MONEY THOUGHTS: Thriving throughout the AI tsunami
BUSINESSES matter, as do jobs. Both generate money, but differently: Businesses sell goods or services or both for money. These inflows of cash form their revenue, sales, or turnover.
The rise of artificial intelligence (AI) and automation is reshaping the job market, reducing the need for human workers in various industries. While businesses may benefit from increased efficiency, workers who lose their jobs due to technological advancements face significant challenges. The money generated by businesses, through their sales and revenue, is essential for the economy as it provides customers with the means to purchase goods and services.
However, when workers lose their jobs, aggregate demand for goods and services decreases, leading to a decline in overall economic activity.
Governments collect income tax from employed individuals, contributing to public revenues. As more people lose their jobs, governments lose a crucial source of income, which can result in increased social transfer costs to support those without employment. In Malaysia, the government's social transfer system is less robust compared to countries like Australia, Denmark, and Norway, making the impact of job losses more pronounced.
Despite these challenges, Malaysians can take steps to protect their economic future. First, individuals should position themselves as AI experts within their organizations, learning to harness the technology's potential. Second, they should seek higher-paying roles that require their newly acquired AI skills. Third, controlling expenses while increasing income can help build savings and investment assets, providing a robust foundation for passive income streams in the future.
Lastly, staying informed about ongoing changes in the job market and economy can help individuals prepare for a brighter financial future, even as job stability becomes less certain.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.