While 2023 was the year of layoffs with 240,000 jobs lost just in the tech sector (more than half as much of the total job losses in 2022), 2024 too seems to be going in the same direction.

Among the many factors threatening the job market, one that is dominating and contributing to the conversations around the world is the advent of Artificial Intelligence. Considered both a boon and bane, AI’s impact on the global work forces and the work culture is undeniable, with AI automation expected to impact up to 40 per cent of jobs around the world, according to the International Monetary Fund.

With tech and media to be among the industries most impacted by the adoption of AI in offices, factories, warehouses, and beyond, how worried should the advertising and marketing sectors be? As one may imagine, this is a question not many agencies were keen to answer, but, as with prompts on AI chatbots, we persevered.

Helping Hand?

Striking a positive note, Harsha Razdan, CEO, South Asia, dentsu, says it is crucial to recognize that while automation, including generative AI, has the potential to streamline certain tasks, it doesn't necessarily translate into wholesale job losses. “Instead, it presents an opportunity for a shift in roles and skill sets. In the advertising and marketing sector, where creativity and human insight are invaluable, generative AI is more likely to augment human capabilities than replace them entirely,” he says.

Noting that the IMF's suggestion that AI could impact up to 40 per cent of the global workforce is particularly relevant in India, a market poised for significant transformation due to its tech-heavy sectors, Premkumar Iyer, President, GOZOOP HAWK, says this situation presents both a substantial challenge and a massive opportunity for agencies.

“In the context of AI's impact on jobs, I often emphasize that it's not AI itself but the failure to adapt to AI that poses a risk to employment. In a business environment where the primary goal of brand and procurement teams is to reduce agency retainers, the concern over job displacement due to AI is significant, particularly in roles that are repetitive and routine,” he adds.

Razdan says agencies that embrace a forward-thinking approach can use generative AI as a tool to enhance efficiency and creativity while driving personalization. This may result in a realignment of job responsibilities, with a greater focus on strategic decision-making, creative ideation, and the human touch in client interactions.

“The transition may require upskilling the workforce to ensure they are adept at working in harmony with AI technologies. Moreover, agencies that invest in proprietary generative AI tools and encourage a culture of innovation are likely to position themselves as industry leaders,” he says, adding that rather than seeing generative AI as a threat, agencies can leverage it to offer more sophisticated and personalized solutions to clients, ultimately enhancing their competitiveness in the market.

That being said, from tech giants to start-ups, 32,000 jobs have already been cut in the first weeks of 2024, with pink slips expected to be handed out for at least a few more months, as companies continue to cut their employee count, even as many of them bring in record revenues. And clearly, AI is playing a role in this near universal “driving of efficiencies even as costs are being reduced”, as mentioned across the conglomerate’s communiqués.

Mind over Machine

Ishan Chaki, Google Media Buying Manager, Adbuffs, says that as an organization that uses Google Ads every day to provide tailor made solutions to our clients, the impact of generative AI is something they can’t ignore. “While AI streamlines processes, our human touch, creativity, and strategic thinking are irreplaceable. Moreover, emotional intelligence and ethical decision making is impossible without human minds. Ultimately, we can make the most of generative AI by combining its strengths with our human expertise. This collaboration can boost efficiency and creativity while preserving jobs and fostering continuous professional development within the Google Ads community.”

Amit Dhawan, Partner and CEO, Art-E, believes the potential for job displacement is a real concern, but it's not insurmountable, as by emphasizing the unique human skills that complement AI, such as creativity, empathy, and strategic thinking, employees/professionals can see AI as a tool to enhance their capabilities rather than a threat to their livelihoods. “Additionally, collaboration between governments, industries, and educational institutions can create supportive policies and programs to ensure a smooth transition for employees into new, AI-resistant roles, ultimately benefiting the industry and society as a whole,” he says.

Experts agree that the risk of job displacement is mainly in roles that are data-driven and repetitive. “However, there is an increasing demand for professionals skilled in AI literacy, creative digital content creation, and strategic analysis. To remain competitive, agencies in India need to focus on employee upskilling and potentially reshaping their organizational structures,” says Iyer, saying this proactive adaptation is essential for harnessing the potential of AI while mitigating its disruptive impact.

The movement towards automation and AI integration could indeed worsen the existing skill gap. Agencies and tech companies need to prioritize upskilling initiatives, adopting AI and related skills and emphasizing the strategic use of AI to enhance efficiency and effectiveness.

“Collaboration between human creativity and generative AI has the potential to yield outstanding results in advertising and marketing. As agencies navigate this transformation, strategic considerations should include reskilling initiatives, creating hybrid roles that combine human expertise with AI capabilities, and a commitment to maintaining a workforce that reflects the evolving needs of the industry,” says Razdan.

“At GOZOOP and GOZOOP HAWK, we've been advocating for the adoption of AI across various functions for the past year and have observed significant positive outcomes. By focusing on AI literacy and leveraging AI for creativity and strategic thinking, we aim to stay relevant and competitive in this rapidly evolving landscape,” Iyer affirmed.