Job market set to undergo AI-driven transformation

 

By Anna J. Park

• Published Oct 31, 2023 3:57 PM KST
• Updated Nov 1, 2023 4:47 PM KST

Is the advancement of artificial intelligence (AI) technology a boon or the bane for the labor force? Will AI replace human employees? These are some of the most frequently asked questions about generative AI (gen-AI) technologies' potential impacts, which may unnerve most people in the workplace and lead them to question their job security.

While some pessimistic voices call for a ban on the use of various gen-AI programs, including ChatGPT models, expressing concerns over the emergence of uncontrollable AI programs in the future, most AI experts remain optimistic that humans can strengthen their uniquely creative capabilities and achieve more innovation with the aid of advanced AI models.

Still, they forecast an unavoidable period of reorganization of the labor market in the medium-term, following the wider adoption of the latest AI advancemences by employers.

"I often provide consulting on AI tools for businesses, and I noticed divergent viewpoints between corporate executives and employees regarding the adoption of AI. Executives are highly interested in AI implementation to reduce the workforce, while employees tend to focus on improving their capabilities by utilizing various AI tools. With these differing perspectives, I think it's inevitable that the labor market is bound to undergo some restructuring," Suh Seung-wan, CEO of Yumeta Lab, an AI prompt engineering consulting firm, told The Korea Times.

Yet, Suh does not believe AI technologies will ultimately replace human labor: "People may feel threatened about their job security out of fear that AI might substitute human forces in the future, just as the Luddites smashed automated textile machinery in the face of the Industrial Revolution. I think this new tech can affect the labor market to some extent, yet it will not and cannot entirely replace human workers," he added.

This view resonates with Oh Se-uk, a primary researcher at the Korea Press Foundation who conducted various research projects on gen-AI programs. He said people seem to be overrating what AI can do for now.

"When viewing the current level of gen-AI tools, it's more like having a secretary; if you give them the correct command, they can implement it, just like business assistants. I think AIs will take an auxiliary role rather than forming as a major occupational group," Oh said during a phone interview with The Korea Times.

As seen in the Second and Third Industrial Revolutions, "humans will eventually do what only humans can do," he highlighted.

Another AI and big data expert Chang Joong-ho, professor at Seoul School of Integrated Sciences & Technologies (aSSIST), emphasized that the only viable solution to labor market threats posed by gen-AIs will be creating more innovation and enlarging entire markets.

"During the Industrial Revolution, workers resisted mechanization out of fear of losing their jobs. While it's true that many jobs will naturally be taken over by AI and robotics, we need to do is advance the industries and increase the size of the entire pie, rather than blocking these technologies," Chang told The Korea Times.

He conceded that the industrial revolution took away farming jobs, for instance, but stressed that the advances overall expanded industries significantly.

"While there might be temporary hardships and challenges, we need to grow the overall economic pie, in response to AI technologies. Instead of imposing heavy regulation on these technologies, the emphasis should be on fostering innovation as a driving force to create more businesses and expand industries," he said, adding that blocking or banning gen-AI would not work.

Legal tech challenges for law firms

While it is generally expected that AI and automation technologies will primarily impact occupations that carry out simple tasks, such as machine operators and administrative assistants, what will be their impact on law firms and accounting firms, which are known for their highly sophisticated professional services?

Oh said that gen-AI technology, as of now, cannot properly carry out immensely specialized tasks that require specialized judgement of facts. His verdict on the limited capacity of gen-AI tools in terms of providing sophisticated legal and accounting services is largely reflected in the stances of major law firms in Korea.

Despite such shortcomings and limitations, most major legal firms in the country have been well prepped for a wider introduction of AI technologies into their services, ranging from e-discovery and statutory analysis to translation. Overall, they understand that AI can not only complement some simple tasks performed by lawyers with lower levels of experience but also contribute to building systemic analytical tools, facilitating legal tasks performed by senior lawyers.

For instance, Lee & Ko ― one of the top three law firms in Korea ― recently completed the construction of a big data learning system and has introduced various AI solutions into its working practices.

"Lee & Ko has recently greatly improved efficiency, convenience and accuracy in its operations through the active adoption of legal tech," Kim Sang-gon, managing partner at the firm told The Korea Times.

"Since 2022, the firm has been implementing robotic process automation (RPA) solutions for tasks such as case searching, news monitoring and time management," Kim explained, adding that the firm has been actively using its independently-developed AI translator from earlier this year.

The law firm is also currently implementing its own digital billing system solution, while the company established and deployed a ChatGPT task force team to evaluate its potential applications and limitations.

Yulchon, another major law firm, also operates a legal tech research development department within the firm named eYulchon.

eYulchon has accumulated a wealth of experience in developing multiple apps in the areas of a tax advisory service, taxation, construction and pharmaceutical compliance. Recently, it has successfully built a compliance system in the area of the global health care sector.

Yulchon highlights that its legal tech department is conducting research and development on ChatGPT-related applications in collaboration with U.S.-based AI developers, while strengthening its network with U.K. law firms that are considering rolling out Harvey, an OpenAI- startup using AI tech to provide solutions for the legal industry.

Yet, Son Do-il, head of IP and technology practice at Yulchon, who also leads an AI guideline task force at the Ministry of Science and ICT, pointed out that Korea's unique legal landscape, where a sizable amount of legal information such as specifics of corporate agreements and details of precedents remains closed to the public, adding more difficulty in devising AI-based solutions.

"While it's true that AI solutions can substitute some of the simple tasks taken on by junior associates and thereby save time, they cannot replace actual humans. Such programs also require intense training and costs for each law firm so as to be reliably developed and used, and it brings up another dilemma for law firms regarding efficiency as well," Son said during a phone interview with The Korea Times.

Accounting firms on AI

When it comes to major accounting firms, they are generally well aware of the importance of utilizing AI capabilities. The global big four accounting firms ―Deloitte, PwC, EY and KPMG ― invested a combined $9 billion in AI technology in 2020, and a growing percentage of accounting firms' corporate audit procedures are expected to utilize AI solutions in the near future.

KPMG has been proactively taking the lead with KPMG Clara, a smart audit platform, that is a global accounting industry's first, the company said. This platform is currently used by KPMG member firms worldwide, including Samjong KPMG in Korea, to conduct advanced and cloud-based audits. KPMG Clara integrates data analysis and cognitive capabilities to enhance the insight and accuracy of audits. It also provides predictive analytics to assess business outlook and risks, ultimately supporting high-quality accounting audits.

At Samjong KPMG, there is also a center known as Lighthouse, which is composed of a diverse team of solution developers, including experts in AI, data science, software engineering and programming. This center is dedicated to developing cutting-edge technologies to enhance operational efficiency in the services provided by Samjong KPMG.

"The company is increasing its effectiveness and efficiency of audits by automating traditional repetitive tasks and reallocating time towards designing and executing evidence-based procedures to address significant risks. The firm will also continue to lead IT audit innovation by utilizing AI technologies, aiming to create an environment for performing high-quality audits efficiently," an official from KPMG told The Korea Times.

However, industry insiders pointed out that local laws on corporate audits needs to be ammended in order to increase the usage of AI solutions by accounting firms.

"The current use of AI tools by major accounting firms are mostly limited to automating simple, repetitive tasks or detecting abnormal, fraudulent accounting. As a wider usage of AI solutions in corporate audits may create legal problems with respect to blurring responsibilities of audit opinions, the change in local legal framework should follow for accounting firms to widely accept and utilize the new gen-AI capabilities," an insider of the local accounting industry said on condition of anonymity.