Automation and the Future of Work
What are the benefits of implementing intelligent automation in work? What are the implications of automation on the future of work? Let's find out more about Automation and the Future of Work.
Automation Impact on Jobs: Around 15% of the global workforce, or about 400 million workers, could be displaced by automation by 2030.
By 2030, approximately 15% of the global workforce, translating to around 400 million workers, may face displacement due to automation. This projection stems from McKinsey's midpoint scenario, highlighting the potential variance, with the actual number of affected workers ranging from 10 million to 800 million. This wide range is contingent on the pace and scope of automation adoption, underscoring the significant impact technological advancements can have on employment and the imperative for businesses and policymakers to prepare for these shifts in the workforce.
Partial Automation: Many jobs will be changed as machines complement human labor, with tasks such as data processing and repetitive work being automated.
Partial automation is poised to become prevalent, where machines will complement human labor by automating tasks such as data processing and repetitive work. This shift is anticipated to lead to significant changes across various occupations, necessitating that workers acquire new skills and adapt to functioning alongside advanced machines. As these transformations unfold, it becomes crucial to explore resources like the insights offered on AI Automation and the Future of Work to navigate and solve for impending challenges.
Skill Shifts: Demand for technological, social, emotional, and higher cognitive skills will rise, while basic cognitive and physical skills will decline.
Automation and AI will drive significant skill shifts, with rising demand for technological, social, emotional, and higher cognitive skills, while demand for basic cognitive and physical skills is expected to decline, necessitating continuous learning and organizational changes to stay competitive. For more insights on this evolving landscape, you can explore the report on Skill Shift: Automation and the Future of the Workforce by McKinsey. Understanding these shifting demands is crucial for individuals and organizations looking to thrive in the rapidly changing job market.
Workplace Transformation: Workflows and workspaces will evolve to enable humans and machines to work together, with changes in warehouse design and workflow management.
The transformation of the workplace through automation signifies significant changes in workflows and workspaces, enabling effective collaboration between humans and machines. This includes adjustments in warehouse design to accommodate robots and ensure safe human-machine interaction, as well as the evolution of job roles to manage and troubleshoot automated systems. As intelligent machines and software become more integrated into workplaces, these changes will support human focus on assistance, troubleshooting, and complex decision-making. For more insights on this topic, you can explore the detailed article by Bardeen, which delves into the specifics of job automation and its implications for the future of work.
Automation Layer: Enterprises will implement an "automation layer" to manage repetitive tasks and integrate systems, freeing workers from low-value tasks.
Enterprises will implement an "automation layer" at the top of their application stacks, allowing robots to manage repetitive tasks, integrate systems, and free workers from low-value, "swivel-chair" work, enabling them to focus on more valuable and human-centric tasks. This shift is part of the Top Automation Trends that are transforming the way organizations operate, driving efficiency and innovation across various industries.
Related:
What is the big data phenomenon and how has it impacted business? What are the benefits of Big Data in business? Let's find out more about Big Data and Its Impact On Businesses.
Hybrid Human-Digital Workforces: By the next five years, hybrid human-digital workforces will become commonplace, with workers sharing tasks with virtual robotic assistants.
In the near future, hybrid human-digital workforces are set to become the norm, where digital workers will support human employees by automating routine tasks, enhancing decision-making, and learning from past interactions to improve processes. This will enable a more efficient and purpose-driven environment. The integration of AI into the workforce will foster hybrid teams consisting of both human and digital employees. Digital workers will take on roles such as automation of business functions, improving internal processes, and enhancing customer experiences. Meanwhile, humans will concentrate on high-purpose and creative work. For further insights into the future of digital worker technology, explore the comprehensive resource on IBM's website.
Wage Pressure: Automation may put pressure on average wages in advanced economies, exacerbating wage polarization and income inequality.
Automation is likely to put pressure on average wages in advanced economies, leading to wage polarization and income inequality as it displaces middle-wage jobs and shifts the occupational mix. With high-wage jobs growing, many new jobs are emerging in lower-wage sectors. The insights shared on the Future of Work emphasize the importance of addressing these challenges to ensure a balanced economic landscape.
New Job Creation: While some jobs will decline, new jobs will be created, especially in high-skill areas such as tech and healthcare.
Automation profoundly impacts the job market by increasing efficiency, reducing costs, and streamlining processes, which leads to the emergence of new roles in various sectors. In high-skill areas like tech and healthcare, we are witnessing the creation of positions such as robotic technicians, software developers, and AI trainers. One example of this transformation is in Tech and Healthcare, where automation not only creates new roles but also elevates existing ones by freeing professionals from repetitive tasks and allowing them to focus on more complex, empathetic tasks. Furthermore, healthcare automation technology is introducing roles like chatbot developers and professionals who interpret data from AI-powered tools. Overall, the shift towards automation involves reskilling existing workers enabling them to operate and manage new technologies effectively.
Unbundling and Rebundling Work: Companies will alter work allocation to make effective use of different qualification levels, creating new middle-skill jobs.
Companies are significantly transforming work allocation methods through the strategic process of unbundling and rebundling tasks. This innovative approach enables organizations to effectively utilize various qualification levels within their workforce, ultimately cultivating the emergence of new middle-skill, "new-collar" jobs. By reallocating tasks from high-skill workers to lower-skill employees, businesses can enhance overall efficiency and adapt to the evolving skill demands prompted by advancements in automation and AI. For more insight on this transformative approach, visit the detailed analysis provided by McKinsey.
Gig Economy Growth: More work will be done by freelancers and temporary workers, boosting the gig or sharing economy.
The gig economy is poised for remarkable growth, fueled by technological advancements and evolving workforce preferences. As the concept matures, predictions suggest that it will continue to evolve, making various industries and job types more accessible through digital platforms. This growth is expected to be driven in part by Gen Z and younger millennials, who have a growing preference for work flexibility, allowing for dynamic working styles and the opportunity to secure multiple income streams. According to a report by Mastercard, the global gig economy's disbursement volumes are projected to reach new heights, indicating a significant increase in freelancers due to enhanced internet penetration and the necessity for flexible work arrangements. With these trends shaping the landscape, resources like Park University Blog offer insights into how the gig economy will influence the future of work and business, signaling an era where adaptability and digital access become key drivers of economic growth.
Related:
What are the social implications of mobile technology? What are the advantages of using mobile technology in your business? Let's find out more about Mobile Technology and Its Implications.
