The Swiftly Expanding Vocation in the U.S., Credited to ChatGPT
The AI job market has seen an impressive surge over the past two years, as reported by a study from the University of Maryland's Smith School of Business and job-tracking firm LinkUp. This analysis, dubbed AIMaps, revealed a significant "ChatGPT effect," a spike in AI-related job postings following the launch of the popular chatbot.
Anil Gupta, a professor at the Smith School, led the research and observed the analysis showed that AI job postings skyrocketed 68% in the US since the end of 2022, while overall job postings declined 17% during the same period. Adding to this trend, AI job postings on ZipRecruiter grew an impressive 124% from 2023 to the end of 2024.
LinkedIn ranked AI engineer and AI consultant as the fastest-growing jobs in the US early this year, while PwC found that jobs requiring AI skills were growing three times as fast as all jobs overall. However, Gupta noted that tech giants, such as Google, have also reduced IT job postings by 27% since the end of 2022.
AI has ushered in new types of jobs, but tech companies have also let go of employees after major AI technology investments. Google, for example, laid off workers in its Google Assistant and hardware divisions shortly after announcing an investment in AI startup Anthropic. Employers intend to downsize their workforces in favor of AI by 2030, a World Economic Forum survey found.
Gupta suggested that AI tools allow four people to complete the work of ten, as AI tools, such as GitHub Copilot, can handle 60-70% of coding tasks. While American tech giants invest heavily in AI programs, AI-related jobs are especially sought after in the consulting sector.
The AI boom coincides with broader slowdown in hiring across the job market. Companies are aiming to "do more with less," focusing closely on cost control and reviewing every function. Despite this, it is too soon to tell how the AI boom is affecting specific jobs.
AI job growth goes hand in hand with concerns regarding potential privacy and security risks. Julia Pollak, chief economist at ZipRecruiter, explained that companies must be cautious as they adopt AI technology.
In the broader context, the global AI race is gaining momentum, as evidenced by the release of DeepSeek, a Chinese startup that shook the market with an AI model costing a fraction of American competitors like ChatGPT. Its open-source approach can accelerate AI industry growth, leading to an even faster deployment of AI technology in various industries.
Microsoft and IBM are among the major tech companies investing in AI, while President Donald Trump announced the creation of Stargate, a collaboration between OpenAI, SoftBank, and Oracle aimed at investing heavily in AI infrastructure.
[1] statista.com/topics/776/artificial-intelligence/[2] mckinsey.com/articles/how-artificial-intelligence-and-machine-learning-are-empowering-businesses[3] forbes.com/sites/forbestechcouncil/2020/01/07/the-top-10-artificial-intelligence-skills-to-fuel-your-company-success-in-2020/?sh=386464951c37[4] idc.com/bytitle/artificial-intelligence-jobs-marketplace.aspx[5] mckinsey.com/featured-insights/future-of-work/where-will-the-job-market-be-in-2030
References:[1] Statista - Topics related to Artificial Intelligence[2] McKinsey & Company - How Artificial Intelligence and Machine Learning are Empowering Businesses[3] Forbes - Top 10 Artificial Intelligence Skills to Fuel Your Company's Success in 2020[4] IDC - Artificial Intelligence Jobs Marketplace[5] McKinsey & Company - Where Will the Job Market Be in 2030?
- Despite the surge in AI job postings, tech companies like Google are also experiencing a decrease in IT job postings, as reported by Anil Gupta from the Smith School of Business.
- In the consulting sector, AI-related jobs are particularly sought after, with major tech companies such as Microsoft and IBM investing heavily in AI technology.
- As the AI industry continues to grow, companies must be cautious when adopting AI technology, considering potential privacy and security risks, as advised by Julia Pollak, chief economist at ZipRecruiter.
