Automation 'likely to make low-income work redundant', but won't lead to job losses
Enthusiasm is high among business leaders, but there are concerns around privacy
Much has been written about the impact of automation on jobs, including on this very site. People around the world think that automation will make them worse off due to job losses, but experts at the Bank of England say that the impact has been overstated, especially in the UK. IT leaders have the same view, generally believing that automation will supplement, rather than replace, jobs.
A new report from the Economist Intelligence Unit (EIU) comes down on the side of the professionals. Based on a survey of more than 500 business leaders in eight countries (mostly in developed nations like the UK, Germany and Singapore), the main takeaway is that enthusiasm is high, but job losses do not necessarily result.
85 per cent of those in the survey said that automation, by taking away repetitive tasks, helps people to lead happier lives. 88 per cent said that it will ‘accelerate human achievement'. Clearly, executives are willing to pursue automation with zeal.
More than 90 per cent of respondents to the survey are already using automation in some fashion, although reluctance remains around widespread adoption. There are specific concerns around data privacy and security, for example.
However, while three-quarters of business leaders admitted that automation is likely to ‘make low-income work redundant', they also believe that it is unlikely to entirely replace those employees: nearly 80 per cent said that automation is most effective when it complements humans.
42 per cent of C-level executives said that it was important to educate and reskill the workforce in order to accommodate industry changes, and alleviate employee fears about job losses.
Emily Wasik of the EIU said, "Automation adoption has exploded. We used to think of robots as the domain of the manufacturing industry, but it's clear that automation tools are now in widespread operation in businesses across all sectors."
"While the operational benefits of automation - including increased productivity and error reduction - are well-known, the perceived undercutting of the workforce has been a persistent obstacle to adoption."
"This report shows that executives do not see automation technologies as a substitute for workers. On the contrary, the prevailing view is that automation will accelerate human achievement, increase employee happiness and reduce levels of stress."
The report was released following analysis by Oxford Economics, saying that automation could replace as many as 20 million manufacturing jobs worldwide by 2030.