Home Business Insights How AI is reshaping workforce, creating job opportunities

How AI is reshaping workforce, creating job opportunities

by Radarr Africa

Artificial Intelligence (AI) is rapidly changing how work is done across the world, and Nigeria is not left out. As businesses adopt automation, machine learning, and AI tools to help with decision-making, companies are being forced to rethink how they hire, train, and manage their employees. While AI promises to improve efficiency and spark innovation, there are concerns that it could lead to job losses, create skill gaps, and reduce the human touch in the workplace.

The future of work will not only depend on how AI technologies evolve but also on how companies combine these tools with the skills of their workers. Businesses that thoughtfully integrate AI into their operations will likely see more growth and productivity, while those that ignore it risk falling behind.

HR professionals and business leaders are at the forefront of this change. They must ensure that AI enhances human capabilities instead of replacing people. As AI continues to improve, its impact on both Nigeria’s workforce and the global job market is becoming more complex and far-reaching.

Nigeria’s AI sector has been growing rapidly, driven by tech startups, research institutions, and government support. Dr. Oluwaseyi Akinbobola, Director of the Lagos AI Research Institute, said that Nigeria’s AI field has grown significantly in the last 18 months. Investments in Nigerian AI startups increased by 43% since 2023. He also noted that Nigeria is focusing on building AI solutions that address African problems, instead of just copying foreign models.

By early 2024, there were over 80 AI-focused startups in Nigeria, up from 35 in 2022. These companies, mainly in Lagos, Abuja, and Port Harcourt, have raised over $120 million in funding, showing that investors believe in Nigeria’s potential to lead in AI.

The rise of AI in the workplace brings both challenges and opportunities. According to a report by the World Economic Forum, AI and automation could replace 85 million jobs globally by 2025. However, it also predicted that 97 million new jobs will be created, leading to a net increase in job opportunities. In Nigeria, the government is supporting AI development with a N3 billion (about $3.5 million) allocation for AI research in Nigerian universities in 2024.

Despite fears of job displacement, AI presents many opportunities for new jobs. In healthcare, AI is helping doctors diagnose diseases and predict health outcomes. In the financial sector, AI is improving fraud detection and customer service. These advancements are creating jobs for data analysts, cybersecurity experts, and machine supervisors. In human resources, AI is automating tasks like resume screening and payroll processing. However, HR experts like Oreoluwa Adedokun say AI should support HR professionals, not replace them. He explained that AI cannot replicate the empathy and human connection that HR requires.

John Obaro, the founder of SystemSpecs Holdings, believes that while AI may lead to job losses in some areas, it should be seen as a partner rather than a replacement for human workers. He advises professionals to embrace AI and reskill to stay relevant in the changing job market.

Education and reskilling are essential for ensuring a smooth transition to an AI-powered future. According to the World Economic Forum, over half of workers worldwide will need to reskill by 2025. In Nigeria, the government is investing in AI education at the university level. However, more needs to be done to build digital literacy, especially through vocational training and public-private partnerships.

AI also raises ethical concerns. There are worries about algorithmic bias, especially when AI systems are used in hiring, performance reviews, and promotions. Experts are calling for more transparency and ethical guidelines in AI development to ensure fairness.

In the future, AI should work alongside humans to create better jobs and a more inclusive workforce. Nigeria is making strides in the AI field, but for the country to reach its potential, investment in infrastructure, talent, and policies that support all Nigerians, both in urban and rural areas, is crucial.

Nigeria’s success in the AI space depends on its ability to balance innovation with inclusivity and ensure that everyone benefits from the opportunities AI brings.

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