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AI's Impact on Africa's Future Labor Landscape

Today, African continents are home to approximately a billion individuals under the age of 35. Forecasts suggest that by the end of this century, Africa will accommodate nearly half of the global youth population.

AI's Impact on Molding Africa's Future Labor Landscape
AI's Impact on Molding Africa's Future Labor Landscape

AI's Impact on Africa's Future Labor Landscape

Microsoft, in collaboration with industry experts across the continent, has released a whitepaper titled "AI and the Future of Work in Africa." The document, jointly created with the African Institute for Mathematical Sciences (AIMS), focuses on the significant potential of generative AI to advance human capabilities and alter the African labor market.

The whitepaper highlights the urgent need to equip the continent's youth with the skills required for an AI-disrupted labor market. Approximately 12 million young Africans enter the labor market each year, and nearly one billion Africans are under the age of 35. By the end of the century, projections suggest that Africa will host almost half of the world's youth population.

Jacki O'Neill, Director at Microsoft Research Africa, emphasises the potential of generative AI to advance human capabilities. Ravi Bhat, Chief Technology and Solutions Officer at Microsoft Africa, adds that generative AI will significantly alter knowledge worker jobs.

The whitepaper foresees a significant role for generative AI in transforming work environments and creating opportunities for the youth. It is not only information workers who stand to benefit from this technology. The potential of generative AI to transform industries such as agriculture, healthcare, and services must be balanced with equipping the youth with the necessary skills for an AI-disrupted labor market.

The skills development extends to a variety of fields such as machine learning, natural language processing, human-computer interaction, cybersecurity, and systems. The necessity of developing skills includes building appropriate and innovative applications and technologies on top of generative AI models.

Africa is at a critical juncture for shaping the future of work, with the evolution of large language learning models (LLMs). More people across Africa gaining access to GenAI tools via their internet-enabled devices and more affordable data reduces barriers to access and increases opportunities for skilling.

McKinsey's research suggests that generative AI could enable labor productivity growth of up to 0.6% annually through 2040, depending on the rate of technology adoption and the redeployment of worker time into other activities. However, it is crucial to develop skills across a broad spectrum to ensure that the youth are not left behind in the technological shift.

The whitepaper indicates that many anticipate generative AI to significantly alter the type of work performed, the skills needed, and the outputs produced by knowledge workers. It is, therefore, essential to prepare the youth for this new landscape and ensure they are well-equipped to seize the opportunities that generative AI presents.

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