The Transformative Power of Artificial Intelligence: Reshaping Service Occupations Through Substitution and Complementation

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School of Business | Bachelor's thesis

Date

2023

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Mcode

Degree programme

Tieto- ja palvelujohtaminen

Language

en

Pages

22 + 9

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Abstract

The fourth industrial revolution is rapidly blurring the boundaries between physical, digital, and biological, changing the way industries operate. One of the key technologies of the revolution, artificial intelligence (AI), has seen tremendous development, raising concerns about the impact on the future of service occupations. AI has developed skills that match or even outperform humans, but it has also created opportunities to create unique resource bundles through hybrid settings. The transformative power of AI will likely have a dualistic effect, resulting in simultaneous substitution and complementation. The susceptibility to substitution and complementation depends mostly on the type – mechanical, analytical, intuitive, or empathetic – of individual tasks that comprise jobs and occupations. Similarly, the nature of the occupation has a great effect on whether tasks can be substituted. Overall, the transformation will shape jobs in a way that changes the skill requirements of tasks in the future. This means there will be a structural change in which skills are more valuable among humans as resources and which skills become obsolete.

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Thesis advisor

Bragge, Johanna

Keywords

artificial intelligence, substitution, complementation, transformation, workforce

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