Why Tech Companies Are the Next Scapegoats

And what they can do to change it

In a world that is becoming increasingly reliant on technology, it is easy to see why figures like Alex Karp, CEO of Palantir, are worried of “The [Silicon] Valley…marching off a political cliff”[1]. As the March 2017, Financial Times article explains, there are various reasons why Silicon Valley companies are vulnerable. Among the reasons listed: being mostly on the wrong side of the 2016 presidential election, being tangled up in issues of security and privacy, but most importantly the risk of becoming “convenient scapegoats”[2].

New technologies have already been taking away jobs, and with the advent of Artificial Intelligence, this trend is likely to not only continue but increase. A 2013 study in Oxford, concluded that 47% of jobs in the US will be replaced by technology in the next two decades[3]. The concept of “Uberisation” is occurring daily, as traditional jobs are being replaced by new technologies. As Financial Times points out, so far Trump has blamed trade for worker’s woes, but the “digitisations being unleashed by Silicon Valley”[4] is another big culprit. As a result, Silicon Valley is vulnerable to political backlash.

What must tech business do then to remain relevant? Many tech companies have recently been looking at Universal Basic Income (UBI) as a temporary fix to the problem[5]. UBI is based around the idea of offering a “baseline pay check for everyone, regardless of job status”[6]. Several pilot programs are being tested across the world to try to understand if UBI would mitigate the problems being posed by automation and AI. Mark Zuckerberg, the founder of Facebook, has even made a case for UBI, claiming that such an initiative would be a catalyst for entrepreneurship[7]. It must be noted that UBI is hardly new, it is a concept that has emerged at the end of every revolutionary wave. However, UBI as concept does present various issues. Sceptics argue that it “rewards laziness”, “violates the core tenant of capitalism”, and would prove to be very expensive to implement[8]. For now, UBI appears to have several limitations to its implementation.

Perhaps a new mind-set on technology is required- a rebranding if you will. Where the people who have lost out to technology, can see the advantages of technology, and be convinced to embrace what it has to offer. Take the example of Amazon, though it has replaced traditional jobs, it has the potential to be an enabler of new and more creative ones. It is already helping small businesses and start-ups evolve by using Amazon as a platform to sell their products not only nationally but also worldwide. With a new mind-set, Amazon can go from being the hindrance to prosperity, to the enabler of dreams. They would help update and make small businesses relevant in a technological world. It is therefore a matter of changing perspectives on what a job means and encompasses in the technological age.

What is clear is that one of the skills that people must strive for the most is creativity. The world economic forum has even placed creativity as one of the top 10 skills we must have by 2020[9]. Though there are many skills that robots will be able to replicate, creativity is one that is yet to be matched. Even though technology will change, and has changed what a job means- humans will continue innovating and creating.

Evolution has always been about compromise, though it brings new and important innovations, it also creates unexpected problems. Technology has made human life more efficient, and simple, but in doing so it is competing for the jobs that provide a large sector of society their livelihoods. Tech Giants must therefore look for solutions before the political trends turn against them.

[1] Gillian Tett, “Political risk stalks booming Silicon Valley,” Financial Times, <https://www.ft.com/content/2690a2d8-148f-11e7-80f4-13e067d5072c?mhq5j=e2>,March 31st, 2017.

[2] Gillian Tett, “Political Risk”.

[3] Clay Dillow & Brooks Rainwater, “Why Free Money For Everyone Is Silicon Valley’s Next Big Idea,” Fortune, <http://fortune.com/2017/06/29/universal-basic-income-free-money-silicon-valley/>, June 29, 2017.

[4] Gillian Tett, “Political Risk”.

[5] Dillow & Rainwater, “Silicon Valley’s Next Big Idea”.

[6] Kaitlyn Wang, “Why Mark Zuckerberg wants to give you free cash, no questions asked”, Inc., <https://www.inc.com/kaitlyn-wang/mark-zuckerberg-elon-musk-universal-basic-income.html> , June 19, 2017.

[7] Dillow & Rainwater, “Silicon Valley’s Next Big Idea”.

[8] Ibid.

[9] Alex Gray, “The 10 skills you need to thrive in the Fourth Industrial Revolution,” World Economic Forum, <https://www.weforum.org/agenda/2016/01/the-10-skills-you-need-to-thrive-in-the-fourth-industrial-revolution/> , January 19, 2016.