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AI Revolution: Enhancing Efficiency Without Job Losses
AI is increasing customer service efficiency without resulting in widespread job losses. Companies such as Alorica and IKEA use AI to supplement human workers and increase productivity. Economists believe that AI will generate new job opportunities while transforming existing ones.
With an AI translation tool at their disposal, Alorica representatives can easily assist customers in 200 languages and 75 dialects worldwide.
The introduction of AI has not only empowered workers to effectively handle diverse customer needs, but it has also debunked the myth that automation will result in widespread job losses. Companies such as Alorica and IKEA demonstrate how AI can revolutionise the workplace without displacing employees.
Nick Bunker, an economist at Indeed Hiring Lab, believes that while AI will impact various jobs indirectly, it is unlikely to lead to mass unemployment. History has shown that technological advancements, such as AI, can create new job opportunities while enhancing overall productivity.
AI has been around for decades, and recent milestones such as OpenAI's ChatGPT have captured the public's attention in 2022. Despite concerns that AI will replace human jobs, evidence suggests that the technology will complement workers, making them more efficient rather than obsolete.
The White House Council of Economic Advisers reported that there is little evidence to support the idea that AI will significantly reduce overall employment. Historically, technology has increased productivity, stimulated economic growth, and resulted in the creation of new job categories in unexpected ways.
According to MIT economist David Autor, 60% of the jobs held by Americans in 2018 did not exist in 1940, but were created as a result of later technological advancements. Challenger, Grey & Christmas, an outplacement firm that monitors job cuts, has yet to see significant layoffs due to labor-saving AI.
While concerns remain about AI's threat to certain job sectors, examples such as Suumit Shah's implementation of a chatbot named Lina at Dukaan in India demonstrate AI's potential. Shah's move significantly improved response times and issue resolution while cutting costs by 85%.
Furthermore, research from various institutions revealed that job postings for writers, coders, and artists decreased following the implementation of ChatGPT. However, AI integration does not necessarily imply job loss; it can improve efficiency, allowing individuals to focus on more creative tasks.
IKEA's introduction of a customer-service chatbot in 2021 exemplifies this approach. Rather than downsizing, IKEA retrained customer-service staff to handle complex queries, demonstrating how AI can complement human work rather than replace it.
Studies by Stanford University and MIT illustrated that AI-based assistants can enhance productivity, with the least experienced workers benefiting the most. For example, at an Alorica call centre in New Mexico, AI tools enabled agents to handle calls more efficiently, resulting in significant time savings per call.
Alorica's use of real-time voice language translation demonstrates how AI can improve customer service without reducing job opportunities. This tool facilitates seamless communication between customers and agents in multiple languages, thereby improving service quality without the need for external hires.
AI is enhancing efficiency in customer service without causing widespread job losses.
Companies like Alorica and IKEA are leveraging AI to complement human workers and improve productivity.
Economists suggest that AI will create new job opportunities while transforming existing roles.
Source: AP NEWS