Hiring Humans Is Cheaper Than Hiring AI, As Per MIT Study On Work & Impact Of AI


Rohit Kulkarni

Rohit Kulkarni

Jan 26, 2024


AI has been the talk of the town with its scope and widespread applications and especially after the explosion of ChatGPT and other generative tools. Just like any technology, people are apprehensive and rather afraid of AI because they feel that AI will take up their jobs. However, as per a recent study conducted by Massachusetts Institute of Technology (MIT), there is no need to worry about AI in terms of job displacement in near term. The study dispels the widespread notion of job losses after AI amalgamation of business.

Hiring Humans Is Cheaper Than Hiring AI, As Per MIT Study On Work & Impact Of AI

AI Technology Currently Not Cost Effective

When the cost effectiveness of automating tasks via AI was studied by researchers, it was found out that the tasks particularly related to the visual assistance by AI could only supplant 23% of workers.

The research by MIT researchers highlighted that it is still expensive to install, deploy and operate AI assisted visual recognition whereas the human labour is more economical in numerous ways.

It was through online surveys collected on approximately 1000 visually assisted tasks across 800 occupations that the study was conducted. As per the MIT-IBM Watson AI Lab funded study, the cost to benefit ratio of computer vision is only deemed favourable in the sectors like healthcare, retail, warehousing and transportation. The low cost to benefit ratio is driven by high data costs and low accuracy, but if scenario would reverse, which means a low data costs and high accuracy, then the number of tasks that can be replaced by AI would rise from current 3% to 40% by 2030.

MIT Study Challenges Job Displacement Fears

As per the International Monetary Fund, 40% of all global jobs could be affected by AI, but the study by MIT researchers said that currently AI is not positioned in a way currently that it can replace the majority of jobs.

Mustafa Suleyman, co-founder of Inflection AI as well as Google’s DeepMind said that the AI systems are “fundamentally labor-replacing tools.


Rohit Kulkarni
Rohit Kulkarni
  • 1114 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online