The ‘Godfather of AI’ says the rapidly developing technology will spike unemployment- should you be concerned?

Geoffrey Hinton, called the ‘godfather of AI’ because of his pioneering computer science work earning him a Nobel Prize in 2024, is predicting a major spike in unemployment because of the technology.

In an interview with Financial Times, (1) Hinton explained his concerns with AI and how he predicts that the capitalist system is going to create spikes of joblessness.

“It’s going to create massive unemployment and a huge rise in profits. It will make a few people much richer and most people poorer. That’s not AI’s fault, that is the capitalist system.”

Hinton explained in a separate interview with Fortune (2) that AI is pushing tech companies in particular to focus on short-term profits instead of long-term consequences. This could have a devastating effect. But what kinds of positions are at risk — and which are safe?

The jobs AI is likely to take — and leave unscathed

One area that Hinton believes will be safe from AI is healthcare, believing that this sector is massive enough to continue to need human-filled positions, according to Fortune. (3)

That said, regardless of the industry, Hinton believes that mundane tasks like simple data entry and administrative work will be taken over by AI, whereas high-skill professions will be insulated from its reach.

A report from Statistics Canada (4) reviewing experimental estimates of the technology shares a similar view with Hinton. In their paper, authors Mehdi and Frenette note that occupations such as labourers in manufacturing and utilities, welders and servers have a low-exposure level to AI — and have jobs that are not complementary with the tech.

On the other hand, data entry clerks, economists and computer programmers are highly prone to AI disruption. However, the authors note that AI will not necessarily remove these positions, but “transform” them.

Sponsored

Smart investing starts here

Build your own investment portfolio with CIBC Investor’s Edge online and mobile trading platform. Enjoy low commissions on trades and special pricing for active traders, students and young investors.

Get started today

Is AI changing the job market in Canada?

It’s hard to pinpoint exactly where and how AI is affecting the job market in Canada. But, the signs are clear that the country’s labour force is softening and youth are being hit hard.

CBC News reported back in June (5) that the unemployment rate for Canadians aged 15-24 with post-secondary education hit levels not seen since the mid-1990s (excluding the pandemic years).

The latest survey on employment from Statistics Canada shows weakness across the board as well. The unemployment rate hit 7.1% in August the agency reported, the highest rate seen since 2016 — not including pandemic years. In addition, the employment rate has fallen 0.6% since January to a low of 60.5%, a low not seen since 2018 at least.

Though it isn’t entirely clear how the job market is responding to AI, what is clear is how companies’ expectations are changing. For instance, a leaked memo from Canadian tech giant Shopify showed that all employees are required to use AI in their work. (6)

How you can prepare for the shifting work climate

While AI is changing the way many industries work and how jobs could look, that doesn’t mean you need to be left behind without a career. Here are some ways you can weather this technological change.

• Educate yourself. From Google courses to free online classes through platforms like Coursera, Canadians have no shortage of resources on becoming AI-proficient. Use them.
• Pivot your career. If you are feeling worried about the state of your job in the coming years, there’s nothing wrong with a career change to a less AI-exposed career, such as a trade like plumbing or something more hands-on.
• Communicate openly. There’s nothing wrong with discussing your anxieties with your employer if you work in a high-risk industry. Even though certain industries might be more at risk for AI disruption, your employer might have a different take than the industry norm.

Change is never easy, and the kind that affects our livelihoods can make one feel deflated and defeated. But with a growth mindset and a strong sense of adaptability, Canadians can weather these current changes and those that are still to come with AI technology.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Financial Times (1); Fortune (2); Fortune (3); Statistics Canada (4); CBC (5); Forbes (6)