As founders, is any topic more top of mind these days than AI?

Here on e27, it certainly doesn’t seem that way, with recent reports from fellow contributors on artificial intelligence in the context of anything from productivity to mental health. 

Some of the work done in the region is even hitting the world stage, like Vietnam’s ELSA Speak landing a spot in the Top 30 Generative AI tools.

But another side of AI is seeing less discussion: the potential massive displacement that AI could bring about.

And when I say massive, I mean massive.

In a recent report, the International Monetary Fund warned that artificial intelligence could affect nearly 40 per cent of jobs worldwide. 

On the one hand, this means the potential for companies to do more with less. 

But what does this mean for our jobs and that of our teams?

Let’s dive in.

Why AI has been on the rise 

First of all, why is AI adoption progressing so quickly, especially in startups?

The answer is (as always) in the numbers.

According to Bain, AI makes work up to 41 per cent faster. 

Indeed, 81 per cent of Generative AI users we polled said they’re already more productive thanks to Generative AI.

As the research shows, AI helps them automate Email and Communication (50 per cent), Data Analysis and Reporting (45 per cent), and Research (42 per cent).

Early Copilot users agreed in a study that its maker, Microsoft, recently released and largely said they would never want to go back to a work-life without AI. 

As startup founders looking at how to manage our time and resources best in 2024, it’s hard to say no to those kinds of productivity gains. 

The one-person unicorn

But it goes further than that. 

If Generative AI continues its high velocity of capacity and capability improvements, we can do more and more without needing to hire large teams.

Also Read: AI and ethics in digital marketing: Building trust in the tech era

Just look at the next generation of ChatGPT.

In an interview with Bill Gates, Sam Altman shared how ChatGPT 5 will be immensely more powerful, with stronger reasoning skills and vastly improved reliability. 

OpenAI will also add video as one of its ‘models,’ allowing ChatGPT to become an integrated companion in how we live and work in 2024.

More recently, Sam Altman shared how all these improvements will eventually lead to someone creating a one-person unicorn.

This aligns with one of my 2024 Predictions and builds on previous insights from Ben Parr of Octane AI. In a podcast interview, he said, “People are realising how much of their companies they could automate. I believe that there will be a billion-dollar company built in the next five-ish years that has one to three people at the top because you can automate almost everything else. It’s going to happen.”

NFX’s James Currier explains how this may sound far-fetched but how it’s actually very possible, “They will be able to develop software faster and better with AI dev co-pilots. Run sales prospecting, qualifying, and outreach with AI automated systems. Run marketing campaigns with AI optimisations.

Run AI customer service and success faster and with higher quality. Run accounting and legal cheaper and faster. Run analytics with more detail, less fuss, and better results. Set up self-healing data pipelines. Set up automated workflows. File taxes and other government requirements. All with AI.”

While we are far from a unicorn, we transitioned to this kind of team last year, focusing on a small group of high-performing team members who use AI daily to create exponential outcomes.

This helps us stay agile and innovate quickly, while as a company, we benefit from reduced overhead – from payroll to employee engagement costs.

How AI will drive job losses in the region

Whether you aim for a 1-3 person unicorn or not, it’s clear that AI will lead to job losses, including in our region. 

In their report “Gen-AI: Artificial Intelligence and the Future of Work,” the IMF predicts that 40 per cent of jobs will be affected by AI. 

Also Read: AI transforming LinkedIn content: Our custom GPT journey

The researchers highlight that AI can perform tasks that usually require human brain power, like processing language, recognising patterns, and making decisions. Many jobs could become redundant as AI improves at taking over our work.  

A second report by Goldman Sachs pegs the number lower at 18% of full-time jobs globally but still at an incredible 300 million roles. 

It lists Hong Kong and Singapore as most affected in the APAC region, with developing markets like Vietnam (where I am based) impacted less, and later, due to lower labour costs, there is less pressure to automate jobs.

Examples of jobs popular in the region that AI could replace are:

• Coders: Software companies and “dev shops” lead AI adoption, with tools like GitHub co-pilot and screenshot-to-code improving coders’ productivity. Consequently, 94 per cent of engineers say AI already leads to lower salaries. As I shared with CNBC, “Even the best engineers will be valuable until they are not.” 
• Customer service: A huge market in The Phillippines, AI-powered customer service is revolutionising the industry, providing quick and accurate responses at a much lower cost and boosting the performance of less skilled employees by up to 35 per cent. 
• Designers. The progress of image-generating tools in just one year is astonishing. It’s not hard to imagine that AI can produce anything you want, cutting out the need for a designer in most cases. The data agrees: right after ChatGPT-4 launched, freelance designer’s rates fell by over 10 per cent. 

Of course, not all jobs will be affected. 

While AI will replace many jobs, especially those with administrative and legal tasks, building maintenance, construction, food services, and personal care roles will be less impacted, according to the Goldman Sachs report.

The bottom line

AI has truly transformed the workplace by 2024 and is set to disrupt work even further.

With 81 per cent of users reporting increased productivity and Bain estimating up to 41 per cent faster task completion, AI will be undeniably attractive for employees and employers – there’s no stopping it. 

For startups, especially in higher-income markets in the region, this means an opportunity – and likely a mandate – to reduce the number of roles and tasks that machines can perform.

Not only does this help the bottom line, but it also helps people focus on the things humans are uniquely capable of and which are more rewarding than emailing, analysis, and reporting.

As AI evolves, especially towards AGI, and replaces more human skills and even full roles, its impacts will be more worrisome. 

This is a future we all need to be ready for – and smart leaders prepare for today.

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