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16435111
causes, evolution
and
implications...
Business in Society
BUS1009
Tutor - Diepiriye Kuku-Siemons
January, 2017
Arising concerns about unemployment caused by automation and artificial intelligence
it possible for human beings to adapt quickly enough for a rapidly emerging skill gap in
IT industry?
It has slipped into our very core of lifestyles, values and culture. Although it has not
started just yesterday, it is all encompassing and hugely influential phenomenon which
is going to change literally every aspect of our life in near future and has already since
the industrial revolution of 19th century. It has not only changed us as human beings, it
has affected how the planet itself looks like. When such a transformational power
although some can argue on that topic, here we will look exactly how it happens on a
few examples from industries closely related and mostly affected by this process.
fishing industry and by 2011 this had fallen to less than 1%, manufacturing industry
diminished from 36% to 9%, with services risen from 31% to a dominant 81%(The
National Archives and Census Analysis 2011, 2013). This is a significant shift that was
both painful and challenging on one side, as well as exciting and transformational on
the other. Google trend analysis (Google Ngram viewer, 2017) shows how these
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processes were interconnected with unemployment, in a media coverage over a period
in time, gaining peak correlation in 20th century middle 80s, exactly in the time of
creation of a World Wide Web. Also data from UK National Archive and Census
The reason this topic is urgent is that these changes though in a human evolution
span were already rapid in its own right, now considering whether exponentiating
Moores law changes the game rule in a more dramatic ways? People can certainly
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adapt, new professions can certainly emerge and job places created, but at what
pace? Reid Hoffman cofounder and executive chairman of LinkedIn thinks that the
with a faster ability to have inventions and to scale up and double down on the
inventions that actually work will eventually level up the consequences of automation.
The other much more pessimistic scenario on the other hand where civil instability
caused by mass youth unemployment which is already an issue today, with raised
anxiety about their future can cause a chain of serious complications (McKinsey, 2014).
What will happen to 81% of a major service industry workers in UK when it will
finance sector or driverless cars in logistics and supply chains and AI based systems in
e-commerce, wholesale and retailing? What will happen to recently emerged giants like
UBER with estimated 500,000 to 1 million drivers worldwide hundred percent relying
on its drivers with the emergence of driverless cars? There are 17.78 million of taxis
approximately in the world which is a quarter of UKs population, and that is without
delivery drivers and public service transport drivers. In US alone by the end of 2016,
there will be over 4.1 million people who drive for a living. Over 3.5 million are doing it
full-time (Richter, 2016). According to US Census Bureau data the most common job in
Recently Amazon (Hook and Doyle, 2016) has pioneered the industry with its Prime
Air which is completely automated drone delivery system, potentially eliminating the
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need to hire drivers delivering small to medium sized parcels in a near future, which is
basically over 80% of all deliveries. Ford company sales of autonomous vehicles might
account for 20% of its total sales in the US by the end of this decade. GM and other
Googles Deep Mind artificial intelligence based Enlitics system was 50% better at
classifying malignant tumours and had a false-negative rate (where a cancer is missed)
of zero, compared with 7% for the humans. This system is currently being tested in 40
analysing large volumes of legal documents might have been expected to reduce the
number of legal clerks and paralegals, who act as human search engines during the
discovery phase of a case; in fact automation has reduced the cost of discovery and
increased demand for it. Judges are more willing to allow discovery now, because its
cheaper and easier. David Talbot (2011) from MIT Technology Review organization
calls that a "Tectonic Shifts" in employment while Tim Worstall (2016) from Forbes
Matter At All. Richard Cooper an American economist, policy adviser, and academic
explains that whatever changes happen, that will generate income and that income will
be spent, and that spending will eventually create new jobs and employment
(McKinsey, 2014). Michael Morgenstern from The Economist (2016) agrees with him
saying This notion that theres only a finite amount of work to do, and therefore that if
you automate some of it theres less for people to do, is just totally wrong, he says.
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Those sounding warnings about technological unemployment basically ignore the
issue of the economic response to automation, and is that it raises the value of the
tasks that can be done only by humans. And still, no matter how artificial intelligence
has invaded, some jobs likely to be better done by humans, especially those involving
coaching specialist fall into that category. An analysis of the British workforce by a
Deloitte consultancy indicated a profound shift that has happened during past two
decades towards caring jobs: the number of nursing assistants increased by 909%,
Does that mean that all those drivers that eventually will lose their jobs due to
automation will reeducate themselves as care workers and nursing assistants? To what
technologies raises a whole lot of Ethical questions and concerns. A very measure of
between productivity and how its being distributed in terms of wages and the
productivity has gained net 73.4% while hourly pay only 11.1% (Economic Policy
Institute, 2016).
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Rising productivity has provided the potential for substantial growth in wages for the
working majority. However, this potential has not been utilized, the income, wages and
wealth generated over the last four decades have failed to trickle down to the vast
majority largely because policy choices made on behalf of those with the most income,
wealth and power have exacerbated inequality. Laura Tyson professor of business
administration and economics, Haas Business and Public Policy Group, University of
minimum wage today, it would be something like $25 [an hour]. Its certainly not
moving forward at the level of the race. So the policy makers lose the race, and a lot of
displaced workers, a lot of American families, lose the race (McKinsey, 2014).
where oldstyle bank tellers are being replaced by interactive automated programs,
where high-skilled high paid jobs are opposed to low skilled low-paid ones with the
same tendency in customer care call centers and automated tills in retailing. This
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process it places business owners and technology developers in a position of power
and authority which can lead to a greater polarisation of incomes. World Economic
opposed by some other thinkers suggesting that everything will eventually stabilize by
itself. While some think they can just relax and watch the show, others have attained
to a more responsible way of dealing with the issue. And the area being targeted for
this is of a great importance. That is Education, and the good thing about it that indeed
technology itself begins to create curricula that can transform education. Back in the
19th century, education was transformed by the needs of industrialization, such as the
introduction of universal state education based on a factory model where schools were
supplying workers with the right qualifications for factory work. The rise of artificial
intelligence and automation era can do the same again with the transformation of
education through the adaptive learning gauged to individual needs and delivered
online.
In July 2011 Sebastian Thrun, the professor at Stanford University has announced with
his colleague Peter Norvig the opening a new online course Introduction to Artificial
Intelligence. This was their course available online for free, and has received
application from 160,000 people in 190 countries. Another stanford professor Mr.
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Andrew Ng made one of his courses, on machine learning at the same time available
online. Both courses ran for ten weeks. Mr Thruns was completed by 23,000 people;
Mr Ngs by 13,000. Very quickly such online courses became known as MOOCs or
in the same year formed an edX, a nonprofit MOOC provider, with Anant Agarwal, the
acquire new skills throughout their careers. And the fact that Udacity, Coursera and
edX has emerged from Artificial Intelligence research laboratories emphasizes the fact
that AI developers has an ethical responsibility for providing the means of smooth
transition to the new technological era. Mr Ng notes - that given the potential impact
step up and address the problems we cause; Coursera, he says, is his contribution.
One thing is clear the education cannot be the way it used to be, where you learn one
thing in depth once and that is what keeps you going throughout your lifetime, it is now
very much a lifetime of learning and reeducating yourself. And it is the employer's
moral and ethical responsibility to provide the willing workforce with requalification or
ongoing training. Working in partnerships with the providers and ensure the time
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There are different concerns arising considering safety nets protecting people from
labour-market disruption and designed to help them switching to new jobs. Similar to
the ideas held by John Stuart Mill and Thomas Paine during the Industrial Revolution
system that involves paying a fixed amount (say, $10,000 a year) to everyone,
regardless of their situation. Those with a more pessimistic scenario of a labour market
disruption see it as a better way of supporting those in transition and to keep the
economy going. It also gives people more freedom to decide how many hours they are
able to work, encourages them to retrain by providing with a basic guaranteed income
(The Economist, 2016). The study of that idea is even funded by the YCombinator, in
Oakland, California US. Its president Sam Alman says that in a world of rapid
technological change, a basic income could help ensure a smooth transition to the
jobs of the future(The Economist, 2016). Some other countries like Finland and
2017, while some economists argue that basic living schemes might as well discourage
people from retraining and indeed working at all. Although studies from previous
experiments of basic pay schemes suggests that people tend to reduce their working
hours slightly rather than giving it all up. It can also attract a lot of immigrants from
This logically leads us to another implication where policy makers must correlate with
the impact of advanced automation and its effects on geopolitical environment as its
effects will benefit more some countries than the others. Nowadays economists talk
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about a premature industrialization (Rodrik, D, 2016) primarily caused by
manufacturing being much more automated with a peak 15% share in BRIC countries
comparing to Britain with 45% just before the first world war. With no manufacturing
Tyler Cowen, such countries may have high income inequality baked into their core
not so distant future and humanity is already starting to face the consequences. It is by
far much more a complex and all encompassing problem than just a single company or
spheres. What is important is that in a pursuit of the change and benefits of automation
we do not ignore and abandon the value of human work. The fact that we as human
beings are not just men-hours in an economic turnaround wheel, but a willing
contributors of our precious life and energy to the well being of all. Appreciate that the
progress and the kind of benefits we have has not come out of nowhere, it came
through the lifetime of efforts of scientists, explorers and contributors of different kind.
Once the era of automation and artificial intelligence is upon us, the main adjustment in
policy making and legislation as well as human right bill should be the adjustment
stating the value of human work, and its efficiency that should not be measured
companies with extra large profits or significant impacts on society should be rethinked
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in terms of legislative regulation. Cooperatives and alike organizations are the right
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References:
Bui, Q. (2015) Map: The most Common* job in every state. Available at:
http://www.npr.org/sections/money/2015/02/05/382664837/map-the-most-common-jo
b-in-every-state (Accessed: 4 January 2017).
Hook, L. and Doyle, S. (2016) Amazon eyes far horizons for drone launch. Available at:
https://www.ft.com/content/04e09138-3944-11e6-a780-b48ed7b6126f (Accessed: 4
January 2017).
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Richter, W. (2016) Self-driving vehicle revolution to wipe out 4 Million jobs. Available at:
http://wolfstreet.com/2016/09/14/self-driving-vehicle-revolution-to-wipe-out-4-million-j
obs/ (Accessed: 4 January 2017).
McKinsey (2014) Automation, jobs, and the future of work. Available at:
http://www.mckinsey.com/global-themes/employment-and-growth/automation-jobs-a
nd-the-future-of-work (Accessed: 4 January 2017).
The National Archives and Census Analysis 2011 (2013) 170 Years of Industrial Change
across England and Wales. Available at:
http://webarchive.nationalarchives.gov.uk/20160105160709/http://www.ons.gov.uk/on
s/rel/census/2011-census-analysis/170-years-of-industry/170-years-of-industrial-chan
geponent.html (Accessed: 4 January 2017).
Worstall, T. (2016) WEFs Davos report on robots, automation and job loss: A trivial
result of no matter at all. Available at:
http://www.forbes.com/sites/timworstall/2016/01/18/wefs-davos-report-on-robots-aut
omation-and-job-loss-a-trivial-result-of-no-matter-at-all/#21636d3b14f0 (Accessed: 4
January 2017).
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