OpenAI‘s LLM signals paradigm shift in labor economy with coding prowess
OpenAI has recently published research that highlights the performance of its o1 Large Language Model (LLM), which is used in tech companies to assess engineering candidates and new products. This suggests that the employment landscape, especially in fields such as software development, could be reshaped.
Its coding abilities were demonstrated by the o1 LLM, which achieved a ranking of 49th percentile in 2024’s International Olympiad in Informatics. It also demonstrated its coding skills in HackerRank challenges. This showed the potential of AI agents and tools to support or empower programmers, including non-technical individuals. A potential impact is the ability to attract highly-paid and desired programmers.
**o1 LLM’s Performance on HackerRank’s Astra Challenge**
HackerRank’s Astra assessment found that the o1 LLM had a success rate on first attempts of 63% to 76% for complex software development tasks relevant to industry. OpenAI stated that the AI model was “almost as good” as the top humans.
Experts like DiCarlo believe that AI has advanced to the point where “humans have no more to offer”. [in some work situations]… No human can help improve upon what AI does. “We’re still not there.” This phase of transition presents AI with opportunities to increase human productivity, while also progressing towards a capability that could replace programmers or empower non-technical staff members with programming skills. It is ultimately up to executives how they choose to use this technology.
**Navigating the Evolving Landscape: The Role of Policy Decisions**
DiCarlo says that “AI-tech-facilitated development will help existing systems, and likely replace them. But right now, it is helping us.” The “guardrails,” and the “cost to mankind” will be shaped by policy decisions.
**Future-Proofing Careers: Embracing Human-Centric Roles**
DiCarlo says that occupations which involve human interaction or physical manipulation, such as trades and manual work, are more secure. The plumber is always needed, he says.
Some people see this as an opening for them to try new things, including freelancing and emerging industries. As technology evolved from spreadsheets and the internet to new forms of leisure, it has led to the creation roles such as yoga instructors or social-media managers.
Schwartz is a 26 year old CEO who believes that AI will eliminate the mundane tasks of office life. Since its launch in 2021, his platform has helped to create over 150 millionaires.
**The Arrival of a New Technological Frontier**
OpenAI’s progress with the o1 LLM mirrors past technological milestones, where AI systems demonstrated proficiency in games like checkers, chess, and even the game show *Jeopardy!*, symbolizing their ability to handle increasingly complex problems, according to DiCarlo.
It is surprising how quickly AI has developed. This has led policymakers to accelerate projections of a future economy based on large language models.
**The Implications for Businesses and Society**
AI’s potential raises questions that are fundamental to the nature of business. Is it a matter of maximizing profits or is the goal of collaborating and creating jobs important? It is becoming more and more plausible to imagine a one-person business augmented with AI bots that handle finance, marketing, or sales.
DiCarlo says that businesses need to decide “if they only want to make money then this is the way.” You can use hybrid settings if your goal is to keep people in the loop and care about the community.
**Addressing the Coming Economic Transformation**
As rapid change is on the horizon for business leaders, they have to be prepared to adjust and create safeguards that will prevent economic instabilities.
DiCarlo warns that “the economic landscape is going to change big time in a very short period… So what are we doing to prepare for that? What can we do to help the people as AI becomes more powerful and job losses continue? How can people maintain a balance in their lives? We’re dealing with human beings.”