The future is here, and for some, the news isn’t good.
The big picture suggests that generative artificial intelligence stocks will benefit handsomely from this groundbreaking technology, but the losers aren’t as obvious as one might think.
If one might believe this is the cue to jumping head first into becoming an artificial intelligence programmer then think again.
Ironically enough, many of these jobs will, yes, be taken by the very technology itself, and we have received confirmation that this trend is likely to occur from management that makes the decisions of which staff to pay.
Why pay humans when an algorithm can do the same job?
Recently, a prominent generative AI executive stated that coders are at risk of losing jobs in the next 2-4 years.
This executive originates from one of the leading companies in the space, so it’s not like some fake expert offering his two cents either.
During an interview, this executive suggested that countries like India, where many IT jobs get outsourced, might be in trouble in the next few years because firms can just adopt AI tools to write, read, and review codes.
Even labor laws can’t prevent this giant replacement of human labor.
Tech giants like Google and Microsoft have shared similar concerns, though they argue that AI will create new jobs and humans need to co-exist with the technology.
Here is a quick summary of what I learned.
Outsourced coders up to level three programmers will be gone in the next year or two.
That's because new generative AI models "are like really talented grads" and will replace those who sit "in front of a computer" and never get noticed.
So it affects different models in different countries in different ways in different sectors.
In the United States, the two-week notice is real, and coders and engineers at international IT firms are at risk once Silicon Valley figures out they are expendable.
I must say that this might be the job apocalypse that many have been predicting.
The belt-tightening going on in Silicon Valley is just the beginning.
Next, we will see AI get rid of even more lucrative positions.
Google (GOOGL) CEO Sundar Pichai and Microsoft (MSFT) CEO Satya Nadella have also previously shared concerns about potential job loss due to AI.
Pichai and Nadella have repeatedly said that AI will eliminate grunt work.
In large corporations, many workers do just that – grunt work.
Not everyone is making strategic decisions that affect the direct fortunes of the company like Nadella and Pichai. Not everyone is Elon Musk.
AI will replace humans and CEOs like Pichai and Nadella are just being polite because they preside over a massive workforce.
They cannot come out in public and say that everyone will get fired. If they did that, workers would protest, revolt, and unionize as fast as possible. At the bare minimum, they will lay down flat and barely move a finger, resulting in company morale tanking.
At the stock level, this will boost revenue, margins, and profitability to a new golden era of tech stocks.
Workforces are about to get even leaner, and I am not talking about just firing the chief diversity officer or the chief climate change officer. The chief vegan foods officer for the office cafeteria was fired in the last round of cuts. The next round of cuts will start migrating up the value chain and it will be oh so painful.
