As AI innovation drives unprecedented change, Dr. Leonora Risse reminds us how critical it is to navigate this new economy fairly. Dr. Risse, a preeminent economist on the AI frontier, warns that AI will soon upend thousands of jobs. He thinks some sectors are more insulated from this shift than others. She speaks to the critical need for a workforce trained in AI partnership. This helps keep workers competitive in a rapidly evolving economy.
Dr. Risse’s perspectives are especially timely as youth unemployment continues to be a major challenge. She points out that young people tend to experience the most intensity of the labor market shocks. This makes it all the more important that we prepare them for the challenges to come. In a recent video, Dr. Risse spoke with a big smile to the camera while tackling very serious topics. Her upbeat demeanor and get-things-done attitude underscored how transformative AI could be if appropriately governed.
The Impact of AI on Employment
Dr. Risse believes AI will take over, or fundamentally change, most occupations. Not all careers will succumb to artificial intelligence and generative AI in this way. This trend is evident as those entering the healthcare and community services sectors can expect continued job growth with an aging population. The need for touchpoint personal interaction will lead this growth.
She stated, > “The care and community sector is growing, particularly as a result of the aging nation. We need humans. We need people in those sectors.”
This outlook is in line with the larger mood from industry executives. They know that AI is not the answer in positions where empathy, emotional intelligence, and human connection are critical.
Further, Dr. Risse does a great job clarifying that some industries are going to be more disrupted than others. Chief Executive Matt Comyn has said that companies should start to shrink the size of their workforces. At the same time, some others are ready to boom. He mentioned, “I think in some areas, it’s reasonable to say the workforce will be smaller.”
Our chief economist explains why staying on top of these dynamics is key for America’s workers getting ready for the future economy.
Equitable Transition to AI Integration
Dr. Risse believes the best way to prepare for AI is to take a strategic approach to bringing tech into the workforce. To do this, she argues, businesses and government must work together to make this transition easier. If they succeed, workers will still see large productivity increases without losing their jobs.
“Productivity is about shifting our time away from the lowest value activities and the lowest value tasks that can be done by automation or AI or computers, and reallocating our time towards the most valuable uses,” she remarked.
This vision for an equitable transition focuses on reskilling and upskilling workers, enabling them to adapt to new roles that leverage their unique human capabilities alongside AI technologies.
Dr. Risse also believes that fostering critical thinking and problem-solving skills will be essential in preparing the workforce for future challenges. Highlighting the importance of skilled workers, she stated, > “If you could put in front of me people who are really skilled, critical thinkers, problem solvers, I’ll take as many of them as I can possibly hire.”
This sentiment echoes a growing recognition among employers of the need for human input in areas where machines cannot replicate nuanced decision-making.
Preparing for Future Job Markets
The crux of Dr. Risse’s argument is focused on youth unemployment and what that will mean for their future job markets. Young people are disproportionately impacted during moments of economic upheaval and are more likely to experience job-loss volatility and uncertainty. So, creating strategies to nurture them is incredibly important.
Young people need to develop skills matched to the quickly evolving needs of the workforce, particularly in industries that are least at risk of automation. Dr. Risse remarked, “Young people tend to be the group that experience the greatest volatility in the labour market.”
With this understanding, educational institutions and policymakers can better prepare youth for meaningful careers in an economy increasingly influenced by AI.
