#United States #College Park #ChatGPT #DeepSeek #AI Jobs

AI Job Growth: The Rise of ChatGPT and Its Impact on Employment

The landscape of the job market is transforming rapidly, especially within the realm of artificial intelligence (AI). Since the introduction of ChatGPT at the end of 2022, AI-related job postings across the United States have surged at an impressive rate. According to a recent analysis from UMD-LinkUp AI Maps, the number of AI job postings increased from 29,509 in Q4 2022 to 49,577 in Q4 2024, marking an astonishing 68% growth. This development starkly contrasts a 17% decline in overall job postings within the same timeframe.

This white paper, titled "Diffusion of AI Jobs Across Economic Sectors," brings to light these remarkable findings. Researchers, including Anil K. Gupta, a Strategy professor at the University of Maryland's Robert H. Smith School of Business, attribute this growth to the rising demand for AI skills in various industries. Interestingly, while general job vacancies have decreased, this trend does not imply that companies are hiring less; rather, the pace of hiring appears to have slowed.

The labor market is experiencing a softening, with the unemployment rate rising from a historic low of 3.4% in 2023 to 4.3% as of July 2024. Notably, the IT sector has seen a significant drop in job postings, plummeting from 354,070 in Q4 2022 to 258,706 by Q4 2024—a decrease of 27%.

Emerging Trends

The researchers highlight a pronounced "ChatGPT effect" driven by the technology's adoption in various sectors. As industries begin to embrace AI, they are primarily seeking specialists skilled in this area rather than adhering to traditional IT roles. This evolution is attributed to the transformative capabilities of AI technologies, which provide enhanced efficiencies and capabilities across diverse sectors.

The emergence of DeepSeek, another AI tool, is expected to further accelerate these trends. Its rise signifies a validation of the potential of open-source large-language models, aligning with Mark Zuckerberg's predictions. As open-source technologies continue to infiltrate the market, the costs associated with foundational AI models are expected to decline, facilitating swifter deployment of AI tools in multiple sectors, including software development, manufacturing, finance, and agriculture.

For sectors directly linked to AI, a closer analysis reveals distinct trends. The following sectors showcase the highest intensity in AI job postings:

• - Information: This sector, comprising primarily software publishers, dominates AI job postings, accounting for over 62% of listings. AI job intensity stands at 3.24%.
• - Professional, Scientific, and Technical Services: This sector has also witnessed significant growth in AI postings, with a notable increase from 13.5% in Q1 2018 to 24.0% by the end of 2024.
• - Finance and Insurance: Since ChatGPT's launch, AI job postings surged by 62%, while traditional IT job postings decreased by 33%. This sector’s growth underscores a strategic investment in AI roles over general IT positions.

Conversely, sectors that handle more complex physical work, such as healthcare and social assistance, exhibit minimal AI job postings. Together, these sectors represent 28% of all job postings but only contribute a mere 1.5% to AI job postings. This discrepancy is attributed to the labor-intensive nature of the work in these sectors, which isn't compatible with AI advancements at this time.

Conclusion

As companies increasingly pivot towards utilizing AI technologies, the job landscape is on the cusp of a significant transformation. While traditional roles may decline, the demand for AI-skilled professionals is set to soar. The next few months will likely reveal clear changes in job postings data reflective of this ongoing transformation.

With innovations like DeepSeek paving the way for a more widespread adoption of AI across various sectors, it’s essential to monitor these trends closely. The current evidence presents a compelling narrative of how AI technologies could redefine not just industry operations, but the very nature of employment as we know it.