The impact of AI on jobs, income, and economic empowerment is a subject that has received much discussion recently. Many associate an increase in automation with fewer jobs available for humans, and that understanding is well-founded. However, as evidenced by the arrival of new technologies, the overall impact of AI will be more multidimensional than what is typically reported in the news.
The reality in many business environments is that while AI automates some forms of work, it also transforms the path to earning and distributing income.
For example, a logistics company in Nairobi that is piloting the use of AI to optimize truck routes and schedules has not reduced their driver count as a result. Instead, they have seen a significant increase in their number of deliveries due to a decrease in wasted fuel, the elimination of unnecessary detours, and the reduction of idle time for their drivers. As a result of AI optimized routes, drivers now make more deliveries per day, and the company has recently hired additional dispatchers to handle the increased number of deliveries.
Although the company made a relatively small operational change, the resulting economic impact is substantial.
AI as a Productivity Multiplier
Many uses of AI have provided a relatively modest amount of economic impact when compared to the use of human workforce as a productivity enhancer.
For instance, a freelance designer using generative tools can create and deliver marketing materials for multiple clients weekly. An accounting firm that provides services to small businesses will be able to double the number of small businesses that receive their services as a result of implementing AI-assisted systems for completing financial reconciliations. Also, farmers have begun using simple predictive tools to help plan their planting schedules more efficiently.
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