If the industrial revolution taught us anything, is that disruptive paradigm-shifting business models do not only make a fortune for the first business people to adopt them. They also lay a foundation for other business models, new market entrants, and the promise of new jobs. For a long time, workers have feared that they may be replaced by machines and left permanently jobless. With the current age of automation, the fear is hardly unfounded.
In most sectors, robots will replace humans for many jobs as innovative farming equipment and horses replaced humans during the industrial revolution. New automation comes with more advanced robotics and artificial intelligence (AI) which set it apart from the past generations and are likely to cause more job displacement. This only means that change is happening and therefore calls for adaptation. The age of automation will not make employees obsolete. In this blog, we examine the implications of the age of automation, how it is different from the past, and its policy implications.
In hindsight, automation tends to create as many jobs as it destroys over time. Employees who can employ machinery in their regular work are more productive than those who are unable to. It reduces the costs of both goods and services, making consumers feel wealthier and therefore spend more which in turn leads to job creation.
Employees who are replaced by machines are the most likely to face complete loss of jobs or competition. The age of automation has indeed contributed greatly to the inequality in labor markets. Many clerical and production workers continue to lose their jobs and earn lesser wages while new jobs are being created and more educated analytical employees are getting good pay from such jobs. Employees in the personal services sector are still faced with the issue of lower wages.
More importantly, workers who are capable of complementing new automation like artificial intelligence (AI) by performing tasks beyond the abilities of machines often enjoy rising compensation. However, workers who perform similar tasks as AI or robots are left worse off or without employment. For example, in 2018, Tesla let go of hundreds of human employees in a drive for full automation which they later discovered had been an overestimation on their part. Automation tends to benefit business owners who enjoy higher profits with less need for labor. However, it should be noted that this is not always the case. Tesla lost so much money due to mass automation. Workers stand a chance to gain more training and education which makes them great complements to machines.
Is the New Age of Automation Different from the Past?Over the next few decades, the new age of automation will lead to the development of much more advanced robotics and AI. This will widen the range of tasks that can be performed by machines. Companies are developing their robotics expertise and AI with the idea that they’ll be able to cut costs, offer new value propositions, execute new business models, increase efficiency or perform all the above tasks at the same time.
Is there impending doom within these trends? Yes. Are there new exciting opportunities that will change the dynamics? Also yes. The new age of automation is likely to affect college graduates and professionals more than other older generations if automation. It will eliminate millions of jobs from retail workers, healthcare workers, drivers, accountants, lawyers, and other specialists.
The new age of automation is different and this calls for a much more robust set of policy responses to ensure employee adaptation to automation so that everyone can share in its benefits. The challenges faced by employees due to automation are likely to double or triple. However, it will also contribute to higher standards of living because of higher work productivity
Policy ImplicationsHumans are susceptible to change especially in the face of life-changing technological tools like robots and AI. Millennials are tasked to continue approaching their work with a completely different mindset from the generations before them. For instance, they tend to demand greater transparency and values-aligned conduct in business transactions.
They are more likely to support a business that instills values beyond the bottom line than older members of society. Humans also adapt to new employment models which they feel make them more productive as well as affords them a work-life balance. These new workers want to be able to work in environments they find more comfortable. For example; working from home.
There is a rise in communal workplaces where groups of workers come together from different companies, locations, and fields to work together in one communal space. Individuals or small companies will rent out space in a common work area instead of having their private workspace. This arrangement can be great for both productivity and creativity.
No, human employees are not becoming obsolete in the age of automation. The age of automation is affecting jobs by both leading to job loss and creation. While some may benefit from it, others' wages are being reduced. Employees that can complement automation are most likely to enjoy the benefits of a compensation rise. The new age of automation is different from the previous generations because it is more likely to affect college graduates and professionals more than they did. Therefore, to ensure employee adaptation, there is a need for policy responses in terms of training and adaptation. Human workers are evolving and adapting to new ways of becoming more productive and creative while maintaining a work-life balance. To get additional information, head on to our blog to access more content. You can also book Emmanuel Ekwedike PH.D. for a keynote address on artificial intelligence (AI) and machine learning (ML) technologies. He is a published researcher, dynamic keynote speaker, and notable consultant.
Emmanuel Ekwedike"Born and raised in Nigeria, this driven AI Research Engineer relocated to Queens, NY at 18 years-old, in pursuit of a higher quality tertiary education and more opportunities for a promising future."
