Elon Musk is wrong about AI’s impact on workers: new study

American researchers recently found that artificial intelligence (AI) could leave their freelancers out of a job unless governments step in. Another study found that productivity would increase when AI is used to assist rather than replace workers, as Elon Musk predicted.

The first study shows that the job losses are not better for freelancers with higher skill levels. If anything, these workers were suffering.

AI appears to complement workers

A separate study by Boston Consulting Group (BCG) found that employees who used OpenAI's GPT-4 artificial intelligence model for specific tasks were more productive than those who did not. However, these advisors fared worse when assigned tasks that required more subtle judgment.

Some have capitalized on this trend by using AI to refine results or perform specific tasks while focusing on their areas of expertise. The study found that AI works best when BCG uses it to complement advisors' skill sets.

Overall, the studies show that freelancers need more labor protection. Also, AI tools should be used to complement human work, not to replace it. Rights groups and trade unions have criticized UK Prime Minister Rishi Sunak for ignoring AI's threat to workers.

A recent executive order from US President Joe Biden called for AI companies to study how models like GPT-4 could impact labor markets. The administration asks companies to consider ways the federal government can support workforce disruptions from AI.

But Elon says AI will take over.

The results of the study challenge billionaire Elon Musk's statement to Sunac at a high-profile AI summit in the UK last week. Musk predicts that “there will come a time when no jobs will be needed” as AI takes over the workforce.

“If you want a job, you can have a job … but AI can do everything,” Musk said.

Read more: Will AI replace humans?

The tech billionaire recently founded an AI company that pursues Artificial General Intelligence (AGI), which many consider the ultimate goal of all AI endeavors, so his statements shouldn't come as a surprise. Basically, AGI is AI with human-level sentience.

Read more: The 6 hottest artificial intelligence (AI) jobs in 2023

But a more immediate AI threat concerns knowledge workers. It remains to be seen how AI labor will affect monetary policy, as wage growth and high employment are key data points the Fed uses when deciding whether to tighten or loosen monetary policy.

If AI takes more jobs without new entrants entering the market, unemployment will increase, but jobs and positions may reach parity. However, the rising rate of unemployment depends on how the government handles the labor shortage.

Do you have anything to say about how the BCG study findings disagree with Elon Musk or something about AI's impact on workers? Please write to us or join the conversation on our Telegram channel. You can also find us on TikTok, Facebook or X (Twitter).