I’m mixing it up this week and focusing on some AI specific market data to kick us off.
A new study from Harvard Business School, the German Institute for Economic Research, and Imperial College London Business School reveals that generative artificial intelligence tools, like ChatGPT, are already reshaping the job market. The research analyzed over one million job postings from a global freelance work marketplace between July 2021 and July 2023. It found a twenty-one percent decline in demand for automation-prone freelance jobs just eight months after the release of ChatGPT. Writing jobs were the most affected, followed by software and web development roles. Additionally, demand for graphic design and three-dimensional modeling gigs dropped seventeen percent after AI image generation tools were introduced.
A recent study by Andrew S. Parsons and his team at the University of Virginia Health found that while artificial intelligence tools like Chat GPT Plus hold promise in healthcare, they did not significantly enhance diagnostic accuracy compared to traditional methods in a trial involving 50 physicians across three hospitals. The study involved fifty physicians who were tested on six case histories. ChatGPT achieved an average score of ninety percent, while doctors using the chatbot scored seventy-six percent, and those without it scored seventy-four percent. Surprisingly, many doctors did not effectively utilize ChatGPT’s capabilities, often sticking to their initial diagnoses despite the chatbot providing potentially better alternatives. Experts suggest that artificial intelligence could serve as valuable “doctor extenders,” but current training and trust issues hinder its full integration into medical practice.
And there’s more Microsoft CoPilot skepticism. Microsoft’s ambitious investment in artificial intelligence, particularly with its AI product Copilot, faces significant skepticism from both customers and company insiders. Launched in September 2023 by CEO Satya Nadella, Copilot was expected to revolutionize productivity but has received mixed reviews. A survey by the management consultancy Gartner found that only four out of 123 IT leaders reported significant value from Copilot, while nearly seventy-five percent of employees struggled to integrate it into their routines. Furthermore, Copilot’s price tag of thirty dollars per user per month has led some companies to cancel their subscriptions, citing high costs and security concerns. Internally, Microsoft employees express doubts about the product’s effectiveness, with one executive stating that it delivers useful results only ten percent of the time.
A recent study by Microsoft and the International Data Corporation highlights that seventy-five percent of businesses now utilize generative AI, a substantial increase from fifty-five percent in the previous year. Notably, companies integrating generative AI are experiencing an average return on investment of three point seven times, with some leaders achieving up to ten point three times. The study indicates that enhancing employee productivity is a top priority, with ninety-two percent of AI users applying these tools for that purpose. However, a considerable challenge remains, as thirty percent of surveyed businesses report difficulty in finding skilled workers for AI roles.
Why do we care?
AI’s impact is undeniable, but the transition phase is rife with inefficiencies and challenges. The researchers warn that this decline could intensify competition for remaining positions and reduce pay for the still available jobs. They suggest that individuals with skills complementary to AI, such as critical thinking and creativity, may become increasingly valuable in the changing labor market.
Parsons emphasized the importance of optimizing the collaboration between AI and healthcare professionals to enhance patient outcomes and physician experience.
The decline may reflect a transition rather than outright job loss. As AI tools replace manual tasks, they demand expertise in training, managing, or customizing these systems. And that’s why we care – that’s the key opportunity to watch for.
