[AI Era, Jobs Are Changing] The 'AI Employee' Working 365 Days Brings Labor Innovation

More Jobs Are Becoming Replaceable by AI
210,000 Youth Jobs Lost Over the Past Three Years
Jobs for People in Their 50s Increasing, Mainly in AI-High-Exposure Industries
Experience Becomes Key, Strengthening the Role of Older Workers

As artificial intelligence (AI) replaces employees in the workplace, job-related issues are becoming a global concern. In the United States, job losses due to AI are already becoming a reality. However, while those who have already secured jobs are enjoying productivity gains, there is growing concern that AI will become a "double-edged sword," benefiting some but threatening young people who have yet to find employment.

At Amazon in the United States, job cuts are already becoming visible. The company plans to cut about 14,000 jobs, mainly in management, by streamlining work through the introduction of generative AI. Through automation, Amazon expects to reduce new hires by approximately 160,000 by next year, and ultimately aims to automate up to 75% of its workforce. Other companies in various industries, including JPMorgan Chase, Goldman Sachs, Ford, and Salesforce, have also announced white-collar workforce reductions or indicated that further cuts may occur in the future.

However, there are not only pessimistic outlooks regarding the spread of AI. Daron Acemoglu, Nobel laureate in economics and professor at the Massachusetts Institute of Technology (MIT), stated, "If companies use AI solely as a tool for reducing labor costs and automating tasks, jobs will decrease. But if AI is used to complement and enhance human abilities, it could lead to increased productivity and higher wages."

In South Korea, where the working-age population is shrinking rapidly due to accelerated aging, there are significant concerns about the disruptive effects AI may bring. The prevailing view is that the already prolonged youth unemployment crisis will worsen with AI. However, the increased adoption of AI, robots, and humanoids is expected to drive changes in the rigid domestic labor market.

Artificial intelligence image. Provided by Pixabay

AI Replaces Jobs for Young People

The jobs being replaced by AI are mostly basic tasks such as document processing and inventory management, which require little skill or experience. The problem is that these are primarily jobs for young people, leading to concerns that youth unemployment will worsen.

According to the Bank of Korea, over the past three years, 210,000 youth jobs have disappeared, and of these, 208,000 were in industries highly exposed to AI. Since the launch of ChatGPT, youth employment in computer programming and system integration and management, publishing, professional services, and information services has decreased by 11.2%, 20.4%, 8.8%, and 23.8%, respectively.

In contrast, jobs for those in their 50s have increased, mainly in industries highly exposed to AI. Oh Samil, head of the Employment Research Team at the Bank of Korea’s Economic Research Bureau, explained, "AI easily replaces standardized tasks mainly performed by less-experienced young workers, while tasks requiring tacit knowledge and social skills based on experience are complemented by AI." He also predicted, "Rather than simply reducing staff, companies are likely to pursue more sustainable strategies, such as nurturing talent able to collaborate with AI, establishing AI collaboration systems, and redesigning job roles."

AI Is Transforming Job Structures

As AI-based process and office automation spreads, existing job structures and deployment methods will need to change. It is expected that companies will increasingly evaluate employees based on their ability to perform tasks and the potential to leverage experience, rather than on seniority or age. In human resources and labor management, where fixed retirement ages and job assignments have long been the norm, the introduction of AI is likely to drive the need for both job redesign and changes in employment structures.

In particular, the experience of skilled workers will become more important in tasks such as quality control, safety assessment, anomaly detection in processes, and data validation. While AI fills the speed and repetition aspects of work, humans will move to final decision-making, approval, and supervision stages. This shift is expected to strengthen the role of experienced and older workers, leading to positive effects from AI adoption in terms of extending employment for older workers (raising the retirement age).

At the same time, companies must address the challenge of introducing AI without reducing hiring or resorting to restructuring. There is a growing call for new employment models where job retention and AI utilization are not in conflict but complement each other.

Lim Youngtae, head of the Employment and Social Policy Division at the Korea Employers Federation, said, "By developing job roles suitable for older workers, we could see an increase in AI-related positions for seniors." He added, "Given the current labor structure, where employment flexibility is limited, job transitions require labor-management agreement, so measures are needed to encourage union support for such changes."

AI Utilization Can Overcome Confusion Over Extending Retirement Age

AI is also expected to play a diverse role in ongoing discussions about extending the statutory retirement age. The intuition and judgment of older workers, built up through years of on-site experience, are valuable assets for companies. With the addition of AI skills, these workers can play a key role in bridging experience and technology.

Experts advise that older workers should not be relegated to less important roles but instead be provided with learning opportunities and environments to become professional technicians partnering with AI. Yoon Changhee, senior researcher at the National Information Society Agency, suggested, "A generational collaboration job model is possible, where the extended retirement generation provides direction and standards, while the younger generation leads execution and innovation." He added, "The public sector and large corporations should take the lead in designing and experimenting with such models."

Park Jisoon, professor at Korea University, pointed out, "To address the high-cost structure of employing older workers, it is necessary to redesign job roles and compensation to allow for re-employment after retirement." He also emphasized, "It is urgent to provide retraining so that older workers can use AI to improve work productivity."