As AI Emerges, Las Vegas Braces for a New Era

JJohn September 4, 2023 12:02 PM

As artificial intelligence (AI) and robotics continue to advance, Las Vegas, a city heavily reliant on the service and hospitality industry, faces a paradigm shift. The increasing use of machines and AI in various roles traditionally performed by humans has sparked concerns and prompted unions to step up their efforts to safeguard workers' rights.

Robots take over the Las Vegas strip

A stroll down the Las Vegas strip reveals a growing use of automation and artificial intelligence in businesses. From self-service check-in kiosks at hotels to text-bots making restaurant recommendations, these developments are hard to miss. The most striking example perhaps, is the 'Tipsy Robot' - a bar that employs robots to serve drinks to customers. According to studies, the city could expect anywhere between 38% to 65% of jobs to be automated by 2035.

John Restrepo, principal at RCG Economics in Las Vegas, asserts that the city needs to reshape its economy. As AI continues to advance and replace human jobs without affecting productivity, profits, or customer experience, it's crucial for the city to diversify its economy. The focus should be on higher-skilled occupations that are more resilient to AI-driven automation, ensuring a balanced and resilient local economy even as technology continues to evolve.

Unions brace for AI's impact on jobs

The rise of AI has not gone unnoticed by labor unions. The Culinary Union, Nevada's largest that represents 60,000 service and hospitality workers, is gearing up for a fight. The union is seeking contract protections against job displacement due to AI, and is even prepared to strike if necessary. In the past, the union has successfully pushed for companies to give a six-month warning to workers before introducing new technology at the workplace and provide free training on how to use it.

Despite the looming threat of AI, some workers remain optimistic. Service industry workers believe that their roles can't fully be automated, arguing that machines lack the human touch and can't provide the same experience. Additionally, they trust that their unions will establish good protections. For instance, Holly Lang, a cocktail waitress at the MGM Grand, voiced her trust in the Culinary Union's ability to protect their jobs.

AI's broader impact on the workforce

The reach of AI extends beyond the service industry. Advanced AI technology, like ChatGPT, has the potential to impact white-collar jobs in fields like accounting and data entry. While some roles might be eliminated, AI could also bolster productivity in others and create entirely new jobs that we can't yet conceive. Las Vegas officials are already preparing workers for this eventual shift, with initiatives like the Chamber of Commerce hosting panels on using AI.

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