TL;DR:
- Service industry workers, primarily Latino immigrants, express concerns about potential job displacement due to AI and robots.
- 1 in 3 companies plan to replace employees with AI in 2024, with 44% expecting layoffs in 2024.
- President Biden’s executive order focuses on AI safety and support for affected workers.
- Previous executive orders lacked comprehensive AI provisions, leaving the industry seeking further support.
- Automation technology companies aim to complement rather than replace the workforce.
- Barista robots like ADAM offer efficiency but come with a substantial cost.
- Unions like the Culinary Union negotiate for worker protections and upskilling.
- Experts emphasize the importance of training and upskilling for successful AI integration.
- Service industry workers hope for a leader who supports employees while harnessing AI’s potential.
Main AI News:
In the fast-paced world of Nevada’s bustling casinos, an apprehensive murmur resonates among the dedicated service workers, predominantly hailing from the Latino community. Samantha León, who has spent two decades in roles spanning hostessing, cashiering, and table waiting in Las Vegas, speaks for many when she expresses concern about the looming threat posed by robots and artificial intelligence (AI). “It’s very good if we have training; we’re also here to learn new things, new technology,” she articulated in a recent interview with Noticias Telemundo. “But when it comes to our positions, it does affect us a lot because they’re going to take away our jobs.”
These concerns are not unique to the service industry. Professionals across various domains, including designers, pilots, accountants, and even journalists, are grappling with the looming specter of AI-induced job displacement. However, the service industry, an arena traditionally defined by its human touch, faces a particularly profound challenge. “Here in these casinos, the majority is very Latino,” León emphasizes, reflecting on the demographics of the workforce. León herself is of Mexican descent, currently working as a hostess at Chickie’s & Pete’s restaurant within the Sahara casino, following stints at the Red Rock Casino Resort & Spa and Caesars Palace Hotel & Casino over the past decade.
Recent data from ResumeBuilder underscores the urgency of these concerns. Their report indicates that 1 in 3 companies plans to replace employees with AI in 2024, building upon the 37% that had already initiated such transitions in 2023. Moreover, a staggering 44% anticipate layoffs in 2024 as a direct consequence of AI integration.
In response to these mounting challenges, President Joe Biden has taken action, issuing an executive order in October that aims to establish new standards for AI safety and security. The order seeks to develop principles and best practices that mitigate the potential adverse effects of AI on the workforce. It also places a strong emphasis on investing in accessible training and workforce development, examining AI’s impact on the labor market, and identifying federal strategies to support displaced workers.
While former President Donald Trump issued the first executive order to regulate AI back in February 2019, critics argue that it lacked the necessary provisions for comprehensive AI implementation. Unlike AI plans from other nations, Trump’s order did not allocate additional federal funding for execution. Additionally, some experts expressed disappointment at the omission of immigration-related considerations. Greg Brockman, President and Co-founder of Open AI, highlights the significance of the United States’ ability to attract global AI talent historically. He advocates for a more open immigration policy to maintain the nation’s competitive edge in AI.
Interestingly, Donald Trump, now a leading contender for the Republican presidential nomination, still retains ownership of hotels and casinos in Las Vegas and other cities. However, despite reaching out to various stakeholders, Noticias Telemundo did not receive responses from the Biden administration, the Biden campaign, the Trump campaign, the Trump International Hotel in Las Vegas, or the Trump organization in New York.
Automation technology companies, on their part, assert that their objective is not to replace existing industries but to complement and enhance the workforce. Phil Zheng, Chief Operating Officer of Richtech Robotics, the creator of the ADAM barista robot, stresses that their innovation is designed to boost production and create efficiency, ultimately benefitting businesses. However, the cost of such technology remains a substantial barrier, with ADAM barista robots priced at approximately $180,000 per system, though costs can vary depending on the business’s needs.
In a conversation with Noticias Telemundo, ADAM’s AI chat reiterated the importance of discussing automation’s impact on specific demographic groups, such as Latino immigrant workers. It highlighted the role of ADAM and other robots, like ARM and ACE, in food preparation and serving, as well as the Matradee line for delivery services, all of which could find applications in casino environments.
Román Alejo, a 34-year-old barista at the Sahara casino, expressed his concerns about the potential for technological displacement in his industry. The uncertainty surrounding the future of employment is a sentiment shared by many in the workforce. Julia Toothacre, a resume and career strategist at ResumeBuilder, advises individuals to proactively understand how AI might affect their roles in their respective industries. This knowledge, she believes, is crucial for workers to prepare for potential changes and adapt effectively.
In Las Vegas, where the casino and service industry thrives, unions like the Culinary Union are advocating for employers to invest in training their employees to harness the potential of these new technologies. The Culinary Union secured substantial rights in its 2018 contract, and these protections were further reinforced and expanded in 2023. Key provisions include a requirement of up to 6 months’ notice before implementing new technology, negotiations on technology implementation, mandatory and free retraining, and access to free job training if automation creates new roles. Additionally, a bonus package tied to years of service provides six months of health and pension benefits in case of job loss due to technological advancements.
Samantha León, reflecting on these developments, expresses cautious optimism, asserting that equipped with the necessary tools, they can navigate this evolving landscape. Experts concur that upskilling the existing workforce is pivotal to successfully integrating AI into organizations. AI can be a powerful tool for eliminating routine tasks, thereby allowing humans to focus on more complex and creative endeavors. “Getting those people trained and upskilling is really where I think there is a huge opportunity,” emphasizes Ger Doyle, Senior Vice President at Experis, a technology career resources company.
As the nation awaits the outcome of the presidential race in November, casino and service industry workers in Las Vegas hope for a champion who will safeguard their rights while harnessing the potential of AI. León, echoing the sentiments of many, emphasizes the importance of having a leader who supports employees, ensuring that technology is a force for empowerment rather than replacement. In an industry defined by its human touch, the future will rely on striking a delicate balance between the capabilities of AI and the irreplaceable essence of human interaction.
Conclusion:
The service industry, heavily reliant on the human touch and predominantly staffed by Latino immigrants, faces the growing challenge of AI integration. While AI promises efficiency and innovation, it also raises concerns about job displacement. Government initiatives, such as President Biden’s executive order, seek to strike a balance by ensuring AI benefits workers and the industry. Companies in this sector must prioritize worker training and upskilling to navigate the evolving landscape successfully. Balancing technological advancement with worker empowerment will be crucial for the future of the service industry.
