AI Hype: Will Jobs Really Disappear or Is It Just Speculation?
AI developers often exaggerate the technology's capabilities to attract investment, but real costs and irreplaceable human creativity suggest that full job replacement is not imminent.
On July 16, the world marks International Artificial Intelligence (AI) Appreciation Day. Meanwhile, dramatic predictions about job loss and an automated future are widespread. Agnis Jakubovičs, head of Latvian AI solutions developer "Apply", explains that the current hype around AI is artificially fueled to attract investors and clients.
Narrative Makers
Jakubovičs points out that the most dramatic statements come from AI developers themselves, such as "OpenAI". These companies operate at a loss and depend on investment, so they must create the impression that AI is indispensable. He cites a circular investment example between "Nvidia" and "OpenAI": Nvidia invests in OpenAI, OpenAI buys Nvidia products, raising Nvidia's stock, which enables further investment in other AI firms.
Real Costs and Human Value
Although users pay about 30 euros per month for generative AI, the actual costs are much higher and are subsidized by investors. In many tasks, human labor remains cheaper and more efficient. AI cannot generate entirely new ideas – it relies on existing knowledge. Meanwhile, human needs constantly change, creating demand for unique solutions.
Economic Paradox
If AI replaced all jobs, people would have no income to buy goods and services, breaking the economic cycle. Therefore, full replacement is impossible. A more likely scenario is collaboration, where AI helps humans become more productive.
Errors and Responsibility
Jakubovičs recalls the March 2024 "Amazon" incidents, where AI-generated code caused serious operational disruptions, forcing the company to reinstate human oversight. In business-critical systems like financial transactions, a certified programmer is still necessary.
Junior-Level Employees
Recently, there has been talk that companies will no longer need junior employees. Jakubovičs argues this would create a "clear-cutting" effect – without young specialists, there would be a shortage of experienced experts in the future. Thus, economic logic will preserve the need for professionals at various levels.
Conclusion
AI is a powerful tool, but it will not replace human creativity and adaptability. The biggest risk is uncritical reliance on technology, while human involvement and responsibility remain essential.
