Self-driving automobiles, economic and social considerations
If I had asked people what they wanted, they would have said faster horses — Henry Ford
In the third blog post, I will explore some of the financial and social implications of self-driving automobiles. I intend to cover this from both society/country and company’s perspective. It is a logical extension from last post. It is always hard to predict the future as there could be many inventions, discoveries and incidents which could alter the course. Still, I want to hazard a prediction on the economic and social impacts of the self-driving automobiles.
Self-driving vehicles and automation at large threatens to damage the livelihood of lower income groups and can be fissiparous. It will invariably increase the gap between the “haves” and the “have nots”, which will lead to social friction and instability.
This inequality might not lead companies to growth they desire as consumption and spending by masses might go down. There are different schools of thought on how to tackle these challenges and few initiatives such as Universal basic income has gained prominence.
There are approximately 3.5 million professional truck drivers in the United States, according to estimates by the American Trucking Association. If Autonomous long haul trucks (ALHT’s) comes into existence, then 3.5 million truck drivers would go jobless.
As pointed out by concerned classmates in previous blog post’s comments, the impact of self-driving vehicles on drivers and allied jobs like valet parking could be enormous.
The evolution of implementation is not clear yet. Both traditional car manufacturers and non-automobile companies are in the race to build this technology, car other equipment manufacturers (OEM’s) are already being disrupted.
As a broader effort, automobile companies need to consider the whole ecosystem of manufacturing, managing their workforce, car servicing and emerging mobility models. Changes in this landscape are evident as manufactures such as Volvo, General Motors and Mahindra have started to partner with ride sharing services like Uber, Lyft and Ola.
Week 5’s reading about Information technology as a social phenomenon discussed when motor cars came to existence, decisions of urban planning were made around automobile as the primary mode of transportation. By and large this remains still true today.
The evolution of self-driving car along with other trends such as sharing economy will redefine how we commute and even work. For instance, information workers with an hour’s commute might start their work hour when they get into a self-driving car.
The self- driving automobiles can be described as a part of wider automation effort in different industries. Industries need to reduce costs, improve efficiency and productivity to stay ahead in this competitive globalised world. There are several jobs which doesn’t exists because of alternative technological offering or due to changes in consumption.
The crucial factor might be the duration of the change. If self-driving cars come to effect and if adopted faster, it will lead to massive unemployment. Yuval Noah Harari, a famous author raises a distinct possibility that robots will replace human beings in many jobs as they are more efficient and cheaper. On a wider scale he raises the question of what do we need so many humans for?
In terms of entering a market, companies need to consider cultural, political and infrastructure challenges. Automation has helped companies to be more productive and stay profitable. The promise of increased productivity, safety and efficiency are important for the economy and businesses. Taxi unions, truck driver associations and labour unions, might vehemently oppose the introduction of self- driving taxis or trucks knowing full well it will eventually replace their jobs.
As mentioned in my previous blog, necessary infrastructure such as smart motorway, better roads and smart signals to exist for a fully autonomous car apart from necessary regulations need. So companies will need to work with governments to bring this technology to the markets.
Countries which are prepared, can focus investments to tackle these challenges and effectively leverage them for greater good. Working with companies they can alleviate the fear of uncertainties which can bring about panic among its citizens.
Even the revenue for the government might go down as self-driving cars become prominent as there will not be any need for driving license. Other revenues from speeding tickets and parking fines might be eliminated.
However, countries can leverage these technological advances by finding niches which can grow the economy. India for example leveraged the rise of Information and communications technology and it is a major contributor to its economy.
Finally, here is a link to an interesting video which talks about the various implications of automation — Humans need not apply.
