How AI Will Impact the Job Market by 2035
The rise of artificial intelligence (AI) is no longer a futuristic concept. Over the last decade, advancements in AI have reshaped industries, revolutionized processes, and altered the fabric of the global economy. By 2035, AI is expected to redefine the job market in ways that will significantly influence the workforce, employment trends, and how society perceives work. This article, now part of our Outrageous Predictions section in Markets, explores the anticipated impact of AI on the job market by 2035, referencing key thought leaders in the AI field such as Elon Musk, Andrew Ng, and Kai-Fu Lee.
From job automation to the creation of entirely new roles, AI's influence is both promising and daunting. In this comprehensive exploration, we will look at how AI will change various sectors, the roles most vulnerable to automation, the emerging opportunities for workers, and the challenges of navigating an AI-dominated job market. We will also present the views of some of the most influential voices in AI, as well as a case study demonstrating AI’s impact on a specific sector.
The Automation of Jobs: The Threat and Opportunity
AI’s potential to automate tasks currently performed by humans is perhaps one of the most discussed and debated topics in the field. According to a report by McKinsey Global Institute, up to 375 million jobs worldwide could be automated by 2035, representing approximately 14% of the global workforce. Jobs that involve repetitive, manual tasks or are based on data entry are at the highest risk of being replaced by machines and AI systems.
As Elon Musk, CEO of Tesla and founder of OpenAI, has often expressed, the progression of AI will lead to widespread automation that could displace many low-skilled jobs. Musk has advocated for the introduction of universal basic income (UBI) as a solution to offset the economic disparity caused by automation. This idea has sparked global discussions around how governments and societies might need to adapt to a future where machines take over a significant percentage of jobs currently held by humans.
Which Jobs Are Most at Risk?
While automation and AI are expected to impact nearly every industry, certain job categories are more vulnerable than others. Manufacturing jobs, retail workers, call center operators, and transportation professionals (such as truck drivers and taxi drivers) are considered to be in the "high risk" category.
For example, autonomous driving technology, championed by companies such as Waymo and Tesla, could eliminate the need for human drivers in the transport and logistics industry. According to Andrew Ng, the co-founder of Coursera and leading AI expert, "AI is the new electricity." He predicts that tasks such as basic customer service, inventory management, and even legal contract review are at risk of being fully automated in the coming years.
The Rise of AI-Created Jobs
On the flip side, AI is also expected to create a host of new jobs. While some roles will vanish due to automation, others will emerge as AI technologies advance and mature. The World Economic Forum (WEF) predicts that AI could create nearly 58 million new jobs by 2035, primarily in sectors requiring advanced technical skills, data analysis, and AI development. These jobs will require workers to possess a new set of skills tailored to interacting with and managing AI systems.
Kai-Fu Lee, the author of "AI Superpowers," believes that AI will fundamentally shift job structures. He suggests that while some industries will face job reductions, sectors such as healthcare, AI research and development, education, and creative professions will see job growth. AI will allow for more personalized and efficient services, creating demand for roles that involve overseeing AI-driven systems and developing innovative uses for AI in solving real-world problems.
The Importance of Upskilling and Lifelong Learning
One of the key ways individuals and industries can prepare for the impending changes brought by AI is through upskilling and lifelong learning. The workforce of 2035 will need to continuously adapt to new technologies, and educational institutions will play a vital role in providing ongoing training for workers at all levels.
Andrew Ng emphasizes the need for workers to be proactive in acquiring skills in data science, machine learning, and programming. In his view, governments and businesses should collaborate to make learning resources widely available to ensure workers are equipped to transition into new roles. "AI will change 100% of jobs," Ng notes, urging workers to embrace this shift and see it as an opportunity for career advancement rather than a threat.
Challenges Ahead: Economic Disparities and Social Impacts
Despite the potential for new jobs, AI’s impact on the job market raises serious concerns about economic inequality and social unrest. The disparity between workers who can adapt to new AI technologies and those who cannot may widen, leading to a more polarized society. As routine, low-skilled jobs disappear, the unskilled workforce may struggle to find employment in the AI-driven economy, exacerbating wealth and opportunity gaps.
Leaders in AI, including Elon Musk, have warned that without proper safeguards, AI could lead to unintended consequences in the labor market. Universal basic income (UBI) is one such safeguard being explored to support displaced workers. However, critics argue that UBI alone cannot address the systemic changes that need to occur in education, social services, and corporate responsibility.
AI and the Future of Creative Jobs
Interestingly, while many fear AI will take over creative fields, experts like Kai-Fu Lee believe that human creativity and emotional intelligence will remain areas where AI struggles to compete. Jobs in the arts, entertainment, and creative writing may see a resurgence, with AI tools being used to enhance human creativity rather than replace it entirely.
In the advertising industry, for example, AI can help generate insights from consumer data and assist in automating ad placements. However, the creative process—ideation, storytelling, and emotional connection with audiences—remains firmly in the realm of human capabilities. As AI tools become more sophisticated, they will likely collaborate with creatives rather than replace them.
Case Study: AI's Impact on the Financial Industry
One sector already seeing the transformative effects of AI is finance. In the financial services industry, AI algorithms are increasingly being used to automate trading, assess risk, and improve customer service through AI-driven chatbots.
For example, JPMorgan Chase has implemented an AI system called COiN (Contract Intelligence), which analyzes legal documents and extracts key data, a task that previously required thousands of human work hours. Similarly, companies like BlackRock use AI to drive data-driven investment strategies that help them outperform the market.
The financial industry demonstrates both sides of AI’s impact. While traders and analysts who relied on manual processes face redundancy, new roles in AI development, data science, and algorithm design have emerged. As AI systems continue to evolve, finance professionals will need to shift their focus from repetitive tasks to more strategic, AI-enhanced decision-making roles.
Preparing for the AI-Driven Job Market of 2035
By 2035, AI will undoubtedly play a critical role in shaping the job market. Workers across industries must prepare for this shift by upskilling and adapting to new roles that AI technology will create. Governments, businesses, and educational institutions will need to collaborate to ensure that the transition to an AI-dominated job market is smooth and that workers are not left behind.
The key to thriving in the AI-driven future will be adaptability. While some roles may vanish, the emergence of new, AI-enhanced roles offers hope for a more dynamic, efficient, and innovative workforce. Ultimately, AI’s impact on the job market will depend on how society chooses to harness its power, and whether the challenges it presents can be met with foresight, innovation, and collaboration.
Key Takeaways
- AI Will Lead to Significant Job Automation: By 2035, a substantial number of jobs, particularly in industries like manufacturing and transportation, will be automated.
- New Jobs Will Emerge: While some roles will disappear, AI is expected to create millions of new positions in fields requiring advanced technical skills.
- Upskilling is Critical: Lifelong learning and upskilling will be essential for workers to remain competitive in an AI-driven market.
- Economic Disparity is a Concern: The gap between AI-adapted and non-adapted workers may grow, potentially leading to greater economic inequality.
- Creative Jobs Will Persist: Human creativity and emotional intelligence will still be essential, and AI will likely enhance rather than replace creative roles.
- Financial Industry Case Study: AI is already transforming finance, automating tasks and creating opportunities for more strategic roles.
This article is native of our In Brief reports, where we explore bold forecasts for the future based on emerging trends and technologies.
