Marketing Scoops: Artificial Intelligence Is Already Causing Disruption And Job Losses At IBM And Chegg

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Twenty-five percent of jobs will be negatively impacted over the next five years, according to a new report by the World Economic Forum. In a study, New York City-based investment bank Goldman Sachs predicts that the fast-growing mass adoption of AI will impact 300 million jobs.

We are now seeing the effects of helpful but disruptive technology. Chegg CHGG 0.0%, an educational company, and IBM have both announced that AI will cause a change within their respective organizations. Chegg saw its shares fall in value. IBM will enact hiring freezes and allow attrition without recruiting new personnel, as AI will take over their jobs.

Shares in online learning company Chegg plunged after it was one of the first organizations to admit that AI affected its business model. Chegg recognized that students were turning to OpenAI’s ChatGPT for help. The AI alternative hurts Chegg’s financial situation as its shares fell nearly 50% on Tuesday morning....Story continues....

By: Jack Kelly

Source: Artificial Intelligence Is Already Causing Disruption And Job Losses At IBM And Chegg

Critics:

The contemporary world economy has brought many changes, overturning some previously widespread labor issues. At the same time, some longstanding issues remain relevant, and other new ones have emerged. One issue that continues despite many improvements is slave labor and human trafficking. Though ideas about universal rights and the economic benefits of free labor have significantly diminished the prevalence of outright slavery, it continues in lawless areas, or in attenuated forms on the margins of many economies.

Another difficulty, which has emerged in most societies as a result of urbanization and industrialization, is unemployment. While the shift from a subsistence economy usually increases the overall productivity of society and lifts many out of poverty, it removes a baseline of material security from those who cannot find employment or other support. Governments have tried a range of strategies to mitigate the problem, such as improving the efficiency of job matching, conditionally providing welfare benefits or unemployment insurance, or even directly overriding the labor market through work-relief programs or a job guarantee. Since a job forms a major part of many workers' self-identity, unemployment can have severe psychological and social consequences beyond the financial insecurity it causes.

One more issue, which may not directly interfere with the functioning of an economy but can have significant indirect effects, is when governments fail to account for work occurring out-of-view from the public sphere. This may be important, uncompensated work occurring everyday in private life; or it may be criminal activity that involves clear but furtive economic exchanges. By ignoring or failing to understand these activities, economic policies can have counter-intuitive effects and cause strains on the community and society.

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