CHAPTER ONE
1.1 Background of the Study
Artificial Intelligence (AI), which involves machines replicating human intelligence and actions, has swiftly emerged as a revolutionary influence spanning various industries. According to Kaplan and Haenlein (2019), AI is defined as a system's capacity to interpret external data, learn from it, and employ these insights to fulfill specific objectives.
The incorporation of AI systems into work procedures has triggered a significant technological upheaval in recent times, reshaping global industries and economies. Nations like Germany, the USA, England, China, and Japan have taken the lead in this transformative shift, actively embracing AI technologies to amplify productivity, effectiveness, and inventive solutions. Early conversations and investigations in these countries centered on comprehending the ramifications of AI on the job market (Decker et al., 2017).
Research conducted by Decker et al. (2017) spotlighted initial worries within the AI dialogue. The focus was on whether AI systems, especially robotics, were on the verge of displacing human workers across diverse sectors. This unease originated from the potential economic disparity that could emerge from the widespread adoption of AI and automation (DeCanio, 2016). The surge of AI stimulated debates on whether machines would render human skills obsolete, thereby necessitating the acquisition of new proficiencies—a concept often labeled as "creative destruction" by Schumpeter (1950).
As the century advanced, research started revealing a more intricate connection between technological progression and employment. Studies by Acemoglu (2002), Saint-Paul (2008), Acemoglu and Autor (2011), and Rodrik (2016) demonstrated that while some sectors witnessed augmented employment due to AI integration, others encountered workforce reduction.
The initial emphasis on substituting human labor for efficiency gains has transitioned to a collaborative framework involving humans and machines (Decker et al., 2017). Nevertheless, the primary concern since the introduction of AI has been the potential erosion of jobs and the replacement of human labor with machines, with a focus on organizational economic benefits such as lowered costs, heightened profitability, competitiveness, and enhanced production efficiency (Dirican, 2015).
In spite of the potential advantages linked to the integration of AI, employees on a global scale have voiced anxieties regarding potential job displacement. Just a minority of workers view AI as a supplementary tool within work procedures. A substantial number of employers and management groups perceive machines as cost-efficient alternatives capable of extended work hours and multitasking devoid of wage requirements (Qureshi and Syed, 2014). Nevertheless, the implementation of AI has not gained widespread traction, as fewer than 39% of companies worldwide have adopted AI strategies (Ranbotham et al., 2017).
As organizations worldwide, Africa included, embrace technological progress, AI systems, and the force of globalization, employees who resist upgrading their knowledge, skills, and attitudes confront worries related tojob security, redundancy, and potential job cuts (Elumelu, 2019).
Within this framework, Nigeria, notably in Lagos, as an emerging technology hub, remains susceptible to the impact of AI. Despite global trends showcasing an increasing embrace of AI strategies, its incorporation within Nigeria is still relatively limited (Ranbotham et al., 2017). The potential consequences for job stability and the intricate interplay among technology, workforce, and organizational dynamics demand thorough empirical investigation, particularly within Nigeria's IT sector.
1.2 Statement of the Problem
The integration of AI into the operations of IT firms has the potential to reshape job roles, change work dynamics, and alterjob security perceptions among employees. However, this technological shift also raises concerns about job displacement, reducedjob security, and the broader implications for individuals and organizations. In light of the transformative nature of AI, it is essential to conduct an empirical study to understand how AI adoption within IT firms in Lagos is influencingjob security perceptions and outcomes.
1.3 Aim of the Study
The primary aim of this study is to empirically examine the effects of AI onjob security within the context of select IT firms in Lagos.
1.4 Research Objectives
The specific objectives of this study are as follows:
- To assess the level of AI integration within selected IT firms in Lagos.
- To analyze the changes in job roles and responsibilities resulting from AI adoption.
- To examine the perceptions of employees regarding AI and its impact on theirjob security.
1.5 Research Questions
To achieve the objectives of the study, the following research questions will guide the research process:
- To what extent have AI technologies been integrated into the operations of selected IT firms in Lagos?
- How have job roles and responsibilities within these IT firms changed in response to AI adoption?
- What are the perceptions of employees regarding the impact of AI on theirjob security?
1.6 Research Hypothesis
H0: There is no significant difference in the effect of AI onjob security in selected IT firms in Lagos
Ha: There is a significant difference in the effect of AI onjob security in selected IT firms in Lagos
1.7 Justification of the Study
This study holds significance due to the increasing influence of AI onjob security, especially in industries like IT. As AI adoption becomes more prevalent, understanding its effects onjob security and formulating appropriate strategies to address potential challenges becomes crucial. This research will contribute to the existing body of knowledge by providing empirical insights specific to the Lagos IT sector, which can inform policymakers, business leaders, and employees about the implications of AI adoption.
1.8 Scope of the Study
The scope is limited to the Lagos context and the IT sector, providing a comprehensive analysis of the effects of AI onjob security within this specific setting.
