How AI, automation and robotics are changing everything, for better and for worse
The world of AI, automation and robotics are a mixed bag. One perspective is the angle of the investor or corporate leadership welcoming Artificial Intelligence and all it can bring to the table. On the other hand, while cutting workers is a great way to save money or improve automation, job loss will result. This will painfully impact the workforce and negatively impact countless families. Will this have a positive or negative impact on the economy as a whole?
While we are all excited about the good news brought by AI, automation and robotics, we need to dig deeper regarding how we will solve the real problems it creates.
Amazon recently made news saying they will save money and improve operations by reducing their workforce by more than half a million jobs, replacing them with AI, automation, robots, and other technology.
They put out this story, which focused on the good AI and automation will bring. That's how they see it. They had a certain position in mind.
However, they must have been surprised when the media took the opposite side of the argument.
While Amazon and investors look at this shift as good, its workers and the media obviously think the opposite. And that is the problem. The same story has two different reactions and both are valid.
So, how do companies successfully move forward in this new environment?
Every transformational technology wave struggles with good and bad
Every transformational wave has wrestled with the push-and-pull created by new technology.
Remember when the railroads gave way to trucking and the automotive industry? Or when electricity replaced candles and gas? Or when gas replaced horsepower? There are countless examples to consider over time.
The difference today with AI is that these new major shifts do not come with a move. Instead, many say this is job elimination. Sure, some workers will shift for a while. However, it looks like this massive move will be different from the past.
With regards to AI, the question is will the job market decline or just shift? We will have to wait and see. But it is best to be prepared.
AI transformation is full of both good and bad, depending on the angle
Many wonder if many jobs are lost, and there is no longer a need for the human or the workforce, how will families and, in fact, our entire economy survive?
The way I see it, the real answer is both. This is not a zero-sum game. We must recognize there is both a benefit and a cost to this kind of rapid and transformative AI innovation.
As an Industry Analyst and columnist, I am a curious type. I am often asked by the media which side I come down on.
I typically say the truth is, both. There is real value and a real threat.
I can see both saved money and improved service. I can also see the real problems that are already starting to occur. And new technology like AI is still just in its infancy.
These are the questions, the benefits and the problems that are already occurring today.
What about tomorrow? They say AI will grow more rapidly as time moves forward. My question is, we cannot stop this next change wave. So, how will we handle it going forward?
Benefits and drawbacks of AI will continue to advance going forward
In the 1990s, I gave a speech to corporate executives, investors and customers talking about the Internet. Back then, I used the term “Information Superhighway” and all the changes it would bring.
At that time, we had no idea we would be wrestling with this kind of new technology, which would both positively and negatively impact our society.
This will not impact every job. There are plenty which should continue as it. But it will impact so many others.
This is similar to what happens when two companies merge. The talk from the PR department of countless companies is only about all the good that will occur.
Afterwards, as jobs are cut, the real pain sets in. However, that pain was never discussed before the approval of the M&A activity.
Today, it is more important than ever before to think through the next steps of what we are creating today.
How do we solve the growing problem of good and bad with AI?
That's what happened in this Amazon story. Sure, new technology could save them money and make them more valuable, but it will also cause job loss, impacting the workforce.
One positively impacts the value of the company. The other creates real problems for individuals with job loss.
Here is another important question. If jobs are lost, and income stops, who will be left to spend money and buy the next iPhone, Android, computer and more.
In fact, take this a step further and ask how we will make the house payment, the car payment or put food on the table.
In other words, what will this massive change do to the economy as a whole?
New technology is bringing so much transformation, occurring so quickly that we tend to block it out as a society.
Investors, executives and workers must keep eyes on both sides
That being said, keeping our eyes closed is not the answer. That will be very costly.
When I advise corporate leadership, I stress how we need to pull the camera back and have a clear vision of the world we are rushing into.
We must develop a strategy to move forward, but we must remain in control. To welcome new technology while protecting the workforce and the larger economy.
We cannot slow AI progress because China and others will win
On the other hand, global leaders in AI like the USA and China will not slow down.
In fact, China seems to be more concerned with winning this race and dominating the world rather than on survival of the family or how fewer people working will reduce sales of companies the economy is built on.
There are so many different angles we can — and must—focus on when discussing this massive change wave sweeping the world.
As investors, and frankly, everyone must keep their eyes open for the best next steps and not cut ourselves off at the knees while we are reaching for the stars. We must focus on every step of this new journey, for the better and the worse.
Featured Image Credit: AI
Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
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