Artificial intelligence reshapes employment, and companies may benefit more than employees

Artificial intelligence is good for companies with high ‘exposure’, but whether it is good for employees remains to be seen.

Artificial intelligence is developing rapidly, and the emergence of ChatGPT has accelerated the application of artificial intelligence technology in daily operations of enterprises. There are also more and more studies on how to quantify the impact of artificial intelligence on enterprises.

A new study examines the “exposure” of employees at large U.S. companies to artificial intelligence (that is, the extent to which they are affected by artificial intelligence. The researchers’ assessment of “exposure” is based on tools such as ChatGPT completing certain tasks more efficiently. task ability) were compared. According to the research results, the higher the "exposure" of the company, the future cash flow, labor costs and market valuation will show a positive trend.

Since technological advancement and enterprise employees can complement each other, enterprises with higher complementarity between labor costs and generative artificial intelligence will create more cash flow.

The new research was led by Andrea L. Eisfeldt, professor of finance at UCLA Anderson School of Management, and Gregg, assistant professor of finance at UCLA Anderson School of Management. ·Gregor Schubert and Miao Ben Zhang, assistant professor of finance and business economics at the University of Southern California Marshall School of Business.

Among the 15 large companies most affected by ChatGPT listed by researchers, IBM (IBM) topped the list, followed by Intuit (INTU), Qualcomm (QCOM), and Fraser Financial Services (Fiserv, FISV) and NVIDIA (NVDA).

Arvind Krishna admitted that IBM has been greatly affected by artificial intelligence. He recently told Bloomberg in an interview that of IBM's 26,000 non-customer-facing employees, "30% will be replaced by artificial intelligence and automation within five years."

Microsoft (MSFT) ranks ninth among large companies most affected by artificial intelligence. Microsoft CEO Satya Nadella will freeze pay for full-time employees this year, citing the company's need to invest in "major platform transformation for a new era of artificial intelligence," according to a memo published by Business Insider.

According to ChatGPT’s assessment of the tasks required to perform in various occupations, of the 15 large U.S. companies most affected by artificial intelligence, eight are in the information industry and six are in the manufacturing industry. The top ten also include SPGI, AVGO, VZ and MMM companies.

Among the 15 companies least affected by artificial intelligence, two are in the food service industry, seven are in the retail trade industry, three are in the transportation and warehousing industry, and two are in the manufacturing industry. Starbucks (SBUX), McDonald's (MCD), Dollar General (DG), Target (TGT) and Walmart (WMT) round out the top five.

Three finance professors wrote in the report: “The premise of our study is that employees in more ‘exposed’ companies perform tasks that are more effective than those performed by employees in less ‘exposed’ companies (and industries). tasks are easier to accomplish by generative artificial intelligence.”

Eisfeldt told Barron’s: “Whether the value of AI to businesses is positive or negative depends on the ‘exposure’ of a company’s employees to AI and how well the company utilizes the technology. The ability to progress.”

This new study finds that the occupations most affected by artificial intelligence are actually those with a high proportion of non-routine cognitive tasks, while physical tasks are relatively unaffected.

IBM told "Barron's" that the company is actively recruiting and has thousands of positions open. "IBM is carefully considered when recruiting and focuses on positions that can generate revenue. We are recruiting without direct contact with customers or Very picky when it comes to technical positions.”

Intuit, Nvidia and Microsoft declined to comment on the research. Starbucks, McDonald's and Dollar General could not immediately be reached for comment.

Three finance professors wrote in the report: "We have not yet formed our own position on whether generative artificial intelligence can replace or complement the highly 'exposed' workforce, but we have Research shows that in various industries, if a company has a higher proportion of highly 'exposure' positions, the value of the company will increase."

This new study shows that AI will benefit companies with high ‘exposure’, but whether it will benefit employees – that is, whether it can actually replace the labor force in the above-mentioned industries – remains to be seen.

When asked what employees at companies like IBM should take away from the research, Eisfield said artificial intelligence can help employees be more productive. While companies are adjusting their workforce mix, the ultimate impact on the overall workforce may be beneficial. ”

Artificial intelligence tools can take over mechanical or repetitive tasks, allowing employees to focus on more valuable areas such as human creativity and insight, Eisfield said. For companies, some jobs may be more Attractive and more valuable, as long as employees are willing to adapt to changes in responsibilities.”

Written by Steve Rossignol-Cortez

Editor | Guo Liqun

Copyright Notice:

Reprinting this article requires the authorization of "Barron's" (barronschina). For the English version, see the report "AI Is Reshaping Jobs. Here Are the Companies to Watch." on May 17, 2023.

(The content of this article is for reference only and does not constitute any form of investment or financial advice; the market is risky, so investment must be cautious.)

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