💣 The Future of Work: Thanks a lot AI

Yo, Palm Springs Coachella! The AI revolution is not a distant dream but an imminent reality, and it’s going to shake up the job market in ways we can barely imagine. Whether it’s automating mundane tasks or creating entirely new industries, AI is set to redefine what work looks like. While some jobs may vanish, new opportunities for innovation and entrepreneurship will emerge, and I wish to do my part to make sure we in the valley are prepared for both scenarios.

But let's not kid ourselves; there are some hard realities to face. Many industries in our desert paradise might find themselves struggling to keep up with the rapid pace of AI advancements. Trend lines are showing potential disruptions in sectors like tourism, hospitality, retail, maybe some healthcare and most definitely knowledge worker professional services. As AI takes over repetitive grunt work, the demand for certain roles may plummet, leaving many to wonder about their place in this new landscape.

So, what’s the game plan? Adaptability and continuous learning are crucial, but we need more. If you’re a frequent reader of my writings, you’ll know that I’m a fierce champion for setting up an AI-first coworking learning center or campus right here in Palm Springs Coachella. It’s everything that Sunshine.fm was set up for - creating a media space dedicated to AI education, training, and innovation. It could be a ticket to not just surviving, but thriving in the AI era.

So what do other’s say about AI and the future of work? Read on.

First, The Experts Weigh In

McKinsey & Company predicts that AI and automation will create new job categories and opportunities, while also leading to the displacement of many existing roles. According to their report, "The Future of Work After COVID-19", nearly half of current work activities could be automated by 2030, reshaping the job market dramatically.

Forrester forecasts a net gain in employment as AI technologies evolve, anticipating that AI will replace 16% of jobs in the U.S. by 2030 but will also create new roles, leading to a net gain in employment. Their report, "The Future of Jobs, 2027: Working Side by Side with Robots", highlights that while some jobs will vanish, others will emerge, requiring new skills and training.

Gartner emphasizes the importance of upskilling employees to prepare for this AI-driven world. Businesses that invest in their workforce will be better positioned to leverage AI technologies, ensuring a smoother transition and competitive advantage in the marketplace.

MIT Technology Review warns that while AI will create jobs, it will also disrupt many, leading to significant job losses in sectors like manufacturing and administrative support. They highlight the importance of proactive policies and education to manage this transition effectively.

Brookings Institution points out that rural areas and low-income communities might face more severe impacts, with fewer opportunities for reskilling and economic diversification. Their report, "Automation and Artificial Intelligence: How Machines Are Affecting People and Places", underscores the need for targeted support and investment in these regions.

Oxford University reports that nearly half of the current jobs in the U.S. are at risk of being automated. This could lead to economic inequality and social unrest if not managed properly. Their research, "The Future of Employment: How Susceptible Are Jobs to Computerization?", suggests that proactive policies and education will be key in mitigating these risks and ensuring a smooth transition.

World Economic Forum suggests that proactive policies and education will be key in mitigating these risks and ensuring a smooth transition. Their "Future of Jobs Report 2020" emphasizes that the pace of technological change is accelerating, and society must adapt to avoid widespread disruption.

Next, An Interesting Thesis

Greg Eisenberg is a fellow tech founder and I never miss an episode of his startup ideas podcast. I appreciate his takes on entrepreneurship in general and was intrigued by a recent article he posted along with the following breakdown of how AI will affect the future of work:

1. Human-Powered (We’re Here)
- Currently, it’s all about humans. We run the show, make decisions, and do the work. Tools like Word, Excel, Facebook, Insta, Figma and Google Docs help, but it’s a people-powered world. Yet, we’re still overwhelmed.

2. AI-Assisted, Human-Powered (2025-2026)
- In the next few years, AI will become our sidekick. Think Iron Man and Jarvis. AI will handle grunt work – data analysis, scheduling, routine tasks – while we focus on strategy, creativity, and decision-making. This will kill the middleman.

3. AI-Agent Powered, Human-Assisted (2027-2030)
- By 2027, AI agents will take the lead. They’ll run complex operations, make real-time decisions, and optimize processes. Our role? To oversee, guide, and refine the AI’s work.

4. Humanoids, AI-Agent Powered (2030 and Beyond)
- By 2030, we’re talking robots. Not just software, but software plus hardware. Robots that can cook, clean, build, and even care for the elderly will be everywhere. Our job will be to design, supervise, and improve these machines and create new businesses around them.

Next, The Impact on Palm Springs Coachella

If we’re to believe the AI trend will replace countless jobs across the board, how does this play out locally? Here are some thoughts and pros and cons to get you thinking:

- Tourism and Hospitality: AI can revolutionize guest experiences but may reduce entry-level jobs, necessitating retraining
- Healthcare: AI can enhance health monitoring for retirees, but risks depersonalizing care
- Country Clubs and Retail: AI can offer personalized services and automate operations, potentially leading to job losses in admin and customer service
- Travel and Home Services: AI can enhance travel and automate home tasks, reducing local job opportunities
- New Communities and Development: AI can optimize urban planning and construction, displacing traditional jobs
- City Governance: AI can manage city resources efficiently, with concerns about data privacy and ethical use
- Non-Profits & Philanthropic Orgs: AI can streamline operations, write grants and free up time for programs, expect loss of jobs and passion of purpose
- Media and Entertainment: AI transforms content creation, challenging traditional media jobs
- Sports and Festivals: AI optimizes events but risks overshadowing the human element
- Education and Workforce Development: AI-focused schools and training centers will be crucial for future job market readiness
- Real Estate and Property Management: AI streamlines property management, potentially reducing traditional sales roles
- Transportation and Logistics: AI optimizes logistics and transportation, displacing driving and logistics jobs
- Environmental Sustainability: AI enhances sustainability efforts but requires significant investment

Some Action Steps

If you’re reading this then you’re most likely using ChatGPT some, perhaps you’ve seen the Google Gemini AI-prompting commercials, and maybe you’re excited that pretty soon you’ll have Apple Intelligence on your devices. But how are you thinking about the bigger picture and what it means for your own personal or business life. Here a few next steps along with a couple of local opportunities, a mix of ideas from both me and and Greg (see above):

1. Don’t Jump the Gun
Avoid the mistake McDonald's made with their AI drive-thru powered by IBM. They skipped steps, jumping from human-powered to AI-agent powered too quickly, resulting in costly failures. Taking it step by step is crucial. Gradual implementation allows for smoother transitions and better integration of AI into existing processes.

2. Experiment with AI Tools
Try 2-3 new tools per week. Play with agents, build GPTs, and experiment. There’s immense upside in mastering these tools, providing a new perspective on the world. Continuous learning and experimentation can drive innovation and keep businesses competitive.

3. Incentivize AI Exploration
Encourage your team to embrace AI. Their adoption of these tools will benefit the entire organization. Providing incentives and training programs can help overcome resistance and foster a culture of innovation.

4. Acquiring Businesses
As an entrepreneur, consider buying a business for 3X EBITDA and adding AI to make it 10X EBITDA in 12 months. Identifying businesses with strong data assets but limited AI integration presents a significant growth opportunity.

5. Niche Data is Gold
The best AI businesses don’t have AI yet but have the best niche data. Real opportunities lie in traditional businesses that haven’t leveraged AI. Consider licensing the data, acquiring the business, or forming partnerships. Data-driven insights can unlock new revenue streams and improve operational efficiency.

6. Automation Will Be Key
Just as AI is magical, so is automation. Entire workflows will be automated, making businesses run like a perfectly set thermostat. Embracing automation can lead to cost savings, improved accuracy, and increased scalability for local businesses. Easy to start, difficult to sustain so proceed wisely.

7. AI Agents Hiring Humans
We'll see AI agents managing tasks but hiring humans for complex, nuanced situations. Think of it as AI managers with human assistants. This hybrid model can enhance productivity while maintaining a human touch in critical areas.

8. New Industries Will Emerge
With humanoid robots entering various fields, new industries around robot maintenance, training, and even robot psychology will emerge. The job market will expand in unimaginable directions, creating opportunities for specialized skills and new career paths. Think AI Companion management and nurturing.

And Wrapping Up

It’s the wild west out there, brimming with opportunities and challenges. Yeah, it might feel overwhelming and scary, but also pretty exciting.

By embracing change and investing in education and skill development, I’d like to think that we can transform our desert paradise into a hub of AI-driven excellence. Here at SunshineFM, I’ll carry on writing about AI and how it affects us locally, in the hope that together we can create an AI Coworking Space and Media Hub. That’s my contribution, how about you?

How do you see the future of work shaping up in Palm Springs Coachella? What excites or concerns you the most? Let me know in the comments or join me for a coffee to discuss IRL. Your insights are invaluable as we navigate this exciting frontier together.

Peace.

Sources

- McKinsey & Company: "The Future of Work After COVID-19"
- Forrester: "The Future of Jobs, 2027: Working Side by Side with Robots"
- Gartner: "The Future of Work: Prepare for the AI Revolution"
- MIT Technology Review: "The Work Ahead: Machines, Skills, and U.S. Leadership in the Twenty-First Century"
- Brookings Institution: "Automation and Artificial Intelligence: How Machines Are Affecting People and Places"
- Oxford University: "The Future of Employment: How Susceptible Are Jobs to Computerization?"
- World Economic Forum: "The Future of Jobs Report 2020"
- Accenture: "AI: Built to Scale"
- Harvard Business Review: "The Risks and Rewards of AI"
- Pew Research Center: "AI and the Future of Work"