Artificial intelligence disruption and its impacts on future employment in Africa - A case of the banking and financial sector in ghana

Abstract

Artificial Intelligence is a transformative technology with the potential to both displace and create jobs across industries. Experts believe it will greatly benefit humanity by reducing tedious tasks and advancing technology. The World Economic Forum predicts that by 2025, 50% of tasks will be automated, compared to the current 29%, and around 75% of companies plan to adopt AI, with 50% expecting it to drive job growth, according to their 2023 report. Fast-growing roles stem from technology, digitalization, and sustainability. By 2025, AI will replace 75 million jobs but generate 133 million new ones, resulting in a net increase of 58 million jobs globally. However, certain industries will face significant displacement, and AI's impact on unemployment rates will differ across countries, regions, and industries. AI will likely displace jobs in manufacturing but boost employment in healthcare and education. However, experts warn of AI's risks for job market in Africa, citing automation replacing repetitive tasks like data entry and customer service. Adapting skills to the changing job landscape is crucial, but it comes with added costs for both individuals and organizations. AI advancements are set to automate routine jobs, potentially causing employment shifts in Africa, similar to global trends. New opportunities in AI, data science, and tech may emerge, but the impact hinges on AI adoption speed, infrastructure, and policies. Challenges like skills gaps, data ecosystems, ethics, policies, infrastructure, and user attitudes hinder AI adoption, affecting industries, as seen in Ghana. To boost AI adoption in Africa, building strong ecosystems involving policymakers, universities, companies, startups, and partnerships is crucial. Failure to address these challenges will hinder Ghana and Africa's progress, causing them to fall behind globally. This paper highlights the hurdles faced by Ghana and African nations in AI adoption, emphasizing job displacement and unemployment effects on job seekers. Its aim is to equip policymakers and stakeholders with insights into AI's disruptive nature, aiding in the creation of sustainable policies for the industry. The study started with a review of AI disruption's impact on future jobs in Africa using secondary sources on evolving AI tech. It also involved gathering firsthand data via interviews in Ghana to understand challenges in AI adoption, especially among industry professionals.