Analysis: Dr Paul Henderson, Senior Fellow at think-tank the Maxim Institute, spoke to Seven Sharp about his research into the future of employment as AI grows. Here he explains where the world of work could go.
The Artificial Intelligence (AI) revolution isn’t coming — it’s here, and it’s targeting jobs. Unlike past waves of automation that replaced manual labour, AI is infiltrating intellectual and creative fields, assuming tasks once thought uniquely human.
While history tells of resistance to technology, from Luddites to factory workers fearing mechanisation, AI is different. It doesn’t just augment work; it replaces it. Machines no longer simply do mindlessly repetitive tasks – they analyse, create and make decisions. This means not only routine jobs but also highly skilled professions are at risk of displacement.
Conservative estimates suggest at least 10% of jobs could disappear in the short term, with the IMF warning AI will impact 40% of global employment — 60% in advanced economies like ours. Secretarial, administrative and customer service roles face the steepest decline, with up to 60% of tasks in these fields at risk.
Even high-paying white-collar jobs aren’t safe. AI is replacing junior legal researchers, automating financial analysis, and streamlining banking operations — JPMorgan’s AI tool COIN now does 360,000 hours of legal work per year.
In retail and banking, AI-driven chatbots are handling customer service faster and cheaper than human staff. Manufacturing and transport industries are next, with warehouse robots and self-driving trucks set to upend logistics and supply chains.
Increasing risk of widespread unemployment
Moreover, as AI matures, it will handle increasingly complex tasks, accelerating job displacement and heightening the risk of widespread unemployment.
Maxim Institute’s latest paper, Gone for Good: AI and the Future of Work, explores the scale of this shift and its implications for New Zealand’s workforce. This isn’t just another workplace transition – it’s a revolution.
Radiologists compete with algorithms that detect anomalies with greater accuracy than human eyes. Financial analysts watch as AI interprets market trends in seconds. AI systems do not just replace repetitive tasks within these professions; they challenge the necessity of human expertise.
Even creative fields are not exempt. AI-generated music, writing and visual art challenge our ideas about human creativity.
As AI becomes as pervasive as electricity, it will invisibly power businesses, industries, and daily life. This shift carries enormous risks: rising unemployment, economic instability, and, at a personal level, a crisis of self-worth as traditional roles vanish.
Work has long been a cornerstone of identity, offering not just financial security but also purpose and personal growth. When meaningful employment disappears, we risk losing the structure, status, and self-definition that work provides.
Societies like ours, built around the expectation of stable careers, will struggle to adjust. The transition from an industrial economy to an AI-driven one will not be seamless. Governments will face pressure to implement policies like universal basic income or large-scale reskilling initiatives, yet these measures come with their own dangers.
Without meaningful employment, reliance on government assistance will likely grow, further disrupting economic and social structures in ways we have yet to fully comprehend.
Yet AI adoption will also be positive. By automating routine work, it allows us to focus on creativity, problem-solving, and strategy – areas where humans excel. Workers can then concentrate on what they are best at and enjoy, reducing the drudgery in their roles. If managed well, this shift could lead to more fulfilling work and rapid, beneficial innovation. The challenge may be technological, but the benefits of resolving it will be societal.
Public distrust of AI
Businesses face a dilemma. AI offers undeniable efficiency and cost savings, yet many hesitate to embrace it fully. Some fear reliability issues; others remain loyal to employees. Public distrust of AI failures adds to the resistance. However, AI-as-a-service, operating on a subscription model, is lowering the barrier to entry and accelerating adoption, which in turn will bring its benefits.
In this new reality, education must adapt. The idea of a single degree sustaining a career is outdated. Workers will need to frequently update their skills to remain relevant in a rapidly evolving AI-driven economy. Schools and universities must rethink their approach, prioritising science, mathematics, data science, analytics, electrical and computer engineering, and AI collaboration.
New Zealand cannot afford to fall behind in preparing its workforce and people for a future increasingly shaped by AI. We will need to understand how to work alongside AI rather than compete against it. Additionally, while emphasis on “soft skills” may seem counterintuitive in a technological revolution, human traits like emotional intelligence, ethical reasoning and creative problem-solving may become more valuable than ever.
In the wrong hands or left unchecked, AI could cause mass redundancies and reshape society in ways we haven’t prepared for. It could compete with people rather than assist them. Policymakers, businesses and educators cannot afford to be passive. They must act to harness AI’s potential while aiming to safeguard human dignity and economic stability.
If we fail to shape this transformation, it will deform our society. Let’s set the terms and make this revolution work for us, not against us.
* The Maxim Institute is an independent think tank which describes itself as “working to promote the dignity of every person in New Zealand by standing for freedom, justice, compassion, and hope”.
