Monday Column:: Is Artificial Intelligence taking the job of graduates?

I read a social media declaration from a leading Gulf country’s businessman that Artificial Intelligence (AI) is set to reduce jobs in his companies by half this year to increase profitability.

I nearly spilled coffee on myself when I realised what that declaration really means in real life. Hundreds of people will lose jobs just because he wanted to cut operational costs. Then I called an AI expert in one of the top universities in the country to get his opinion.

He said it was already happening in many companies in the gulf countries and it fast spreading. Then I asked him what would happen to all the university students who are studying hard to get jobs after graduation?

His answer was simple but right on the dots of reality.

“Half of them will have to stay home,” he told me.

I had another question which I did not ask him to relieve his misery. What will be of the future of thousands of graduates, soon to become hundreds of thousands, spilling over to a few millions and beyond, in these gulf countries?

We know what will happen next because it is very predictable. When a young person has nothing to do all day and no income in his back account, they get into all kinds of mischief. Their heads would start cultivating the seeds of mischief in the fields of their minds.

It has happened before in these Gulf states when young job seekers could not land jobs and the nuisance they caused. AI is now stalking the return of possible social unrests just because companies resort to cut down the number of jobs to make more money.

From investment decisions, spending, purchasing to business expansions, companies are fast using AI to smooth out the complex operations.

They forget one thing in their greed to save money. Yes, AI will dramatically cut down the employment expenditures, but AI will also slash down purchasing power in the market ranging from retail, travelling and food to technology.

When thousands of people are made redundant and thousands more do not get jobs, that will remove spending in the market the retail companies depend on to survive. That means, less jobs, less money spent in the market and businesses will get into bigger trouble AI cannot reverse.

For example, GCC countries like Dubai has thousands of properties already built and many more under construction. Who is going to rent or buy them when more people lose their jobs just because AI is saving operational costs?

Moreover, foreign investors are setting up factories in the region worth billions of dollars building products for consumers. Who is going to buy them if AI has slashed half of the workforce? It goes without saying limited cash in circulation will force these investors to close down. Then who is going to pay for their debts?

Certainly it will not be AI.

So are they still banking on the faceless and heartless AI to make more money? Let us if they are right or wrong.