AI is increasingly automating many jobs and experts predict that by 2025, AI could replace some full-time jobs.
Competition in the AI era: The risk of job loss
After 13 years of working as a graphic designer, Vy Quan has never felt the risk of unemployment as clearly as in the past year when 90% of her clients stopped working with her and switched to using AI. Previously, Vy Quan’s income mainly came from two sources: game design companies and collaborative projects with publishers. Each of her products was paid from 250,000 to 1.5 million VND, depending on the complexity. With foreign publishers, they proposed a fixed price of 45 USD.
However, over the past year, Quan’s number of painting orders has steadily decreased, from 10 to 6, and finally to one or two paintings per month. Customers have switched to using AI paintings. She has tried to find new opportunities but has been rejected on the grounds that there is no demand or not enough funds. Some places even say outright that they are using AI, although they know that its products are not as good as those of artists, but they produce results quickly, have many ideas and, importantly, save costs.
Vy Quan’s concerns became even more apparent when the gaming company where she worked began recruiting artists who knew how to use AI. Management encouraged the use of technology to speed up projects.
Ka Nguyen, 35, shared his “unprecedented shock” when he saw AI handle the entire voiceover for a 30-45 second TVC (advertising video) for 10,000 VND. Normally, a voice talent like him is paid 3-4 million VND for a similar TVC. “They said there was no reason to continue hiring me,” Ka shared. The past few months have been the most difficult time in his career, as AI is gradually replacing the jobs that he and his colleagues have devoted a decade to.
The difficulties that Ka Nguyen and Vy Quan are facing are not personal, but a predicted global trend. According to a report by the McKinsey Global Institute (USA), at least 14% of the global workforce will have to change careers due to the strong progress of technology, robots and AI.
The International Monetary Fund (IMF) also predicted at the World Economic Forum in early 2024 that by 2030, more than 40% of the global workforce will be directly affected by AI.
Sharing at an exchange event with young people in October 2024, Mr. Hoang Nam Tien – Vice Chairman of the Board of FPT University warned that with the rapid development of AI and robots, up to 70% of workers could lose their jobs in the near future.
In Vietnam, many occupations are at risk of being replaced or profoundly transformed by the impact of AI. Jobs such as customer service staff, graphic designers, data entry staff, cashiers, product photography models, marketing staff, along with occupations such as accountants, teachers, etc. can all be heavily affected by the rapid development of artificial intelligence technology.
The Gig Economy: Freelancers Take Over
The Gig Economy is an economic model in which temporary, short-term, or contract work predominates, rather than traditional full-time employment. In this model, individuals primarily work as freelancers, seasonal workers, or contractors, rather than as full-time employees of a company.
Jae Gardner, CEO of Redrob, said that the rapid development of AI will push many companies to turn to freelancers to handle additional tasks, thereby contributing to the expansion of the Gig economy. He predicted: “The Gig economy will grow strongly as more and more people choose to work freelance or on contract. This will not only change the traditional employment model but also lead to adjustments in labor laws, as well as measures to protect freelance workers.”
Marais Bester, a consultant at SHL, believes that organizations will increasingly shift toward hiring freelancers or individuals who work for multiple organizations and focus on specific projects. “Whether the project is two weeks, six months or two years, companies will prioritize finding specific skills in short periods of time to meet work needs quickly and efficiently,” Bester explains.
According to the World Bank (WB), in 2023, an estimated 435 million people will participate in the Gig economy, accounting for 12% of the global labor market.
Anphabe’s 10-year review of Vietnam Talent Trends (2013 – 2023) also revealed a notable trend: flexible working has quickly become an important standard for modern workers. According to the survey, 47% of employees consider this a top priority when choosing an ideal working environment, second only to bonuses or one-time bonuses for employees with outstanding achievements.
Anphabe’s survey over the years also shows an increasing trend of the workforce participating in the Gig economy in Vietnam. If in 2020, this rate was 39%, by 2021 it had increased to 44% and continued to reach 57% in 2023, especially among the knowledge workers. Although the majority of workers still prioritize stability, the freelance economy is increasingly attracting many people thanks to its flexibility and diverse opportunities.
Ms. Nguyen Van Hanh Thuc, Director of the Ho Chi Minh City Employment Service Center, said that when consulting, the center’s team often receives the opposite question from workers: “Is there a part-time or freelance job?” According to Ms. Thuc, this trend of seeking flexibility and freedom is especially popular among the labor group of Generation Z (born from 1997 – 2012) and Generation Y (1981 – 1996) – the two main labor forces in the current market.
Roadmap to Stay Competitive in the New Labor Market
Mr. Dang Hai Loc, founder of the virtual assistant development platform Mindmaid, shared that AI is developing rapidly in three aspects: intelligence level, expansion in application fields, and increasingly low usage costs.
Experts say that the ultimate goal of AI is automation, so repetitive jobs in businesses will gradually be replaced. Losing jobs or struggling to compete with AI is inevitable. According to Mr. Loc, workers have only one way to survive, which is to constantly expand their “survival space”.
LinkedIn’s Global Workplace Learning 2024 Report also highlights that AI is reshaping the way employees work and plan their careers. According to experts, this places an urgent need on organizations to train for career transition and improve employee capacity. “Organizations that can learn faster and more effectively will gain a superior competitive advantage,” emphasized Mr. Bui Doan Chung, founder of the Vietnam Human Resources Community.
In contrast, workers who are at risk of being replaced by AI are forced to adapt by learning quickly and continuously. Skills such as AI programming, machine learning, data analysis, and proficiency with automation tools are increasingly becoming key to staying competitive in the modern labor market. At the same time, skills such as leadership, emotional management, creative thinking, and interpersonal communication are still factors that AI cannot replace. Focusing on developing soft skills will help create value in a technology-enabled work environment.
AI is increasingly intervening in the development of the socio-economy, causing workers to change their concept of job stability. The so-called “stability” now means not only long-term attachment to a workplace but also the ability to maintain stability, adapt to fluctuations, through participating in many different types of work and value-creating activities, and having many diverse sources of income.