There has been considerable hype and fear around the impact of AI on jobs and careers. Reports of CEOs planning headcount reductions due to AI and estimations of the ability of current AI to replace many of the tasks that make up jobs today have people understandably concerned. Since the release of the paper GPTs are GPTs (https://openai.com/index/gpts-are-gpts/) last year, I’ve been trying to understand what that means for Canada. Our economy has traditionally been in resource extraction and manufacturing although our modern economy is dominated by real estate, rental and leasing, making up 13% of our GDP (Economy of Canada. (2024, September 3). In Wikipedia. https://en.wikipedia.org/wiki/Economy_of_Canada). So what kind of exposure does Canada have to AI job disruption and displacement?
In a recent study that should make Canadian businesses take notice, researchers have uncovered the staggering impact of artificial intelligence (AI) on the nation’s labour market. The newly released report, “Experimental Estimates of Potential Artificial Intelligence Occupational Exposure in Canada,” paints a vivid picture of the impending transformation that should have every Canadian professional sitting up and taking notice (https://www150.statcan.gc.ca/n1/pub/11f0019m/11f0019m2024005-eng.htm).
The findings aren’t surprising but they should be creating much more conversation. We could see 60% of Canadian employees suddenly finding their roles dramatically reshaped by AI. This is higher than research on the American workforce that uses a similar research methodology. The implications go far beyond the traditionally automation-prone roles, with nearly half of these positions highly complementary to the latest AI technologies.
The study’s authors, Tahsin Mehdi and René Morissette, have meticulously mapped out the industries that will bear the brunt of this shift. Professionals in the fields of finance, healthcare, education, and even the vaunted tech sector should brace for a fundamental rewrite of their job descriptions. Conversely, the construction and hospitality industries appear relatively insulated from the AI onslaught.
The study does has some positive elements. The researchers have identified a critical nuance—the “complementarity-adjusted AI occupational exposure index.” This metric suggests that many highly educated roles may actually benefit from AI, leading to a transformation rather than outright job losses. Despite this, the message is clear and consistent with other studies. The Canadian workforce will need to adapt or risk obsolescence.
As the authors emphasize, the long-term effects of AI on employment remain uncertain. Yet one thing is clear: the Canadian workforce must be prepared to navigate this uncharted territory. Businesses that fail to anticipate and address the implications of AI will risk being out-competed by companies that use AI effectively.
For most companies, the time to act was over a year ago, but Canadian companies can still act now. The future of work is being re-defined, and the professionals who can harness the power of AI will thrive in the years ahead.
Reference
https://www150.statcan.gc.ca/n1/pub/11f0019m/11f0019m2024005-eng.htm
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