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Artificial Intelligence Has a Huge Impact on The Labor Market

Abdullah Hadi bin Saharudin (1918837)

AHAS Kulliyyah of Islamic Revealed Knowledge and Human Sciences

Muhammad Aiman Rasyidi bin Rosli (2017115)

Kulliyyah of Engineering

Muhammad Asyraf Abdul Jameel (2217737)

Kulliyyah of Information Technology

International Islamic University of Malaysia

LEED 1301: English for Academic Writing

Section 39

Madam Yante Aleeza Binti Apisah

26 November 2023
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Artificial Intelligence Has a Huge Impact on The Labor Market

Artificial Intelligence (also known as AI) is the ability of a robot or computer to

perform various tasks that require human intelligence to do such as learning, reasoning or

decision making. According to McCarthy (1955) “The science and engineering of making

intelligent machines, especially intelligent computer programs”. AI enhances the speed and

effectiveness of human efforts, progressive learning methods enable AI to adapt by letting the

data handle the programming. AI helps systems learn by looking for structures and patterns in

data.

The United Nations proposal of sustainable development, specifically its eighth goal

(Decent Work and Economic Growth), aiming not only for an environmentally friendly

source of revenue, but also the actualization of bright future where workforces’ welcome

differences for the sake of innovation through the agency of technological advancement (The

Global Goals, n.d.). For that, SDG 8 demanded the implementation of AI in the labor market

for its huge benefit on the economic sector generally and employment precisely. To

accomplish this, AI researchers, manufacturers, and all industries must bear in mind that

technology is to serve not to manipulate humans and his society. Bostrom and Judkowsky

(2020) listed responsibility, transparency, auditability, incorruptibility, and predictability as

criteria for the computerized society to think about.

The use of AI is implemented in almost every labor market these days, from customer

services to supply chain organization which help businesses optimize their supply chains by

requesting demand, reduce cost efficiency and improve the delivery time. This has left the

society wondering what impact AI cause on human society in the future will, the usage of AI

depends on whether humans demand a faster and efficient way of working without worrying

about employee workload. However, if humankind is already satisfied with the current way
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of living, then they can continue by doing so without having to worry about catching up with

new AI technology.

Even though the industrial revolution came to us a long time ago and human

employment is still in stable situations, it is reasonable for many individuals to be wary of

AI’s capabilities to reduce job opportunities due to its differences compared to earlier

technological developments. According to Bruun and Duka (2018), AI’s machine-like

effectiveness and human-like imaginative ability is disrupting all range of jobs because it

could perpetually learn new information and upgrade itself to generate solutions in various

work fields. Anything from previous technological advancement has no capability to function

like this. However, it should be noted that the study was to propose mitigation steps to

counter the worst-case scenario of AI dominating human jobs. So, with cautious regulations

and policies implementation, jobs employment could not be negatively affected by AI

Therefore, AI can bring positive impacts on the labor market as it can enhance productivity,

improve workforce diversity and inclusion, and increase growth in E-commerce.

Enhance Productivity

First of all, AI can enhance productivity as it can process vast amounts of data that

can help make intelligent decisions, leading to increased efficiency and improved overall

productivity. This attributes to the fact that artificial AI possesses diverse capabilities

enabling it to perform tasks that surpass typical human abilities such as automation and

streamlined operation, predictive maintenance and also decision support. Compared to

conventional human labor, AI-powered robots and systems can carry out repetitive and time-

consuming tasks with precision and consistency, thus eliminating the risk of human errors.

By reducing the potential for human errors, organizations can experience increased efficiency
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and also achieve cost reduction through streamlined and error-free processes. Nikita Dugal

(2023) mentioned the benefits of using AI when he wrote that:

The major advantage of Artificial Intelligence is its capacity to markedly minimize

errors while enhancing accuracy and precision. A.I's decision-making at each stage

relies on previously collected information and a defined set of algorithms. When

programmed effectively, these algorithms can virtually eliminate errors, ensuring a

high level of precision in decision-making processes. (p.4)

By referring to this, we acknowledge that human factors always play a critical role in

the industry and in order to reduce human errors the AI capabilities are utilized. AI-powered

robots and systems can take over repetitive tasks in manufacturing and other industries. These

systems operate with consistent precision, reducing the likelihood of human errors caused by

fatigue or distraction faced by human labourers. On the other hand, A.I can operate 24 hours

compared to the conventional human labour because it does not required rest, sleep and also

time off. For task that require continuous attention, this will surely be very beneficial as A.I

technology does not have limited energy like normal human labour. A.I ability to work

nonstop ensure that task in critical industry such as surveillance and production can be done

and completed without any interruption or failure.

In summary, the implementation of A.I technology in the labour market without a

doubt will stand as the catalyst in the increasing of the overall productivity. This positive

impact caused by A.I is based on its capabilities to do task efficiently compared to the

conventional human labour.

Improve Workforce Diversity and Inclusion

An improvement of workforce diversity and inclusion is the next positive contribution

of AI towards the labour market. Human employers, even with all their efforts, simply
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incapable to overcome AI’s superiority in generating a just decision in the context of

screening job applicants. The implementation of AI-based employment process could reduce

prejudice and partisanship commonly done by humans, whether they realized or otherwise.

Naturally, employers, due to their human feelings, have the tendency to be subjective

in selecting their new workers based on their backgrounds such as their ethnicity, religion,

age, and gender. With the help of AI, human resource division could minimize prejudice on

job applicants by focusing on the quality of skills and knowledge possessed. This idea is

parallel with past studies on AI effectiveness to reach diversity goal by Cohen (2019) and

Jora et al. (2022), which found that AI takes no notice of candidates’ background except it

fairly evaluates their mastery level that is required for the jobs. Based on the studies, AI-

implementation in the hiring procedure has a high chance of bypassing any unavoidable

human emotional influence. To illustrate that, sentimental feelings prompt employers to pick

a staff with the same race as him, even though other candidates have better proficiency for

the company. So, qualifications on the foundation of the jobseekers’ caliber and intellects

will be the focal point of an AI-based employment system to reduce discrimination on

background differences. This echoed the Litaʻārafū concept from the Qur’an as suggested by

Basri (2022), when he criticized the practice of favoritism. He wrote, in his paper, “Allah

SWT created humans in a pluralistic manner, with various nations and tribes with diversity

and human plurality, not to divide or feel right for each other, but to get to know each other”

(p. 128). It should be realized now that diversity and inclusion in organizations could deliver

many unique ideas, talents and creativity on the table, on top of promoting a check-and-

balance attitude among workforces.

In short, the opportunity for self-improvement among workforces is presented in a

differences-embracing company, where unbiased AI-based employment exercise took place.

For that reason, artificial intelligence made a positive impact on the labor market as it can

help companies in reaching their goal of being diverse and inclusive.

Increase Growth in E-commerce

Building upon the foundation of our exploration into AI can enhance productivity and

improve workforce diversity and inclusion, the third key aspect is that AI can help with the

growth in E-commerce. With AI growing rapidly over the years, it can help improve

companies in a way that enhances their client experiences and simplifies processes. The

integration of AI into companies’ operations has the potential to revolutionize how businesses

interact with clients and manage their internal processes.

AI may also assist e-commerce companies in controlling data-driven insights for

informed decision-making which is an essential component in maximizing their effectiveness

in the ever-changing internet market. With generative AI services and robotics, E-commerce

companies are aiming to streamline their product sorting and delivery to achieve cost

reduction and revenue growth (Sravanthi Munagapati, 2023). Based on the research done,

even Alibaba which is a key player in the e-commerce market has embraced AI assistants like

Tmall Genie (A smart speaker made by Alibaba Group which uses intelligent personal

assistant service called AliGenie) to gain competitive edge in the ongoing market. AI

powered customer service chatbots have emerged as a transformative technology, showing

remarkable effectiveness in addressing an important proportion of client enquiries. For

example, a significant percentage reveals that these intelligent chatbots are capable of

managing an impressive 95 percent of both written and spoken customer interactions. The use

of AI in e-commerce presents a range of benefits for businesses, from personalized product

recommendations to fraud prevention and improved customer experiences. In addition, AI in

e-commerce greatly enhances user experiences. Take AI infused Chatbots, for instance. They

handle inquiries, share product data, and aid customers throughout the buying process. This
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boosts customer happiness. At the same time, businesses can widen their support services and

create avenues for fresh ventures.

AI's rising importance in online shopping comes from its countless uses. Plus, it has

special perks that are hard to find in other tech solutions. The boom in AI use for online

shopping is a big part of why it's gaining prominence. It's crucial to note, AI isn't standalone,

it's embedded throughout the online shopping landscape. In online shopping, AI forms the

backbone for creating smart answers and enhancing the customer journey. AI's relevance is

expanding in ecommerce, noticed by its rising application list and special benefits it provides.

This trend suggests as firms keep discovering and utilizing AI power, its place in e-commerce

gets more essential.

Conclusion

In conclusion, by utilizing AI, we can bring many positive effects to the labor market

because AI is always changing to be a better and more compatible tool for us to use. One of

the most noticeable impacts of AI to the labor market is the integration of AI emerges as a

powerful catalyst of enhancing productivity. As AI continues to evolve, its capacity to

automate and streamline processes will offer valuable opportunities for an efficient

production. Other than that, the increase in diversity and inclusion in the workplace could be

achieved through the implementation of an AI based employment procedure for its neutrality.

This will surely help any organization to prevent biases related to gender, race, ethnicity, and

other factors during the hiring process. In addition, AI can help e-commerce businesses

improve their growth and succeed in the competitive and dynamic online market. By

implementing this, the customer's personal experience can be personalized so that their

engagement with the business becomes greater.

Hence, every employee must implement the AI so that they can stay relevant in

today's labor market. By expecting the AI to do the daily routine of human works, employees
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can direct their workers to do more complex and creative works. Other than that, companies

should invest more in training their workers how to utilize the capability of the AI so that

they have the knowledge and ability to maximize the full potential of the AI for the benefits

of the company. With this, the overall productivity and efficiency within the company will

eventually become greater. In Surah Hud (11:37), it explains the story of Prophet Nuh

constructing the Ark to overcome the challenge faced by its followers which is the “Great

Flood”. From an Islamic perspective, it emphasizes the importance of proper leadership skills

to utilize the knowledge and resources provided by the god. Therefore, by investing more in

the realm of AI development, the organization can eventually make use of the beneficial

knowledge and technology that is provided by our creator in a positive way.

References

Basri. (2022). The Islamic education without discrimination in the Qur’an perspective. Jurnal

At-Tibyan: Jurnal Ilmu Alqur’an dan Tafsir, 7(1), 121-135.

https://doi.org/10.32505/at-tibyan.v7i1.4212

Bruun, E.P.G., & Duka, A., (2018). Artificial Intelligence, jobs and the future of work:

Racing with the machines. Basic Income Studies, 13(2), 1-15.

https://doi.org/10.1515/bis-2018-0018

Cohen, T. (2019). How to leverage artificial intelligence to meet your diversity goals.

Strategic HR Review, 18(2), 62-65. https://doi.org/10.1108/SHR-12-2018-0105

Duggal, N. (2023, November 24). Advantages and disadvantages of artificial intelligence

[AI]. Simplilearn.com. https://www.simplilearn.com/advantages-and-disadvantages-

of-artificial-intelligence-article

Jora, R.B., Sodhi, K.K., Mittal, P., & Saxena, P. (2022). Proceedings of the 8th international

conference on advanced computing and communication systems. IEEE.

https://doi.org/10.1109/ICACCS54159.2022.9785266

United Nations. (n.d.). The Global Goals. https://www.globalgoals.org/goals/8-decent-work-

and-economic-growth/