The rapid advancement of artificial intelligence (AI) has sparked widespread anxieties about its impact on the job market. Tech leaders like OpenAI CEO Sam Altman and AI pioneer Geoffrey Hinton have voiced concerns about potential job displacement. Now, valuation expert Aswath Damodaran offers practical advice to safeguard your career in the age of AI.
Damodaran emphasizes that AI will continue to evolve, becoming increasingly sophisticated and capable. He suggests approaching your work with the mindset that AI is constantly observing and analyzing it, prompting individuals to proactively protect their roles. He outlines a three-step formula to achieve this:
1.
Be Secretive:
Damodaran advises keeping your work methods and insights confidential. By not making everything public, you make it more difficult for AI to learn and replicate your processes. However, he acknowledges that this approach may not always be feasible, especially in collaborative environments.2.
Get System Protection:
Some jobs naturally benefit from built-in safeguards, making them harder for AI to replace. Damodaran cites the example of real estate transactions, which often involve legal and procedural requirements that necessitate human intermediaries. Identifying and leveraging these system protections can offer a degree of job security.3.
Build a Personal Moat:
Just as companies strive for competitive advantages, individuals should cultivate unique skills and attributes that are difficult for AI to replicate. This personal moat, encompassing expertise, creativity, and interpersonal skills, can be a powerful defense against AI disruption.The conversation surrounding AI’s impact on jobs extends beyond individual strategies. Altman has highlighted the need for serious discussions about AI’s economic implications, emphasizing the potential for job displacement and broader socioeconomic changes. Hinton has similarly warned of job losses, suggesting the implementation of a universal basic income to mitigate the impact. The International Monetary Fund (IMF) has also urged governments to take proactive steps to protect economies from AI-induced inequality, recommending measures such as enhanced unemployment insurance and preparations for job losses in highly skilled occupations.
Despite these concerns, some industry leaders remain optimistic about the potential for AI to create new opportunities rather than simply replacing existing ones. The future of work in the age of AI is a complex and evolving landscape, requiring individuals, governments, and businesses to adapt and collaborate to navigate the challenges and harness the potential of this transformative technology.
