Is Artificial Intelligence a threat to the blue-collared industry?

Artificial Intelligence (AI) is transforming the world we live in, and it is becoming increasingly integrated into different sectors of the economy. With the advancements in machine learning, natural language processing, and robotics, AI has the potential to revolutionize the blue-collar industry. However, the widespread adoption of AI in this sector is also raising concerns about its impact on the workforce.

The Rise of AI in the Blue-Collar Industry

With the advancements in AI technology, blue-collar jobs are now being automated, leading to increased productivity and efficiency. According to a report by the McKinsey Global Institute, up to 30% of activities in 60% of occupations could be automated. For instance, in the manufacturing industry, AI-powered robots are being used to assemble products and perform quality control checks, reducing the need for human labor. The New World Robotics report shows an all-time high of 517,385 new industrial robots installed in 2021 in factories around the world. This represents a growth rate of 31% year-on-year and exceeds the pre-pandemic record of robot installation in 2018 by 22%. 

AI is also being used to optimize supply chain management by analyzing data to identify inefficiencies and bottlenecks. This has led to a reduction in transportation costs, improved inventory management, and better customer service. Additionally, AI-powered machines are being used in the construction industry to improve safety and accuracy. For example, drones are being used to survey construction sites and inspect structures, reducing the risk of human error.

The Concerns about AI in the Blue-Collar Industry

Despite the benefits of AI, there are concerns about its impact on the blue-collar workforce. The integration of AI-powered machines is leading to job displacement, as machines are increasingly replacing human workers. This can lead to increased unemployment, reduced wages, and income inequality. According to a report by McKinsey Global Institute, up to 375 million workers worldwide may need to switch occupations or acquire new skills by 2030 due to automation and AI technologies.

Another concern is the skills gap that is emerging as a result of the adoption of AI. Workers who do not have the necessary skills to work with AI-powered machines are at risk of being left behind. This can lead to a mismatch between the skills demanded by the labor market and the skills possessed by workers, resulting in increased inequality, and reduced social mobility.

The Future of the Blue-Collar Industry with AI

The future of the blue-collar industry with AI is both exciting and uncertain. While the integration of AI is leading to increased productivity, efficiency, and safety, it is also leading to job displacement and a skills gap. However, there are steps that can be taken to mitigate these risks.

One approach is to invest in education and training programs that focus on the skills needed to work with AI-powered machines. This will help to bridge the skills gap and ensure that workers are equipped to thrive in the new economy. Additionally, there is a need for policies that support workers who are displaced by AI-powered machines. This can include unemployment insurance, retraining programs, and job placement services. Additionally, it could benefit to focus on the development of new jobs that are created due to the integration of AI.

The rise of Artificial Intelligence is changing the job market, and blue-collar workers may be particularly vulnerable to job loss due to automation. By upskilling and reskilling, exploring new job opportunities, focusing on skills that are hard to automate, and advocating for policies that protect workers, individuals can prepare for the changing job landscape. It is important for workers to take proactive steps to ensure that they are not left behind in the age of automation.

The article has been written by Moiz Arsiwala, Co-Founder and CTO, WorkIndia