Study finds that AI is changing the careers of older people

Artificial intelligence has raised concerns that workers, especially young professionals, will be replaced by advancing technology.

But a new paper from Boston University’s Retirement Research Center says there are signs that older workers are also being affected.

Author and economics professor Jeffrey Sanzenbacher told CNBC that workers over the age of 55 in industries exposed to AI are increasingly leaving their jobs. These shifts are driven by unemployment and voluntary reasons alike, he said.

“This is a statistically significant effect,” Sanzenbacher said. “Depending on the profession, that can be quite large.”

According to Sanzenbacher’s research, AI could impact older workers’ career longevity in three ways.

Sanzenbacher noted that automation could displace older workers, prompting them to become unemployed or leave the labor force altogether.

Alternatively, the pressure of AI adoption could cause some workers to seek jobs unrelated to these new advances or quit altogether.

Alternatively, generative AI could improve productivity, allowing people to work longer, increasing wages and allowing workers to focus on more attractive jobs, Sanzenbacher said.

This study defines AI exposure based on the extent to which AI can be used to perform tasks in an occupation. It draws on data from the Current Population Survey and information on AI exposure from Tufts University’s Digital Planet Initiative, which studies the impact of digital innovation.

The study found that prior to the launch of OpenAI’s ChatGPT, older workers in roles exposed to AI were significantly less likely to leave their jobs. However, after starting ChatGPT, they were slightly more likely to leave their jobs, including losing their job.

Sanzenbacher’s research shows that older workers, who are more susceptible to AI changes, tend to be white, are much more likely to have a college degree, and tend to have higher incomes than workers with less exposure to AI.

According to research based on Digital Planet’s AI Exposure Score, the five carriers with the highest AI exposure and therefore most susceptible to change are:

Web and Digital Interface Designers Web Developers Database Architects Computer Programmers Data Scientists

The five careers with the least exposure to AI are:

Drilling and Loading Operations and Mining Workers Roof Bolters and Mining Workers Custom Painting and Spraying Workers Fiberglass Laminator and Manufacturer

This challenges the perception that older workers in physically demanding jobs have shorter career trajectories and are therefore likely to retire earlier than more educated white-collar workers.

“Exposure to AI may narrow the career length gap between low-wage and high-wage jobs,” Sanzenbacher said in the study.

Therefore, policymakers should keep the potential impact of AI in mind when considering possible changes to retirement ages, the study says.

New projections show that the trust funds that Social Security relies on to help pay for retirement benefits could be depleted by the end of 2032, according to the latest annual report by the program’s governing board.

To restore Social Security’s solvency, policymakers may choose from a variety of possible changes, including raising the retirement age. When the last major reform to the system was enacted in 1983, lawmakers chose to gradually raise the retirement age from 65 to 67.

Future reforms may consider raising the age threshold, but some experts say the change is not a short-term solution. Policymakers could also choose to raise payroll taxes on high earners, a popular move among Democrats.

“Whatever happens to Social Security next, higher-income people are likely to see their benefits cut much more than lower-income people,” Sanzenbacher said.

“Those are the people who therefore need to work longer,” he said.

Meanwhile, depending on how AI impacts the workforce, the ability of those same workers to perform their jobs may also be affected, Sanzenbacher said.

Sanzenbacher said older workers are adopting AI, but not as often as younger workers.

A recent AARP survey found that workers see AI as both a threat and an opportunity. Of the 1,015 adults aged 50 and older surveyed, 24% said they saw AI as a threat to their jobs, while 19% said they saw it as an opportunity. Meanwhile, 37% said both, according to responses submitted in March.

Another study by AARP and LinkedIn found that experienced professionals are more likely to have roles that are insulated from the disruption caused by generative AI, with 49.4% of older workers compared to 42.2% of younger workers.

Research shows that jobs for older people are likely to require skills that cannot be easily replicated by AI, such as collaboration, judgment, and leadership.

For older professionals who haven’t yet started using AI, it’s not too late, Vicki Salemi, career expert at Monster, told CNBC.com in an email.

Monster’s December WorkWatch report found that 42% of the 1,504 employees surveyed do not use AI at all. According to Monster, the most popular applications among employees who use it include basic tasks such as email, scheduling, and writing support. Some people use it for advanced tasks like coding, automation, and data analysis. Job application, including resume and cover letter. According to the research, it also includes creative works such as graphics, campaigns, and content.

Older workers may want to take a two-pronged approach to adapting to today’s workforce: gaining AI knowledge while also doubling down on their soft skills, Salemi says.

A good place to start is to learn about the AI ​​tools your employer is already using. That might help you make the most of your time for deeper thinking, she said.

At the same time, whether you want to stand out in your current role or the job you’re applying for, don’t forget to emphasize soft skills like communication, relationship building, and problem solving.

“If you can prove that you have strong soft skills and the ability to leverage new technology to evolve and grow, your candidacy may be given the green light,” Salemi said.