Image done by Ai, Futuristic Image of Manama, Kingdom Of Bahrain
AI and Automation in the GCC Job Market: Transforming the Landscape
Introduction
The Gulf Cooperation Council (GCC) region is currently witnessing remarkable technological advancements, particularly in the fields of Artificial Intelligence (AI), automation, and robotics.
These advancements hold tremendous potential for improving efficiency and productivity, but also raise concerns about their impact on the job market. According to a study by McKinsey & Company, 45% of jobs in the Middle East are technically automatable today, translating into 20.8 million full-time employees and $366.6 billion in wage income.
This means that nearly half of all jobs in the region are at risk of being replaced by AI and automation in the coming years.
Industries and Job Types at Risk
Based on extensive research, several industries and job types in the GCC region are identified as being particularly vulnerable to the impact of AI, automation, and robotics. These industries include manufacturing, transportation, construction, and administrative support.
It is estimated that approximately 25-35% of jobs in these industries may disappear as a result of AI, automation, and robotics.
The study by McKinsey & Company further reveals that the sectors most at risk of automation are manufacturing, transport, and warehousing, where routine tasks are the norm. Conversely, job roles involving tasks with human interaction, such as the arts, entertainment, recreation, healthcare, and education, have a lower automation potential ranging from 29% to 37%.
Potential Effects on Each Country
The potential effects of AI, automation, and robotics on each country within the GCC region are contingent upon multiple factors. The study by McKinsey & Company found that the impact of automation on jobs will vary by country.
For example, the UAE is expected to see the largest job losses due to automation, followed by Saudi Arabia and Bahrain. In the UAE and the wider Gulf, the study also highlighted that 93% of the automation potential is estimated to lie with jobs held by expat workers. This is because expat workers are more likely to be employed in routine, low-skilled jobs that are at a higher risk of being automated.
Potential for New Job Creation
While the integration of AI, automation, and robotics may result in job displacement within certain industries, they also present significant opportunities for new job creation in emerging sectors. The GCC region is expected to witness substantial growth in the renewable energy industry, which may generate new job prospects in areas such as solar and wind power.
The healthcare industry is also poised to expand with the aging population, offering potential employment opportunities in domains like nursing and healthcare administration. It is estimated that these emerging industries could potentially create new jobs, offsetting up to 10-15% of the jobs lost due to AI, automation, and robotics.
Conclusion
In conclusion, the advent of AI, automation, and robotics holds immense potential for transforming the GCC job market, with nearly half of all jobs in the Middle East at risk of being replaced by these technologies. According to the study by McKinsey & Company, 45% of jobs in the GCC are technically automatable, representing a significant challenge for the region.
While the precise impact of AI, automation, and robotics will depend on the country and industry, it is evident that the GCC region needs to proactively prepare for the impending changes. This includes investing in education and training programs to upskill the workforce and developing supportive policies for workers who may be displaced.
By adopting a proactive approach, the region can effectively navigate this transformative period, maximizing the benefits of AI and automation while minimizing the potential challenges.
www.ewavetec.com
Comments