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AI shifts job market leverage toward older workers

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How AI’s Unlikely Ally Could Help Older Workers Thrive in a Changing Job Market

Artificial intelligence has long been viewed as a job killer, but new research suggests that it could tip the scales in favor of older workers. A survey of chief executive officers from around the world reveals that many companies plan to shift their workforce towards mid-level and senior positions, potentially displacing junior roles.

This trend is not unprecedented; automation replaced low-skilled jobs in manufacturing during the 1980s. However, AI’s ability to augment human productivity has created new opportunities for experienced workers to drive business growth. CEOs are now looking at mid- and senior-level employees to drive productivity, said John Romeo of Oliver Wyman, highlighting the critical thinking and problem-solving skills that come with on-the-job experience.

While younger workers may be affected by this shift, companies will need to invest in retraining and upskilling mid-level employees to manage the increasingly agentic workforce created by AI. “They need to learn the company and the job,” says Helen Leis, global head of leadership and change at Oliver Wyman. This is crucial, as a study from Stanford University found that young workers were 16% more likely to lose their jobs in the most AI-exposed fields.

IBM’s decision to triple entry-level hiring in the US this year is an outlier, but even that move may not be enough to mitigate the risks of relying on AI agents. The message seems clear: older workers will need to adapt quickly if they want to stay relevant. However, this shift also raises concerns about the nature of work itself. As firms commit to workers less and less, what happens when AI becomes a more efficient replacement for human talent? “Firms’ commitment to workers is weaker and weaker,” warns Teresa Ghilarducci, a labor economist at the New School.

One potential silver lining is that this shift could lead to more nuanced conversations about ageism in the workplace. For too long, older workers have been seen as liabilities rather than assets. By recognizing their value, companies may begin to address some of the systemic inequalities that prevent people from working beyond a certain age.

As AI continues to transform the job market, it’s clear that no one will be immune to its effects. But perhaps – just perhaps – this is an opportunity for older workers to reclaim their place in the workforce and demonstrate the value of experience in a changing economic landscape. The next few years will be crucial in determining whether AI serves as a lifeline or a liability for mid-level employees, and what it means for the future of work beyond 2025.

Reader Views

  • MJ
    Mara J. · long-term traveler

    This shift in favor of older workers is welcome news for those of us who've been observing the AI job market closely. However, companies must not underestimate the importance of social and emotional skills in mid-level employees, which AI still struggles to replicate. While CEOs are eager to augment human productivity with AI, they should also prioritize developing empathetic leaders who can navigate complex organizational dynamics and manage the workforce that's increasingly dependent on technology. It's a delicate balance between leveraging tech and retaining humanity in the workplace.

  • IR
    Iván R. · tour guide

    The AI shift is just a Band-Aid solution for companies trying to maintain productivity without investing in their workers' actual growth and development. While mid-level employees may benefit from having more responsibilities, this trend ignores the fact that older workers often bring outdated attitudes and methodologies to the table. To truly thrive in an AI-driven job market, companies need to prioritize upskilling and reskilling programs that focus on creativity, adaptability, and digital literacy – skills that aren't necessarily tied to age or experience.

  • TC
    The Compass Desk · editorial

    The AI job market shift is a double-edged sword for older workers. On one hand, they'll benefit from their accumulated experience and skills, which AI can't replicate yet. But on the other hand, this trend raises questions about what exactly these workers will be doing with their new "senior" titles. Will it simply mean overseeing younger colleagues who handle more mundane tasks? Or will companies invest in meaningful upskilling programs that leverage both human expertise and AI capabilities to drive innovation?

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