AI is changing older workers' careers, research finds — here's how

Recent research from the Center for Retirement Research at Boston College reveals that artificial intelligence (AI) is influencing the careers of older workers, particularly those aged 55 and above. While concerns often focus on the younger workforce being replaced by technology, evidence shows that older individuals in AI-affected industries are also experiencing significant job transitions. Geoffrey Sanzenbacher, an economics professor and author of the study, highlighted that these transitions can result from both voluntary decisions and unemployment. "It's a statistically significant effect," he stated, noting that the impact varies across different occupations. Sanzenbacher's research underscores three primary ways AI is reshaping the careers of older workers. First, automation may lead to job displacement, forcing some to exit the workforce entirely. Alternatively, the push to integrate AI could compel others to seek positions that are less reliant on these technologies or even choose early retirement. On a more positive note, advancements in generative AI might enable individuals to extend their careers by boosting productivity, increasing wages, and allowing them to engage in more fulfilling tasks. The research assessed AI exposure based on its potential to perform specific job tasks, utilizing data from the Current Population Survey alongside insights from Tufts University's Digital Planet initiative. Findings indicated that prior to the introduction of OpenAI's ChatGPT, older workers in AI-exposed roles had a lower likelihood of leaving their positions. However, post-ChatGPT, there has been a noticeable rise in job transitions, including those leading to unemployment. Interestingly, the study revealed that older workers more vulnerable to AI changes are predominantly white, possess higher education levels, and earn more compared to their counterparts with lower AI exposure. The implications of this research challenge the stereotype that older individuals in physically demanding jobs retire sooner than their higher-educated peers. As policymakers contemplate reforms to the retirement age, the influence of AI on employment must be considered. Projections indicate that the Social Security trust fund may deplete by late 2032, prompting discussions on raising the retirement age or increasing payroll taxes for high earners. Sanzenbacher noted that higher-income individuals may face more significant benefit reductions, further necessitating their continued participation in the workforce. Despite the challenges, older workers are beginning to embrace AI, albeit at a slower pace than younger generations. A recent AARP survey found that while 24% of adults aged 50 and older view AI as a threat, 19% see it as an opportunity, with 37% acknowledging both perspectives. Research from AARP and LinkedIn suggests that older professionals tend to occupy roles less susceptible to disruption by AI, as their jobs often require irreplaceable skills such as collaboration, judgment, and leadership. For those who have yet to leverage AI, it's important to adapt. Career expert Vicki Salemi recommends that older workers focus on becoming proficient with AI tools and enhancing their soft skills. Learning about the AI applications used by their employers can significantly improve their productivity, while showcasing skills like communication and problem-solving can enhance their career prospects. In today’s evolving job market, demonstrating a blend of strong soft skills and adaptability to new technologies can greatly enhance older workers’ candidacy, making them valuable assets in any organization.