How AI (Artificial Intelligence) Is Reshaping The Job Market

Do you know that Kenya’s artificial intelligence (AI) sector received funding worth KSh 1.95 billion in 2023? Also, a 2024 report revealed that many CEOs of leading Kenyan organisations are eager to adopt generative AI technologies because they are optimistic that AI has the potential to drive innovation and revolutionise industries. These statistics indicate that AI is no longer a futuristic concept. It is a reality that Kenyan employers must embrace to lead a digital transformation that is reshaping the job market.

What is Artificial Intelligence (AI)?

Artificial intelligence, popularly referred to as AI, is a technology that enables machines and computers to simulate cognitive functions associated with the human mind, like learning, problem-solving, creativity, and decision-making. The most popular example of AI in Kenya today is ChatGPT. It is a prompt-dependent artificial intelligence technology that can facilitate problem resolution, decision-making, and the generation of creative images. 

AI has become increasingly popular in the global and Kenyan job market because we have entered the Fourth Industrial Revolution. This is the next phase of the manufacturing sector’s digitisation, driven by disruptive trends like AI, robotics, and human-machine interaction. As such, the integration of AI in Kenyan workplaces will mark one of the most significant shifts of our time, transforming how people work and introducing a new era of human-machine partnership. Employers must embrace the AI-driven job market shift to stay competitive, boost efficiency, and increase financial returns. 

Key AI Technologies Reshaping the Job Market

1. Generative AI

Generative AI is a technology that uses machine learning (ML) to create new material. An example is ChatGPT, which uses ML to generate quality code, text, and images. Businesses can use generative AI to perform tasks, including developing personalised marketing campaigns, competitor analysis, and translating customer service communication into different languages. Similarly, organisations can use the technology to improve internal processes by creating individualised learning materials for employees and generating website code.    

2. AI Assistants 

AI assistants are technologies that combine automation and generative AI to interact with users like humans would. These smart tools are becoming increasingly popular in modern workspaces because they support decision-making and reduce wait times by providing quick responses. An example of an organisation that has embraced AI-assistance is Absa Bank Kenya,  which has introduced a virtual assistant named Abby that provides 24/7 customer support and improves user experience.

3. Agentic AI

Agentic AI comprises autonomous systems that allow AI technology to act as an agent that performs complex tasks. These AI agents can complete multi-step processes, extract information from external data sources and retain memory. For instance, organisations can use agentic human resource management AI to facilitate resume analysis and autonomous employee request responses. Such applications of the technology improve task completion efficiency and enhance performance.

Characteristics of the New Job Market

Task Automation

One of the main characteristics of the emerging AI-driven job market is task automation. Incorporating AI-powered tools into workspaces allows organisations to automate routine tasks like document processing and customer engagement. This enables employees to focus on higher-level deliverables that add more value to business operations, improving overall productivity.  

Streamlined Workflows

In the AI-augmented job market, business tasks are broken down into discrete components, which are optimally allocated to employees and AI to streamline workflows. This collaborative arrangement facilitates role specialisation whereby an organisation’s employees provide context and judgement while AI facilitates pattern recognition, processing, and execution. Leveraging the complementary strengths of human workers and AI enhances efficiency and productivity, allowing businesses to meet their objectives faster. 

AI-Centred Job Roles

The integration of Artificial Intelligence into business operations is creating new job categories that are changing the labour market. For instance, the human-AI task execution partnerships within organisations are changing the skills required for many roles. Employers are now more focused on hiring candidates who exhibit contextual understanding, critical evaluation, and the ability to guide AI systems. Therefore, it is becoming increasingly important for businesses to hire tech-literate personnel across professions to keep up with industry trends. 

On the other hand, as AI systems continue to advance, the demand for specific skills will decline in the job market. For instance, businesses will be able to fully automate routine tasks like basic analysis, research, data entry, and content creation using AI, rendering associated roles redundant. Recent economic reports reveal that AI advancements are expected to displace 9 million jobs by 2030. Nonetheless, as AI takes centre stage in the new job market, it is simultaneously projected to create 11 million new roles, leading to a net gain of 2 million jobs. 

Therefore, the full-scale adoption of AI in the new labour market will increase rather than decrease available opportunities for job candidates. However, businesses will focus more on hiring individuals who exhibit human capabilities like emotional intelligence, adaptability, problem-solving and interpersonal skills. Furthermore, organisations will replace redundant positions with AI-specific roles like tech developers, AI specialists and data scientists to maximise productivity in AI-driven workspaces. 

Accelerated Innovation

As AI becomes increasingly popular in the new job market, it will accelerate innovation by improving the workforce’s creative abilities. For instance, AI can process vast data within short periods, making it faster to identify market opportunities. Hence, organisations relying on Human-Artificial Intelligence workforce, can take advantage of AI’s accelerated data processing abilities to allow employees more time to focus on creating innovative business solutions. Some organisations are already using AI technologies to identify the most relevant skills for future workforces, allowing them to stay ahead of the talent acquisition curve and creating more opportunities for higher-order innovation. 

How Businesses and Employers Can Adapt to the AI-Driven Job Market

Workforce Adaptation (Reskilling)

The AI-driven job market requires businesses to leverage existing employee skills to facilitate workforce adaptation and meet the demands of the emergent employment landscape. Through strategic workforce planning, employers can implement progressive talent development approaches that upskill existing workers. The process necessitates that businesses audit existing roles, identify the skills employees require to develop, pinpoint the skill gaps, and then develop training programmes that empower workers to operate in AI-driven workspaces. Industry leaders like Safaricom are already engaging in workforce adaptation through initiatives like the One More Skill campaign, which is allowing the telcom giant to reskill, upskill and multiskill its workforce. 

Investing in training programmes that facilitate internal AI literacy and the development of soft skills is important because it builds workforce capacity and prepares employees for effective human-AI collaboration. Such empowerment minimises workers’ resistance to AI integration, facilitating optimal exploitation of human-AI collaborations to maximise business gains in the new job market.

Long-Term Planning 

Businesses interested in maintaining a competitive advantage in the emerging AI-driven job market should implement long-term, rather than one-off, AI adaptation strategies. They should assess their needs and identify operations requiring automation to inform the development of strategic AI integration plans. The AI strategies should align with organisational objectives and focus on solving existing problems to ensure the associated investments maximally benefit the evolving businesses. Furthermore, the long-term approach to AI adaptation should encompass feedback mechanisms that help organisations re-evaluate AI strategies over time to ensure they keep up with industry trends.  

Creating Dependable Data Infrastructure

Successful AI integration into businesses heavily relies on the availability of proper data infrastructure. This is because AI tools function best when they can access high-quality and organised data. Hence, organisations must create dependable data systems that provide the correct information to AI assistants to enjoy the cost-saving and improved efficiency benefits associated with AI integration.  

Embrace Hybrid Roles

Economic reports reveal that the skills required to work in most organisations will change by 70% before 2030 as many workplaces become AI-augmented. Therefore, businesses must design and implement systems that facilitate effective human-machine collaboration to thrive in the AI-driven job market. This requires employers to assess workflows and employee experience, as well as implement ethical data management frameworks to create systems that support highly productive human-AI workplace partnerships.

Concluding Thoughts

Yes! AI is a highly disruptive technology that is reshaping the job market exponentially. It demands that businesses and employers alter their systems to guarantee sustainability over the long term. While the change may be scary, it is necessary! 

Businesses and employers who embrace human AI-partnerships will not only survive but also lead the future of work in Kenya. So, since the impact of AI on your business is inevitable, how prepared are you to adapt to the changing job market?