With the explosion of digital technology comes the age of AI and automation. World is seeing maximum disruption as well as evolution of Industries across economies. Financial sector is being reshaped by fintech approach, Manufacturing industry is using AI to make real-time production decisions, Healthcare is seeing major innovations and changing techniques brought about by AI, there is changed the scope of retail industry worldwide with AI and digitization. Self- driven cars are not far from becoming a common feature in Automobile industry so on and so forth.
Implementing AI and automation technology can uplift the global prosperity, when ageing and falling birth rates are dragging the growth. Labor productivity is an important aspect of economic growth and with the increasing automation and AI developments, productivity growth can take a U turn from decline phase to increasing trends. A consulting company identified that productivity-growth can increase by 2 percent annually over the next decade, with 60 percent of this increase will come from digital opportunities.
Automation can cut down almost half of the tasks that are performed daily on the job across all sectors. There are around 5 percent of jobs that are fully-automatable. Whereas majority of occupations have 30 percent of the activities that can be automated. This means that most of the workforce will start working alongside rapidly evolving machines, altering the nature of the work. As the manual and repetitive tasks would decrease, it will enable workers to handle more managerial and other work that machines can’t do. For example, AI algorithms can read diagnostic scans with a high degree of accuracy will help doctors diagnose patient cases and identify suitable treatment fast and with more personal attention.
The requirement for skill set will shift and the rate of this adaptation or skill improvement would be much faster as compared to last few decades. Alongside the demand for advanced technical skills, there will an increase demand for social skills, emotional skills for better critical thinking and higher cognitive skills. Below is an estimation of change in hours spent from 2016 to 2030 across various skills set.
Well, whenever there is a transformation taking place there happens to be hurdles in the way. With automation and AI transformation there are challenges, some of them are technical and societal while others are related to human adaptability. There would be job displacements and income polarization in effect with the changing job scenarios, but again with the economic growth being realized though digitization will come in rise in demand. This increase in demand for goods and services would lead to creation of more and better skilled jobs. So there will be enough work for everyone alongside the technological advancements. This is close to ideal scenario and such growth can not be realized unless things happen in coordination. It requires policy makers to promote investments in infrastructure, sustainable energy, healthcare; Corporations to redesign workforce training programs and many more.
Technology brought the revolution before and now its time for greater evolution for every sector including human skills and capabilities.
Reference:
https://www.gsb.stanford.edu/insights/tech-disruption-good-economy
Nice reading, Anjali!
I think that indeed AI will have a great impact on businesses across the whole spectrum of industries, and that we should embrace those changes that will make humans focus on the most high-end tasks instead of repetitive ones.
However, what worries me the most is whether humans have the necessary skills to focus on those activities, because in the future and with AI pushing the necessary skill set upwards, a mismatch between the skills needed and the existing skills can take place. According with predictive data from “Our World in Data”, in 2020 only 15% of the world population will have Post Secondary education. Even in 2040, this number will only grow to 20%.
Furthermore, what also concerns me is the effect on the world’s distribution of wealth, and it is becoming more evident that pushing the less skilled labors out of jobs will have its toll mostly in underdeveloped countries.
Do you think AI will also help fighting this?
Source:
https://ourworldindata.org/projection-of-the-world-population-by-level-of-education