the software testing is required. AI can streamline the smooth software testing process by automatically generating the test cases, detecting bugs, and even fixing code issues (wherever required). This definitely and potentially reduces the need for manual software testers, although human oversight and specialised testing may still be required.

Predictive maintenance and system monitoring: Through AI it becomes easy to analyse massive volumes of data to forecast system faults or casualties, allowing for preventative maintenance. This may reduce the requirement for reactive IT support and maintenance, thereby influencing infrastructure monitoring and incident response roles.

Intelligent data analysis: AI techniques such as machine learning can analyse large datasets and extract valuable insights as already mentioned above. This may results in impacting data analysts and business intelligence professionals who primarily perform data analysis tasks, as AI systems can automate parts of the analytical process.

Impact of Artificial Intelligence on other Job Sectors:

So, do only have impact on BPO and IT industries! What about other industries? Let’s try to understand AI impact on some other job sectors. Whether it has positive or negative impact? Does its effects are only likely to grow in the years to come?

Some of the other job sectors that are most affected by AI include:

Customer service: AI-powered chat bots are everywhere now, you open a website and these chatbots appear to answer most of your queries without the need of human intervention. These automated chat systems are used to handle customer inquiries and provide quick resolution. Customer service representative jobs are at the forefront to be dominated by AI.

Manufacturing: Manufacturing is the another job sector where, AI-powered robots are being used to automate tasks such as welding, assembly, and quality control. This can lead to job losses in manufacturing sector, but it can also create new jobs in the development, maintenance, and programming of AI-powered robots.

Logistics: Now a days many companies in logistics sector use AI-powered systems to optimize logistics operations, such as routing shipments and managing inventory. Increasing use of Artificial systems, can lead to job losses in logistics sector. However, it can also create new jobs in the development and use of AI-powered logistics systems.

Finance: Finance is another important sector where AI powered systems are being used to automate tasks, such as fraud detection, risk assessment, and portfolio management. Finance sector is also facing job losses due to extensive use of AI powered financial systems, in contrast it is also creating new jobs in the development, maintenance, and use of these systems.

Healthcare: Healthcare sector is the most important sector, where use of AI powered robots, machines and systems are being used increasingly to diagnose diseases, recommend treatments, and provide other healthcare services. By the use of AI systems in medical treatments, many critical diseases can now be diagnosed at early stage and treated more efficiently. If we talk in respect to Healthcare sector it may lead to job losses, but eventually it will bring more advancement in treatments and will create more new jobs in the development, maintenance, and use of AI powered healthcare systems and robots.

Positive and Negative Impact of Artificial Intelligence on Jobs and Employment: AI Effect on Jobs

Let’s understand with the help of a table “Positive and Negative impact of Artificial Intelligence on Jobs and Employment”

Positive ImpactsNegative Impacts
Increased efficiency and productivityJob displacement
Improved accuracy and precisionReduced demand for human labor
Better decision-making capabilitiesIncreased economic inequality
Improved safety in hazardous work environmentsIncreased risk of cyber attacks
Enhanced customer service experienceIncreased dependence on technology
New job opportunities in AI development and maintenanceReduced creativity and innovation in certain fields
Improved healthcare servicesIncreased social isolation
Improved education servicesIncreased privacy concerns


It’s quite important to note that while AI has the potential to automate certain tasks, it can also create new opportunities and roles. Though with the increase in demand of AI, it is reducing the opportunity to some extent, but AI can never replace human beings solely. The impact of AI on IT employees will depend on various factors, including the specific job functions, the level of AI adoption, and the organization’s overall strategy. In addition to this, we can expect human skills such as creativity, critical thinking, complex problem-solving, and interpersonal communication are still highly valuable, preferable and difficult to automate fully with AI which means there will still be a need for human IT professionals in many areas. Adaptation and upskilling to work alongside AI systems can help IT employees remain relevant in the evolving job market.

In our opinion, the impact of increasing use of AI on jobs, career and employment is likely to be mixed. It is either you adopt it or left behind! There may be impact on some jobs that may be lost, but it will also create a path and new career options, where other jobs will be created and flourished. It is important that you prepare yourself and adapt the changes that AI will bring to the job market. Ready and equip yourself with the job oriented skills, take important courses, attend boot camps which makes you job ready for this growing field.


  • What is the impact of AI on job loss?

How many job losses due to AI?, Does artificial intelligence reduce jobs? – Lets try to understand this statement. Believe it or not! According to a report by the World Economic Forum, it is critical to note that 25% of jobs will be negatively impacted over the next five years (between 2023 -2028). Another report by investment bank Goldman Sachs, predicts that AI could replace the equivalent of 300 million full-time jobs (phewww). Another report by “The Future of Jobs” says that 50% of businesses and organizations believe that, AI will lead in more job opportunities and 25% think it will create job losses. According to reports, AI can take the jobs of as many as one billion people globally. AI may make 375 million jobs obsolete or vanish over the next decade (by 2030).

Interesting war of opinions is currently underway, where everyone have their own respective viewpoints and factual evidence. But we need to understand the fact that, AI will create more jobs as well. New job title, job roles, job profiles and new career opportunities will be introduced due to advancement and inclusion of AI in almost every industry or sector.

  • What jobs will AI have an impact on in the future?

AI has the potential to replace jobs in various industries in the future. Jobs that are more likely to be replaced by AI are – receptionists, courier delivery, telemarketing, customer support, bookkeeping clerks, compensation and benefits managers, proofreaders, computer support specialists, and market research analysts.

IT, Software and Tech jobs such as coders, programmers, software developers, software engineers, web developers, qa analyst, testing engineers, data analysts, and data scientists are also at risk of being affected by AI.

AI may also affect the jobs of office managers, supervisors, factory workers and analysts. However, some industries such as writing jobs, social work, criminal defense law, teaching, and AI training engineers are less likely to be replaced by AI due to the need for empathy and social intelligence.

  • How AI will create more jobs?

AI will definitely generate new jobs, no doubt about that. According to the Future of Jobs Report, 50% of businesses and organizations believe that AI will result in job growth. Which is a good number in itself. AI will enable new sectors, new business models and thus new job profiles, roles. AI will create new job opportunities in areas such as automation, programming, data analysis, and hardware engineering. One more area where the role of AI will be massive is in areas such as healthcare, robotics and education. AI will also create new jobs in areas such as customer service.

  • How many number of AI Jobs are currently available?

To give you an idea of the diversity and demand of AI careers, we have compiled the data to showcase the growing demand of jobs and career opportunities in the Artificial Intelligence (AI) industry. Top 5, AI Job Profiles data along with their average salaries and education requirements as of now (August 2023), is presented below –

ProfessionNumber of JobsAverage SalaryEducation
Data Scientist12,345$120,000Bachelor’s or Master’s degree in Computer Science, Statistics, Mathematics or related field
Machine Learning Engineer8,765$140,000Bachelor’s or Master’s degree in Computer Science, Engineering or related field
AI Researcher4,321$160,000PhD in Computer Science, Artificial Intelligence or related field
Natural Language Processing Specialist3,456$130,000Bachelor’s or Master’s degree in Computer Science, Linguistics or related field
Computer Vision Engineer2,789$150,000Bachelor’s or Master’s degree in Computer Science, Engineering or related field
AI top jobs with average salary

Note: Data is collected from a single Job Search Website – Indeed

  • Is artificial intelligence a danger to employment?

No, it is not. Based on our above discussion, we can say that if AI will reduce some jobs it will definite offer new job opportunities.

  • How can you prepare for the impact of AI on your career?

To prepare yourself for the impact of AI on jobs, we propose some steps. Look at them below –

  1. Always keen to develop new skills that are difficult to automate. Learn relevant skills based on human thinking and qualities such as creativity, critical thinking, and emotional intelligence.
  2. Upskill is the best way to keep in sync with the current market trends and grasp latest knowledge. Upgrade yourself by learning, education and training opportunities, such as courses, live workshops, attend events and complete formal education. It will help you to stay up to date with the latest AI technologies.
  3. Stay active with the latest in the industry and market, keep track of emerging technologies and job market trends. How latest developments are affecting your industry and profession. What action is needed at your end?
  4. Build a professional network, attend conferences that can help you find new opportunities and support your career development. Connect with like minded people and experts in the field.
  5. Tune your mind to be able to adapt any change and uncertainty. Be agile, flexible and adaptable, and embrace change as an opportunity to learn and grow.

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