“Our findings indicate that approximately 80% of the U.S. workforce could have at least 10% of their work tasks affected by the introduction of GPTs, while around 19% of workers may see at least 50% of their tasks impacted. The influence spans all wage levels, with higher-income jobs potentially facing greater exposure.”
RESEARCH. GPTs are GPTs: An Early Look at the Labor Market Impact Potential of Large Language Models. March 23, 2023.
Abstract. We investigate the potential implications of Generative Pre-trained Transformer (GPT) models and related technologies on the U.S. labor market. Using a new rubric, we assess occupations based on their correspondence with GPT capabilities, incorporating both human expertise and classifications from GPT-4. Our findings indicate that approximately 80% of the U.S. workforce could have at least 10% of their work tasks affected by the introduction of GPTs, while around 19% of workers may see at least 50% of their tasks impacted. The influence spans all wage levels, with higher-income jobs potentially facing greater exposure. Notably, the impact is not limited to industries with higher recent productivity growth. We conclude that Generative Pre-trained Transformers exhibit characteristics of general-purpose technologies (GPTs), suggesting that these models could have notable economic, social, and policy implications.
LEARN MORE: Humans Need Not Apply (15:00)
ARTIFICIAL INTELLIGENCE. ChatGPT is about to revolutionize the economy. MIT Technology Review. March 25, 2023</>
We need to decide what that looks like. New large language models will transform many jobs. Whether they will lead to widespread prosperity or not is up to us.
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Whether it’s based on hallucinatory beliefs or not, an artificial-intelligence gold rush has started over the last several months to mine the anticipated business opportunities from generative AI models like ChatGPT. App developers, venture-backed startups, and some of the world’s largest corporations are all scrambling to make sense of the sensational text-generating bot released by OpenAI last November.
You can practically hear the shrieks from corner offices around the world: “What is our ChatGPT play? How do we make money off this?”
But while companies and executives see a clear chance to cash in, the likely impact of the technology on workers and the economy on the whole is far less obvious. Despite their limitations—chief among of them their propensity for making stuff up—ChatGPT and other recently released generative AI models hold the promise of automating all sorts of tasks that were previously thought to be solely in the realm of human creativity and reasoning, from writing to creating graphics to summarizing and analyzing data. That has left economists unsure how jobs and overall productivity might be affected.
For all the amazing advances in AI and other digital tools over the last decade, their record in improving prosperity and spurring widespread economic growth is discouraging. Although a few investors and entrepreneurs have become very rich, most people haven’t benefited. Some have even been automated out of their jobs.
Productivity growth, which is how countries become richer and more prosperous, has been dismal since around 2005 in the US and in most advanced economies (the UK is a particular basket case). The fact that the economic pie is not growing much has led to stagnant wages for many people.
What productivity growth there has been in that time is largely confined to a few sectors, such as information services, and in the US to a few cities—think San Jose, San Francisco, Seattle, and Boston.
Will ChatGPT make the already troubling income and wealth inequality in the US and many other countries even worse? Or could it help? Could it in fact provide a much-needed boost to productivity?
ChatGPT, with its human-like writing abilities, and OpenAI’s other recent release DALL-E 2, which generates images on demand, use large language models trained on huge amounts of data. The same is true of rivals such as Claude from Anthropic and Bard from Google. These so-called foundational models, such as GPT-3.5 from OpenAI, which ChatGPT is based on, or Google’s competing language model LaMDA, which powers Bard, have evolved rapidly in recent years.
They keep getting more powerful: they’re trained on ever more data, and the number of parameters—the variables in the models that get tweaked—is rising dramatically. Earlier this month, OpenAI released its newest version, GPT-4. While OpenAI won’t say exactly how much bigger it is, one can guess; GPT-3, with some 175 billion parameters, was about 100 times larger than GPT-2.
But it was the release of ChatGPT late last year that changed everything for many users. It’s incredibly easy to use and compelling in its ability to rapidly create human-like text, including recipes, workout plans, and—perhaps most surprising—computer code. For many non-experts, including a growing number of entrepreneurs and businesspeople, the user-friendly chat model—less abstract and more practical than the impressive but often esoteric advances that been brewing in academia and a handful of high-tech companies over the last few years—is clear evidence that the AI revolution has real potential.
Venture capitalists and other investors are pouring billions into companies based on generative AI, and the list of apps and services driven by large language models is growing longer every day.
Among the big players, Microsoft has invested a reported $10 billion in OpenAI and its ChatGPT, hoping the technology will bring new life to its long-struggling Bing search engine and fresh capabilities to its Office products. In early March, Salesforce said it will introduce a ChatGPT app in its popular Slack product; at the same time, it announced a $250 million fund to invest in generative AI startups. The list goes on, from Coca-Cola to GM. Everyone has a ChatGPT play.
Meanwhile, Google announced it is going to use its new generative AI tools in Gmail, Docs, and some of its other widely used products.
Still, there are no obvious killer apps yet. And as businesses scramble for ways to use the technology, economists say a rare window has opened for rethinking how to get the most benefits from the new generation of AI.
“We’re talking in such a moment because you can touch this technology. Now you can play with it without needing any coding skills. A lot of people can start imagining how this impacts their workflow, their job prospects,” says Katya Klinova, the head of research on AI, labor, and the economy at the Partnership on AI in San Francisco.
“The question is who is going to benefit? And who will be left behind?” says Klinova, who is working on a report outlining the potential job impacts of generative AI and providing recommendations for using it to increase shared prosperity.
The optimistic view: it will prove to be a powerful tool for many workers, improving their capabilities and expertise, while providing a boost to the overall economy. The pessimistic one: companies will simply use it to destroy what once looked like automation-proof jobs, well-paying ones that require creative skills and logical reasoning; a few high-tech companies and tech elites will get even richer, but it will do little for overall economic growth.
Helping the least skilled
The question of ChatGPT’s impact on the workplace isn’t just a theoretical one.
In the most recent analysis, OpenAI’s Tyna Eloundou, Sam Manning, and Pamela Mishkin, with the University of Pennsylvania’s Daniel Rock, found that large language models such as GPT could have some effect on 80% of the US workforce. They further estimated that the AI models, including GPT-4 and other anticipated software tools, would heavily affect 19% of jobs, with at least 50% of the tasks in those jobs “exposed.” In contrast to what we saw in earlier waves of automation, higher-income jobs would be most affected, they suggest. Some of the people whose jobs are most vulnerable: writers, web and digital designers, financial quantitative analysts, and—just in case you were thinking of a career change—blockchain engineers.
“There is no question that [generative AI] is going to be used—it’s not just a novelty,” says David Autor, an MIT labor economist and a leading expert on the impact of technology on jobs. “Law firms are already using it, and that’s just one example. It opens up a range of tasks that can be automated.”
Autor has spent years documenting how advanced digital technologies have destroyed many manufacturing and routine clerical jobs that once paid well. But he says ChatGPT and other examples of generative AI have changed the calculation.
Previously, AI had automated some office work, but it was those rote step-by-step tasks that could be coded for a machine. Now it can perform tasks that we have viewed as creative, such as writing and producing graphics. “It’s pretty apparent to anyone who’s paying attention that generative AI opens the door to computerization of a lot of kinds of tasks that we think of as not easily automated,” he says.
The worry is not so much that ChatGPT will lead to large-scale unemployment—as Autor points out, there are plenty of jobs in the US—but that companies will replace relatively well-paying white-collar jobs with this new form of automation, sending those workers off to lower-paying service employment while the few who are best able to exploit the new technology reap all the benefits.
In this scenario, tech-savvy workers and companies could quickly take up the AI tools, becoming so much more productive that they dominate their workplaces and their sectors. Those with fewer skills and little technical acumen to begin with would be left further behind.
But Autor also sees a more positive possible outcome: generative AI could help a wide swath of people gain the skills to compete with those who have more education and expertise.
One of the first rigorous studies done on the productivity impact of ChatGPT suggests that such an outcome might be possible.
Two MIT economics graduate students, Shakked Noy and Whitney Zhang, ran an experiment involving hundreds of college-educated professionals working in areas like marketing and HR; they asked half to use ChatGPT in their daily tasks and the others not to. ChatGPT raised overall productivity (not too surprisingly), but here’s the really interesting result: the AI tool helped the least skilled and accomplished workers the most, decreasing the performance gap between employees. In other words, the poor writers got much better; the good writers simply got a little faster.
The preliminary findings suggest that ChatGPT and other generative AIs could, in the jargon of economists, “upskill” people who are having trouble finding work. There are lots of experienced workers “lying fallow” after being displaced from office and manufacturing jobs over the last few decades, Autor says. If generative AI can be used as a practical tool to broaden their expertise and provide them with the specialized skills required in areas such as health care or teaching, where there are plenty of jobs, it could revitalize our workforce.
Determining which scenario wins out will require a more deliberate effort to think about how we want to exploit the technology.
“I don’t think we should take it as the technology is loose on the world and we must adapt to it. Because it’s in the process of being created, it can be used and developed in a variety of ways,” says Autor. “It’s hard to overstate the importance of designing what it’s there for.”
Simply put, we are at a juncture where either less-skilled workers will increasingly be able to take on what is now thought of as knowledge work, or the most talented knowledge workers will radically scale up their existing advantages over everyone else. Which outcome we get depends largely on how employers implement tools like ChatGPT. But the more hopeful option is well within our reach.
Beyond human-like
There are some reasons to be pessimistic, however. Last spring, in “The Turing Trap: The Promise & Peril of Human-Like Artificial Intelligence,” the Stanford economist Erik Brynjolfsson warned that AI creators were too obsessed with mimicking human intelligence rather than finding ways to use the technology to allow people to do new tasks and extend their capabilities.
The pursuit of human-like capabilities, Brynjolfsson argued, has led to technologies that simply replace people with machines, driving down wages and exacerbating inequality of wealth and income. It is, he wrote, “the single biggest explanation” for the rising concentration of wealth.
A year later, he says ChatGPT, with its human-sounding outputs, “is like the poster child for what I warned about”: it has “turbocharged” the discussion around how the new technologies can be used to give people new abilities rather than simply replacing them.