19 Mar Impact of AI
Kevin Loux Presenting to the Charlotte Executive Leadership Council Combined Working Team on March 8th 2024
AI’s Growing Influence on Charlotte’s Workforce: Insights and Action Steps
In a joint research project with the Charlotte Regional Business Alliance, Charlotte Works recently shared a presentation with the Charlotte Executive Leadership Council on March 8th, providing a comprehensive overview of Artificial Intelligence’s (AI) impact on our local economy and workforce. Here are some key insights and data from the presentation, along with additional thoughts on how AI is shaping the future of work. The full deck referenced is available here: AI Overview 3.8.24
AI Impact on Charlotte’s Economy
Charlotte ranks 15th among major metros for AI exposure, indicating a significant impact on our local economy. Industries such as information, finance and insurance, and manufacturing are among the most exposed to AI, with the finance and insurance sector having an average job salary of $161,621 and an AI exposure percentile of 74%
Demographic Exposure
AI’s impact is not uniform across demographics. Research from the Brookings Institute indicates that men hold 71% of the occupations most impacted by AI. However, research from NBER and Goldman Sachs suggests 56-81% of occupations most impacted by AI are held by women. Charlotte Works’ analysis of this research suggests that jobs held by Men are more likely to require AI as a skill in the future, but jobs that are at the highest risk of being fully automated by generative AI technologies are predominately held by women. The top occupations impacted explicitly by AI in the research were telemarketers and proofreaders and Copy markers. Both occupations are around 60-70% female, and generative AI can do about 95% of these job responsibilities.
Occupational Exposure
Certain occupational groups in Charlotte, such as computer and mathematical occupations, production, and business and financial operations, are highly exposed to AI. For example, computer and mathematical occupations have a median hourly rate of $52.38 and an AI exposure percentile of 91%. Occupational group analysis aligns with Brookings’s research, with the most impacted groups employing more men, but this impact is not reflective of the potential for job elimination.
Productivity and Job Creation
AI adoption can increase annual worker productivity by 2-3%. Historically, technology-driven job creation has accounted for 85% of job growth over the last 80 years. This trend is expected to continue, with AI transforming jobs rather than eliminating them. The data suggests that while a majority of the jobs that existed in 2020 did not exist in 1940, there were still more jobs for occupations that did exist in 1940 today than there were in 1940. Additionally, with demographic shifts and a declining population projected, some automation and role elimination could become an essential part of continuing a functional economy. [1]
Call to Action
To build a resilient workforce, it’s crucial to focus on upskilling talent to adapt to new roles influenced by AI. Additionally, supporting policies that enhance access to talent, such as improvements to school systems and childcare options for working parents, is essential. If workforce partners do not promptly and appropriately respond to generative AI, it has a solid potential for further widening inequality and creating potentially unfixable divides in income inequality. Alternatively, if workforce partners are early adopters and bring a strong sense of social responsibility to adoption, AI could help to bridge inequities and create a more fair and level playing field for all. If you have questions about what this will look like for you as a business, job seeker, or community partner, reach out to Charlotte Works to discuss how we can ensure adoption advances our vision that the Charlotte region is home to a thriving workforce system generating economic prosperity for all.
Conclusion
AI is undeniably shaping Charlotte’s workforce and economy. By understanding its impact and taking proactive steps to adapt, we can ensure a thriving future for our community in the AI era.
A special thanks to all who participated in this joint research project, including:
Adrienne Hua, Lead, Principal Economic Researcher – Charlotte Regional Business Alliance
Akofa Dossou, Senior Economist – Charlotte Regional Business Alliance
Ryan Nelson, Data Analyst – Charlotte Works