Covering Disruptive Technology Powering Business in The Digital Age

Written by: Izzat Najmi Abdullah, Journalist, AOPG.

Every time a revolutionary technology breaks into the mainstream, it is met with both enthusiasm and scepticism. History is littered with examples: When the steam engine redefined the industry in the 19th century, many feared it would mean the demise of traditional jobs. The Internet and smartphones also had their share of naysayers worried about their impact on employment and social norms.

Now it’s Artificial Intelligence (AI) at the centre of this age-old debate. But there is an important difference. Unlike previous innovations, AI isn’t just performing new tasks – it’s not only capable of taking over tasks traditionally done by humans, including creative ones, but also doing them faster, more efficiently, and with fewer errors.

All of this raises the urgent question: Can AI trigger an upheaval in the labour market, unlike anything we’ve seen in history?

To get to the bottom of the matter, we turned to experts from the IT industry – a sector known for its rapid adoption of the latest technologies. As a pioneering industry, it faces major challenges and opportunities with the integration of AI. We asked them about the much-discussed topic of “AI taking jobs” and explored their views on how AI could reshape the employment landscape and what this means for the future of employment in the IT sector itself.

Stating the Obvious

Rob Newell, Vice President of Customer Adoption APJ at New Relic

Their insights were revealing, but not entirely surprising. Rather than simply replacing jobs, many are of the opinion that AI will create new opportunities by automating mundane tasks, allowing IT professionals to focus on higher-value work.

Rob Newell, Vice President of Customer Adoption APJ at New Relic, emphasises that AI-powered tools are revolutionising tech operations by taking over routine tasks. This shift allows developers to concentrate on more creative and critical aspects of their work, such as testing and refining code. According to Rob, AI broadens the scope of what developers can achieve, driving innovation within the IT field rather than eliminating jobs.

Simon Ma, Senior Director & Regional Head of ASEAN at Freshworks

Similarly, Simon Ma, Senior Director & Regional Head of ASEAN at Freshworks, argues that AI is augmenting human creativity rather than taking away jobs. He notes that many IT teams are already integrating AI into their daily operations, freeing up time for strategic planning and system design. Simon sees this symbiotic relationship between AI and IT teams as crucial for maximising productivity and ensuring that IT departments remain agile and responsive to the ever-evolving demands of the digital age.

While Ian Hall, Head of Client Services APAC at Synopsys Software Integrity Group, acknowledges that AI is already handling tasks traditionally done by humans, often with greater efficiency, he views this shift as an opportunity rather than a threat. Hall believes that the rise of AI has led to the creation of new roles, such as AI engineers and prompt engineers, which didn’t exist before.

Ian Hall, Head of Client Services APAC at Synopsys Software Integrity Group

The general consensus from these experts, who speak from the perspective of IT vendors that ardently advocate for AI in their solutions, is that artificial intelligence is undoubtedly changing the way IT professionals work. But can it truly be as positive and transformative as they claim, without any drawbacks?

With AI’s ability to outperform humans in speed, accuracy, and efficiency, couldn’t there be a risk of companies exploiting this to reduce their workforce and cut costs?

Recent trends suggest this might already be happening.

The Other Side of the Coin – Job Losses Within the IT Industry

For starters, let’s begin with a question: Is this “optimism” masking a harsher reality? While industry leaders are quick to point out that AI is creating new roles, the happenings in the broader tech landscape—especially the layoffs that coincide with the recent rise of AI—hint somewhat at a different story.

We don’t need to look far. In 2023 and even into this year, we’ve seen major tech players announce substantial job cuts. Microsoft let go of roughly 1,000 employees, while Google laid off hundreds of staff members from its “Core” teams as part of a restructuring that will relocate some positions to India and Mexico. Meanwhile, Meta has laid off more than 20,000 workers.

Adding to the uncertainty, IBM announced a hiring freeze for around 8,000 roles that could be replaced by AI over the next few years, sparking concern throughout the industry. Dell and other tech giants have similarly trimmed their workforces, hinting at automation and AI as contributors to these decisions. Dell, in particular, slashed 13,000 jobs in early 2023, and it’s unclear how many more positions may be impacted this year. Additionally, sources indicate that over 135,000 employees were laid off by tech companies worldwide between January and August of this year alone.

These companies, many of which have been considered “pillars of stability” in the tech world, have cut down thousands of jobs. Although the main reasons cited in the news from tech giants like Microsoft, Google, and Meta may range from economic downturns to shifts in business strategies, AI’s role in these layoffs cannot be ignored.

This brings up an uncomfortable question: Are these job cuts a direct result of AI’s expanding capabilities? And if so, is this the reality that tech companies are hesitant to fully acknowledge? While AI is celebrated for its efficiency, especially in handling mundane and repetitive tasks, its impact is now extending to more diverse roles. So even though companies insist they aren’t replacing human workers, for businesses driven by profit, what’s really stopping them from reducing their workforce and turning to AI for greater efficiency?

The layoffs in the tech sector suggest that while AI may create new opportunities, it is at the very least also contributing to the displacement of existing jobs. This challenges the overly optimistic narrative that AI will only enhance human roles and highlights the need for a more balanced view of its impact on the workforce.

The Yin and Yang of AI in IT

As someone who has closely observed the evolution of AI over the past few years, I find myself both fascinated and concerned about its potential. The narrative around AI often oscillates between extremes – either it’s hailed as the miraculous saviour of industries or feared as the catalyst for widespread job loss. Yet, the reality, I believe, is more complex and uncertain.

AI is not merely a tool for enhancing human labour; it’s a transformative force that is fundamentally reshaping the nature of work. While it can automate tasks that were once manual, raising legitimate concerns about job security, it also opens doors to new opportunities for IT professionals. These opportunities involve stepping into roles that didn’t exist before, pushing the boundaries of technological innovation, and redefining what it means to work in IT.

However, to ignore the potential risks would be shortsighted. The very capabilities that make AI so powerful – the ability to perform tasks with greater efficiency, accuracy, and speed – are the same capabilities that could lead to significant job displacement. There’s no denying that AI has already started to replace certain roles, and as it continues to advance, it could potentially replace even more. This raises critical questions about the future: Will AI eventually take over roles that we currently consider to be safe? How many jobs will AI displace in the process of creating new ones?

The fears surrounding AI are not without merit. Change is challenging, especially when it threatens livelihoods. While AI can unlock new levels of human creativity and innovation, it also has the potential to erode the job market in ways we are only beginning to understand. The displacement of jobs due to AI could lead to severe economic and social challenges if not proactively managed. It’s essential that organisations and governments work together to implement policies, support systems, and retraining programs to mitigate the impact on those whose jobs are at risk.

As we move forward, the challenge is not only to embrace AI as a complement to human talent but also to critically assess its implications. The future of IT, and indeed many other industries, may depend on our ability to adapt and work alongside AI, but we must also be vigilant. We need to question whether the new roles created by AI will be enough to replace those that are lost and whether the benefits of AI will be equitably distributed.

In the end, while I do acknowledge the potential for AI to transform jobs in positive ways, I simply cannot ignore the possibility that AI could replace human roles to a much greater extent than we currently anticipate.

Only time will tell.

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