What is the future of work?
Technologies like automation, robotics, and artificial intelligence are shaping how we work, where we work, and the skills we need to work.
It is a very interesting time in our history and our economy in the world around the future of work. This topic almost always comes up in every conversation students, workers, CEOs, and policymakers. The parts of the conversations are always about AI and Automation and how it will impact the jobs, how the models of work and work structure are changing which involves the boom of gig economy, and finally whether the technology will leave people at a better place in terms of earning enough income. The big question therefore is, how will the workplace actually change?
The reason why the conversations have accelerated in the space so much is because we have made more progress in AI, Robotics, and Autonomous Systems in last 7 to 10 years that we have seen in the last 50 years. What adds to that is the techniques like machine learning, where machines are doing the tasks by learning, which they weren’t scripted to do, they are discovering things themselves. When machines become better at pattern matching than human beings, that’s the time people start to worry about what would be left for humans to do, if the advancements in the direction keep happening.
When you look at the benefits side, there are all kinds of performance improvements from reducing error rates, being able to do predictions better, and being able to discover novel, new solutions or insights. When you look at the categories where these technologies have a lot of impact on, you come up with activities that involve data collection, data processing and activities that include doing physical work in highly structured and predictable environments.
According to an interview with James Manyika, who is the chairman and director of the McKinsey Global Institute and a senior partner based in McKinsey’s San Francisco office, “The question of the impact on jobs and work is a much, much more nuanced and complicated one. And keep in mind, by the way, that while we talk about the impact of these technologies on work, it’s only one thing to look at — the questions of technical feasibility.
In other words, What’s now technically possible to automate? That’s an interesting question, but that’s just the first of four or five questions. The other questions include, What’s it going to cost to develop and deploy those technologies? How does that play into labor-market dynamics in terms of the relative cost of having people do that? What is the availability of people who can do that task instead of a machine? What is the quality needed? What are the skills associated with the labor force?
These labor-market dynamics are another important consideration, as well as other ultimate questions about regulation and social acceptability, and so forth. The question of what the rate of adoption will be, and the extent of adoption, depends on many more factors beyond just technical feasibility.”
Here is an exhibit published by McKinsey and Company on how talent across the globe is underutilised and how the world would benefit if every country matched the progress towards gender parity of its fastest improving neighbour, global GDP could increase by up to $12 trillion in 2025.
We are yet to reach the full potential of digitization across the global economy. Making sure that digital gains are accessible to all could provide significant value. And though other challenges, too, remain, they could be addressed by exploring several solution spaces i.e.
- Evolve education systems and learning for a changed workplace.
- Determine how the private sector can drive training.
- Create incentives for private-sector investment to treat human capital like other capital.
- Explore public-private partnerships to stimulate investment in enabling infrastructure.
- Rethink incomes.
- Rethink transition support and safety nets for workers affected.
- Embrace technology-enabled solutions.
- Focus on job creation.
- Innovate how humans work alongside machines.
- Capture the productivity benefits of technology.
Automation, digital platforms, and other innovations are changing the fundamental nature of work. Understanding these shifts can help policy makers, business leaders, and workers move forward.
Note: The above blog is based on following articles published by McKinsey and Company. For detailed information on the above mentioned blog, kindly visit the following links:
