On the Edge of Tomorrow

Summary

Artificial Intelligence (AI) is frequently identified as one of the most promising areas of technological development. The ability to generate efficiencies, identify hidden patterns or insights, and automate tasks combine to create a transformative technology that may fundamentally alter both the labour market and business operations. Although progress in the field of AI has fluctuated since its inception, we are increasingly witnessing its potential across the economy and labour market. Prior to the 2008 recession, for many businesses the notion of AI and, in some cases, even basic automation existed more as a concept rather than a tool. Yet, following this period of significant economic downturn, businesses around the world began actively looking to AI and applying it to real-life challenges, which ended up boosting productivity and labour demand. Here, AI began to develop roots in our economy and its development accelerated when combined with increased network connectivity, the availability and affordability of powerful sensors, the advent of big data, and the exponential growth of computational power.

The growing reliance on AI—even in the rudimentary sense of automation and assistive technology—brings with it not only opportunities but significant questions about labour market disruption. This includes concerns about labour augmentation and changes related to skill needs, capabilities, and the tasks and responsibilities of workers.

In this context, ICTC’s AI Labour Augmentation Model showcases which occupations are most likely to be augmented by AI13. This is done by examining how prone to augmentation a number of occupations are or will be in the future. While the overall “risk” of augmentation increased notably for many roles since the 2008 recession as more businesses began leveraging AI and assistive technology, there are a number of important nuances as to which jobs will be impacted, who is working in these roles, and what correlation this has with wages. For example, although many low-wage jobs, such as customer-service representatives or entry-level administrative roles can be augmented by AI, augmentation does not rest solely with occupations in low-wage brackets. In fact, ICTC’s AI Labour Augmentation Model finds that a number of high-wage occupations, such as auditors or financial analysts, for example, are equally susceptible to augmentation.

AI brings immense potential to reshape the Canadian labour market and transform business practices. However, as AI continues to disrupt on many levels, it is critical to develop strategies to ensure that its benefits are not divisive; that it is deployed and used responsibly. This guiding ethical framework coupled with the growing importance and demand for explainability must be at the core of every discussion on AI. This ethical framework is currently an area in which Canada excels and can continue to showcase leadership on a global level. Maintaining this momentum is crucial.

In the process of assessing and understanding the potential benefits of AI, labour market changes and shifting skill needs are at the centre of the debate. Investigating and understanding labour augmentation and rapidly-developing skill needs brought on by AI will be crucial. The knowledge derived from this research is needed today to develop the training and upskilling pathways that Canadians can utilize to prepare themselves for the future. This understanding combined with advancing Canada’s leadership in the space of ethical and explainable AI form the ingredients needed for a Canadian AI strategy that is inclusive, transparent and truly innovative.