Will Data Entry Jobs be Replaced by AI? (My Full Take)

Over the past couple of years, there has been one significant improvement in technology, and that is the increase in artificial intelligence (AI) applications.

We have seen AI being used in e-commerce, navigation, robotics, and more, and they have significantly improved the processes in each field.

However, the advancement of AI doesn’t come without a cost, and one of the main aspects that are affected by this change is job availability.

Since AI can do the work of practically a whole department, more and more people fear losing their jobs when AI is implemented to replace what they do.

And one of the most vulnerable jobs that can be replaced by AI out there are data entry jobs.

This article will give you my full take on the question, will data entry jobs be replaced by AI?

What is artificial intelligence, and what is it good for?

Before we answer the looming question, let’s first understand what AI is. Artificial intelligence is the simulation or approximation of software-coded heuristics. Programmers create software that can perform specific tasks done by humans automatically.

The software can then do the work of several people, which can make the bottom line of a company a lot more positive because they don’t have to pay the wages of multiple people. Plus, work tends to be faster when the software is running the show, which will result in increased productivity.

This is especially true in the field of data entry. Data can be quickly gathered using AI, which can potentially eliminate the need for data entry manpower, and you will understand why in the next section.

What is data entry?

Now that you know what AI is about, let’s discuss what data entry is.

Data entry jobs are a form of clerical job that requires typing or even voice recording for inputting data into computers. The data entered can then be used for various purposes that are important for certain functions.

Data entry jobs involve several processes, including compiling, inputting, checking, and generating. Before AI became popular, these processes were generally handled by multiple individuals to make the work more efficient and much more streamlined.

These jobs are repetitive, as well as predictable, so it’s easy to understand why it is one of the potential fields that can be replaced by AI because the tasks can easily be mimicked. Most of the time, the execution of tasks requires only a small amount of human judgment. In fact, you can even qualify these jobs as almost mechanical.

In the next section, I will discuss what are the reasons why AI can potentially replace this type of job.

Why can AI replace data entry jobs?

As you can probably already infer, the number one reason why data entry jobs are particularly vulnerable to AI replacement is the repetitive nature of the work needed. The mechanical-like nature of the work can easily be mimicked by computer programs.

You just need to give the program the right set of instructions to follow, and it can do all the work for you with more efficiency and accuracy. You see, if a human does all the data entry work, they are prone to fatigue, and even burnout, which can eventually lead to errors.

In this field, accuracy is king, so you can’t afford to input false data because it can significantly affect the overall productivity of a company or service.

So, in my opinion (and probably all other experts), the push for automation in this field is mainly driven by the need to eliminate mistakes and make the whole process more efficient (which is also quite true in all technological advancements).

With more companies pushing automation to increase their bottom line, tailor-made automation processes for data entry tasks have also increased, which is becoming the trend nowadays. This is why the sentiment of data entry jobs being replaced by AI was born.

Another factor that added to this sentiment is the fact that using tailor-made automation processes is cheaper in the long run. It can be quite pricey at the start because developing tailor-made automation processes is quite expensive, but they are cheaper and easier to maintain compared to human workers.

Plus, as a business/company owner, you don’t have to worry about the emotional aspect because you are dealing with machines. With workers, you’ll have to deal with complaints, figure out promotions, and more.

All these factors make AI replacement for data entry jobs very alluring for business/company owners.

But the question is, are they right to do so? That’s what I will answer in the next section.

Should AI replace data entry jobs?  

This question involves a lot of gray areas, in my opinion.

If we are strictly talking about the old data entry processes where we only input structured data, then my answer is YES. Using AI can definitely increase the efficiency and productivity of companies that only need structured data.

Unstructured data, on the other hand, is a different story. For AI to replace data entry jobs that process unstructured data, the AI software must be calibrated to do that properly.

Over the past couple of years, there have been significant strides made to achieve this goal, but it is still nowhere close to what humans are capable of. And the whole reason for that is the complexity of the human brain. If a human is presented with a problem, they can use their creativity to find solutions for that problem. For an AI to do that, it must be calibrated and trained, and the way to do that is to convert raw data into smart data that the AI can understand.

To do that, you need to gather data that only human beings can process since it requires a level of thinking and analysis that a machine still can’t do. If you’ve seen any of the Terminator movies, you will understand what I’m referring to.

Therefore, data entry jobs are still required, but the profile of the jobs has evolved. As the AI trend continues to grow, there will still be a need for data entry workers. The only difference is that workers will now be processing different types of data that will be used for AI.

According to a study done by UpWork, which is a popular source of data entry jobs, companies are looking to hire more because of the upward trend of generative AI (the type of AI that usually replaces data entry jobs). The study says that a lot of companies’ sentiment is that blind trust in AI can lead to customer dissatisfaction, which can ultimately ruin a business.

This is why more and more companies embracing generative AI must also consider how to best harness its potential both for their workforce and business to achieve better customer satisfaction.

The study concludes that AI should only be considered a force multiplier for team members and the business – an amplification effect and not a substitution effect.

The study also concludes that “Teams should be encouraged to use generative AI to support their work in order to enable newfound productivity and creativity.”

Final Thoughts

The advancement of technology today has made it possible to replace legacy data entry jobs. But to completely eliminate the need for data entry jobs is still impossible. There is still a need for this type of job, especially in terms of processing unstructured data.

The only difference is the profile of the job that data entry workers need to do will evolve. Just like what happened during the Industrial Revolution, the workers also needed to adapt. Instead of just doing repetitive work, data entry workers now will need to flex their brain muscles and do some creative thinking and analysis to perform data entry tasks.

This is the future I see with data entry jobs. So, if you are a data entry worker, you must acquire the right skills and experience to handle this new face of data entry if you still want to keep up. Sooner or later, we also need to evolve, right?

If you have any feedback or questions, I would love to hear from you in a comment below.