The Automation Paradox: Will It Lead to More Jobs or Less?
I. Introduction
Unfathomable to many, the Automation Paradox represents a curious concept. It is a technological phenomenon that we try to streamline things and eliminate mistakes made by humans through increased automation. The expected is that such an action would reduce human input but surprisingly this does not occur. Increased automation requires even more human intervention than before which is counterintuitive with common beliefs about these systems.
The shift toward automated workplaces is likely to slow for a while. According to a 2020 Deloitte report, the global automation technologies market has an annual growth rate of 40.6%. And more than two-thirds of companies used automation to address the challenges presented since the COVID-19 pandemic which has further reduced the job creation.
The paradox arises because of how complicatedly intertwined man has become with machines. When we create systems of automation to cut down on labor or time spent doing tasks among others, they tend to bring about new problems and difficulties. Usually, this means some form of human input is necessary which could eventually translate into people working alongside machines in various capacities.
II. The Two Sides of the Coin
Before understanding whether automation is advantageous to us or disadvantageous, we must consider both sides of it. Let us understand it more deeply.
A. Job Displacement Due to Automation
Automation has historically resulted in job losses, as repetitive and manual tasks are taken over by machines. A report by McKinsey suggests that up to 30% of current job activities could be automated by 2030, potentially putting millions out of work.
The impact of this change is most noticeable in sectors like manufacturing where robots and other forms of automated equipment now do what used to be done along assembly lines which has affected job creation furthermore.
For instance, self-service checkouts have become widely used within retail thereby minimizing the requirement for cashiers while in automobile production advanced robotics handle tasks that were once manual. Also, there are fewer bank tellers employed within the banking industry due to ATMs and online banking facilities being increasingly utilized.
Such displacements give rise to fears concerning ‘technological unemployment’. It is a situation where workers find themselves redundant as their skills become outdated in light of new technologies, leading to a loss of income and job security for many.
The ratio of vacancies to employees reached maximum levels in the first quarter of 2023, since September 2013, which is when the vacancy statistics began. In total, around 150,000 unfilled jobs, according to data from the National Institute of Statistics (INE).
B. Job Creation Through New Industries and Tasks
Automation creates positions. Human beings will be needed in new industries created by new technologies for purposes like developing AI, maintaining machines, and analyzing data.
According to the Future of Jobs Report by the World Economic Forum, 85 million jobs may disappear by 2025 due to automation, but it could also generate 97 million jobs. Most of these jobs have been created in sectors that were non-existent ten years ago such as renewable energy, biotechnology, and cybersecurity.
The logistics and warehousing sectors have experienced tremendous growth fuelled by e-commerce. Amazon and Alibaba are some of the companies that mainly use automated systems for sorting and packaging. However, they require a huge workforce to operate these systems and handle more complicated tasks.
The healthcare sector is another area where automation creates jobs. Advanced diagnostic tools and telemedicine require skilled technicians and healthcare professionals to operate and interpret data.
III. Historical Context
Automation has transformed the job landscape. One example of this is the Industrial Revolution. While it took away many forms of manual employment, it also created them in manufacturing and services.
The need for textile factories grew after the steam engine began to be used together with other machines like power looms thereby increasing production capacity which was realized by steel industries too. These changes required people who had different abilities so urban areas started developing due to large numbers being employed there.
Another instance where jobs have been lost due to innovation but gained in another way can be seen during the era when computers were invented.
The coming of the digital age led to decreased demand for clerical work for example typing pool staff members or even telephone switchboard operators. However, it brought about an increase in information technology-related fields e.g., programming software development, etc., thereby creating more employment opportunities.
One thing that has always remained constant throughout history is change itself – only this time round everything seems faster than before!
IV. The Future of Work
Challenges and opportunities are both brought about by the future of work. Automation may cause technological unemployment where employees’ skills become outdated.
A. Challenges and Opportunities Presented by Automation
According to a study conducted by McKinsey Global Institute in 2017, it is estimated that by 2030, approximately 375 million workers across the world might be required to change occupational fields as a result of automation. It is important to note that these changes will affect some industries more than others and demographics differently.
On the other hand, automation also creates room for higher productivity levels as well as new industries. Data scientists, AI specialists, and ML engineers are some of the professionals who are in demand due to artificial intelligence (AI) and machine learning (ML). Such careers need great expertise and they offer good pay.
Furthermore, job quality can be enhanced through automation by taking up repetitive, hazardous, or monotonous tasks. In agriculture, autonomous tractors and drones reduce the need for manual labor in planting and harvesting, making farming more efficient and safer. In construction, robots can perform hazardous tasks such as demolition and high-rise buildings, reducing the risk of injury to human workers.
B. Importance of Reskilling and Upskilling the Workforce
Reskilling and upskilling are two important acts individuals must perform if they are to deal with the automation riddle. Employees must learn new skills as job requirements change. To stay competitive in the future job market, 74% of the workforce is ready to acquire additional skills according to a survey by PwC. Government, industry, and academic institutions are expected to work together in providing training programs that will prepare employees for future employment opportunities.
According to IBM and Siemens, apprenticeships and on-the-job training programs have proved to be effective ways of reskilling employees. Such companies have set up apprenticeship programs that focus on areas like cybersecurity, software development, and advanced manufacturing. These initiatives offer practical experience and help in filling the skills gap.
E-learning tools are accessible with courses in innovative technologies and trends. These online platforms make Education possible for individuals across the globe and for workers to further their education at their flexible times. Existing as professional networks and marketing hubs, these platforms also enable workers to gain certifications in emerging fields like data science, artificial intelligence, cloud computing, etc., to prove their worth to employers.
Automation Paradox: Understand this through a few examples
Imagine that you are Apple and you manufacture the iPhone 14 that sells for €1,000 each, to put a round number. Also, imagine that the production line is super automated. It would be missing more! The only human intervention is to start the line and proceed to quality control by sampling. Let's say we have a manufacturing line and it assembles 10,000 units per day, at a rate of 416 per hour or 7 per minute. Now imagine that something goes wrong and due to a system error, a defective microchip is assembled without being detected until 12 hours later. 4,992 units are manufactured incorrectly. The banter would cost almost €5 million, at retail price! We will no longer tell you the negative impact that this has on the brand, either due to delays in deliveries or because defective units escape the market.
That is the Automation Paradox.
- The greater the efficiency of a system, the more important the people who govern it are.
- In every system, unexpected circumstances will always occur that automation is not prepared to resolve. As the reliability of a system increases, the more difficult it is to detect an error and even more difficult to resolve it quickly.
Let’s explain two more high-profile cases of monumental mistakes that large companies have suffered as a result of this automation paradox. You take a look at them and when you decide to automate, always keep in mind the importance of the role of people:
1. Samsung Galaxy Note 7 (2016):
– Affected units: It is estimated that around 2.5 million units of the Galaxy Note 7 were manufactured before it was recalled.
– Estimated losses: Samsung initially estimated that the Galaxy Note 7 recall would cost it around $5.3 billion in operating profits over several quarters. Furthermore, the total cost of the crisis could have been even higher, since it also includes the costs of changing and refunding customers, as well as the damage to reputation that has an infinite cost.
2. Volkswagen and the emissions scandal (2015):
– Units affected: Approximately 11 million vehicles worldwide were equipped with the emissions manipulation software.
– Estimated losses: Volkswagen announced that it would set aside around 7.2 billion euros to cover costs related to the scandal, which included fines, reparations and legal claims. However, some estimates suggest that the total cost could have been much higher, reaching tens of billions of dollars in financial losses and brand damage.
V. Conclusion
A. Summarize the Complexity of the Issue
In the Automation Paradox, it is discovered that the rise of automation may have a positive impact on employment in the long run. The primary misunderstanding is that robotic automation undermines the job market, but that new kinds of work emerge in response to it. To fix this, both chatbot relationships and possibilities should be stressed. It is seen that the Automation Paradox needs to be addressed to make the best use of the abilities of the people and enhance the improvements that only smart automation can bring to the future of society.
B. Potential Solutions and Areas for Further Discussion
As the future unfolds in a world where the human role in the automation process steadily remains a question of discussion, it is vital to focus on the significance of people's contribution to this process. The automation paradox is a good testimony that although this facet has promising possibilities, it is only partial as it will never provide initiative, ideas, and versatility.
1) Reskilling and Upskilling Initiatives
Extensive reskilling and upskilling strategies must be undertaken to curb the effects of job displacement. Such measures should target the avocation of training the workforce in areas of demand for new economy vocations and professions.
2) Balanced Automation Implementation
It remains the responsibility of the business to assess which tasks are most suitable to be redesigned to gain efficiency and productivity while maintaining a balance with responsiveness. It can also be noted that defining particular organizational processes as automated ‘robotized’ allows focusing on those processes that require closer attention and, usually, creative approaches.
3) Continuous Monitoring and Adaptation
It is vital to analyse those effects and make any changes given the advancement of technologies in the area of automation. To promote the reliability of the automated decision, there should be regular tests and feedback regarding possible problems and solutions.
4) Ethical Considerations and Responsible Development
Automation is beneficial but it should be implemented in a manner that at least takes into consideration an ethical plan. Therefore, transparency, fairness, and accountability in AI/automation systems must be implemented to prevent negative outcomes that may be caused by imperfections.
5) Promoting Lifelong Learning
Promoting learning as an ongoing process that is highly valued is also important to assist the current workforce in preparing for the dynamic nature of the employment environment. This implies education and training will allow individuals to meet the demands of their fields and adapt to the new technologies available in the market.
