Artificial intelligence (AI) to replace jobs
August 28, 2018 Category China News Round-up, Weekly
China’s labor market must be well-prepared to adapt to challenges brought by the rapid development of artificial intelligence, which is expected to replace 40 million to 50 million full-time jobs in the country within the next 15 years, according to a report by the China Development Research Foundation (CDRF) and Sequoia Capital China. By 2030, automation will replace one-fifth of the country’s jobs in the manufacturing industry, and if the process of automation accelerates, nearly 100 million workers will need to change their field of work, the report said. “AI will greatly free humans from repetitive jobs and cultivate creative minds,” said Neil Shen, Founding and Managing Partner of Sequoia Capital China.
“This means work will shift from being labor-centric to innovation-driven. More talents will devote their time to scientific discovery and technological innovation, and dedicate their efforts to the enrichment of the world.” This is a blessing for jobs featuring creativity, but a curse for employees with repetitive work. The report noted that by 2027 there will be 9.93 million employees in the Chinese financial industry, but 22% of the jobs in banks, 25% in the insurance market, and 16% in the capital market will be eliminated because of repetitive work. For the remaining employees, working time will be reduced by 27% due to AI. Lu Mai, Vice Chairman and Secretary General of the CDRF, said the country must be prepared to adapt to the changes and meet the challenges. “If we decide to follow the path toward a future with AI, we must emphasize human capital investment,” Lu said.
According to a report on AI in 2017, China’s core AI industry scale reached USD5.6 billion in 2017, representing more than 15% of the global total. By 2020, that scale will surpass USD22 billion, with a 65% annual growth rate, higher than the global average, which is 60%, the China Daily reports.
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