Smart technologies aren’t just changing our homes; they’re edging their way into their numerous industries and are disrupting the workplace. Artificial Intelligence (AI) has the potential to improve productivity, efficiency and accuracy across an organization – but is this entirely beneficial? Many fear that the rise of AI will lead to machines and robots replacing human workers and view this progression in technology as a threat rather than a tool to better ourselves.
Friend or Foe?
With AI continuing to be a prominent buzzword in 2019, businesses need to realize that self-learning and black-box capabilities are not the panacea. Many organizations are already beginning to see the incredible capabilities of AI, using these advantages to enhance human intelligence and gain real value from their data.
As there is increasing evidence demonstrating the benefits of intelligent systems, more decision-makers in the boardroom are gaining a better understanding of what AI can really offer. Research conducted by EY explains “organizations enabling AI at the enterprise level are increasing operational efficiency, making faster, more informed decisions and innovating new products and services.”
The first companies employing AI systems across the board will gain competitive advantage, reduce cost of operations and remove head counts. While this may be positive from a business perspective, it is obvious why this a worry for those working in roles at risk of displacement. The introduction of these technologies will likely trigger an issue with unions and job security due to substantial operational changes.
Although AI will affect every sector in some way, not every job is at equal risk. PwC predicts a relatively low displacement of jobs (around 3 percent) in the first wave of automation, but this could dramatically increase up to 30 percent by the mid-2030’s. Occupations within the transport industry could potentially be at much greater risk, whereas jobs requiring social, emotional and literary abilities are at the lowest risk of displacement.
A Positive Future With Artificial Intelligence
Many businesses and individuals are optimistic that this AI-driven shift in the workplace will result in more jobs being created than lost. As we develop innovative technologies, AI will have a positive impact on our economy by creating jobs that require the skill set to implement new systems. 80 percent of respondents in the EY survey said it was the lack of these skills that was the biggest challenge when employing AI programs.
It is likely that artificial intelligence will soon replace jobs involving repetitive or basic problem-solving tasks, and even go beyond current human capability. AI systems will be making decisions instead of humans in industrial settings, customer service roles and within financial institutions. Automated decisioning will be responsible for tasks such as approving loans, deciding whether a customer should be onboarded or identifying corruption and financial crime.
Organizations will benefit from an increase in productivity as a result of greater automation, meaning more revenue will be generated. This thus provides additional money to spend on supporting jobs in the services sector.
How to Take Advantage of AI
Due to the vast array of jobs that could be impacted by AI, it is fundamental to address the potential pitfalls of these technologies.
- Business need to overcome the trust and bias issues surrounding AI by achieving an effective and successful implementation that makes it possible for everyone to benefit.
- Governments must ensure that gains from AI are shared widely across society to prevent social inequality between those affected and unaffected by these developments. For example, this could be through increased investment into training.
- With the additional cost-savings from implementing AI systems, employers should also focus on upskilling their current employees.
To properly leverage the power of AI, we need to address the issue at an educational level, as well as in business. Education systems needs to focus on training students in roles directly associated to working with AI, including programmers and data analysts. This requires more emphasis to be put on STEM subjects (science, technology, engineering and mathematics). Also, subjects centered around building creative, social and emotional skills should be encouraged. Whilst artificial intelligence will be more productive than human workers for repetitive tasks, humans will always outperform machines in jobs requiring relationship-building and imagination.
Artificial intelligence will change our world both inside and outside the workplace. Instead of focusing on the fear surrounding automation, businesses need to embrace these new technologies to ensure they implement the most effective AI systems to enhance and compliment human intelligence.
The views of the author of this article do not necessarily represent the views of Gradifi. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained here. Readers should consult their own attorneys or other tax or financial advisors to understand the tax, financial and legal consequences of any strategies mentioned in this article.