Title: Beyond Automation: The Job Skills AI Won’t Be Able to Mimic Subtitle: Indeed economist discusses new data on which skills AI will replace and how it impacts workers. Resource URL: https://knowledge.wharton.upenn.edu/podcast/wharton-business-daily-podcast/beyond-automation-the-job-skills-ai-wont-be-able-to-mimic/ Publication Date: 2024-11-05 Format Type: Podcast Reading Time: 10 minutes Contributors: Allison Shrivastava;Dan Loney; Source: Knowledge at Wharton Keywords: [Artificial Intelligence, Workforce Trends, AI-Assisted Skills, Labor Market Analysis, Generative AI in the Workplace] Job Profiles: Talent Acquisition Manager;Human Resources Manager;Chief Technology Officer (CTO);Chief Operating Officer (COO);Chief Executive Officer (CEO); Synopsis: In this podcast, podcast host Dan Loney and economist Allison Shrivastava discuss Indeed's data on AI's role in the workplace, emphasizing the integration of AI to assist specific skills while retaining a strong need for human problem-solving and physical presence. Takeaways: [AI is unlikely to fully replace jobs but will assist specific skills, particularly in technology-heavy sectors like accounting., Human problem-solving and physical presence remain critical components of many roles, such as nursing and childcare., Approximately 25% of workplace skills may be AI-assisted, while two-thirds of skills are unlikely to be impacted by AI., Job seekers should focus on upskilling and learning how to integrate AI into their work to remain competitive., Generative AI’s potential for replacement is skill-specific, with challenges in problem-solving and execution requiring human input.] Summary: Indeed's research reveals that while AI will significantly impact workplace skills, it is unlikely to replace entire jobs due to the multifaceted nature of roles. The study grouped skills into three categories: theoretical, problem-solving, and physical presence. It found that AI excels at theoretical knowledge but struggles with tasks requiring problem-solving and human interaction, such as those in nursing and childcare. Approximately 25% of workplace skills may be AI-assisted, particularly in technology-focused sectors like accounting, where repetitive or analytical tasks may be automated. However, roles requiring judgment, context-specific decision-making, and physical engagement, such as childcare and healthcare, will remain predominantly human-centric. Even in accounting, tasks like budget planning and risk assessment will still require human involvement due to their complexity and reliance on organizational knowledge. Generative AI's effectiveness is highly contingent on user-generated prompts, underlining the importance of training workers to leverage AI as a tool rather than viewing it as a replacement. Upskilling to understand and integrate AI into workflows is critical across industries, especially in sectors like software development and finance. AI's evolution is expected to complement human roles, focusing on integration rather than elimination over the next decade. Content: ## Introduction This episode is sponsored by the Wharton School at the University of Pennsylvania. Recently released data from a leading online employment platform indicates that, although organizations are increasingly interested in integrating artificial intelligence (AI) into workplace operations, they continue to place substantial value on human skills. Consequently, widespread job displacement may be less severe than earlier forecasts suggested. An economist from the aforementioned employment platform joined our host to discuss these findings in detail. ## Research Framework ### Skill Categorization The study evaluated three categories of skills to determine the extent to which AI might augment or supplant them: 1. Theoretical Knowledge: Conceptual or domain-specific understanding 2. Problem-Solving Abilities: Analytical reasoning and creative solutions 3. Physical Presence: Tasks requiring in-person engagement or manual dexterity No occupation was identified as fully replaceable by AI; instead, the technology is poised to augment certain skill sets. ## Key Findings ### Theoretical Knowledge AI demonstrates strong performance in retrieving and synthesizing theoretical knowledge. However, output quality remains highly dependent on the precision of user inputs or prompts. Effective prompt formulation requires specialized skill, suggesting that human expertise will remain essential in guiding AI systems. ### Problem-Solving Abilities While AI can assist with structured analytical tasks, complex problem-solving still relies heavily on human judgment. The study revealed that AI’s efficacy varies by the nature of the problem, with current models requiring iterative refinement of prompts to produce acceptable results. ### Physical Presence Roles necessitating direct human interaction—such as caregiving and medical treatment—are unlikely to see substantial AI substitution. Although generative AI could draft protocols or care plans, the implementation and interpersonal aspects remain firmly within the human domain. ## Sector-Specific Insights - Accounting: Identified as the profession most susceptible to AI assistance, particularly for routine or data-intensive tasks. Even so, critical functions—such as risk assessment and budgeting decisions—demand deep organizational knowledge and ethical judgment that AI cannot yet replicate. - Nursing and Healthcare: AI tools might generate preliminary care programs, but the complexities of patient interaction and real-time problem resolution ensure that nurses retain primary responsibility for patient care. - Child Care and Manual Labor: Sectors requiring continuous physical presence and personal engagement display minimal potential for AI substitution. - Manufacturing and Automotive: Although industrial automation is prevalent, the study focused explicitly on generative AI rather than general automation technologies. Data on AI’s impact in manufacturing remains inconclusive. ## Quantitative Highlights - Approximately 25 percent of evaluated skills exhibit a high likelihood of AI assistance or replacement. - Roughly 66 percent of skills are deemed unlikely to be affected by AI in the foreseeable future. - No entire job category was classified as at risk of complete replacement. ## Implications for the Workforce The findings underscore the importance of viewing roles as composites of distinct skills rather than monolithic occupations. As AI integration accelerates over the next decade, professionals across all sectors—particularly in technology-intensive fields such as software development and accounting—are advised to upskill in AI literacy. Mastery of prompt engineering and familiarity with generative AI tools will be invaluable assets. ## Conclusion Emerging evidence suggests a collaborative future in which AI augments human capabilities rather than displacing them wholesale. Employers and employees alike should prepare for a landscape in which AI assists with specific skill sets while humans continue to drive complex decision-making, interpersonal interactions, and creative problem-solving.