The impact of automation and AI on the workplace.

Nur Younis
6 min readOct 9, 2021

Artificial Intelligence (AI) and automation have reshaped the nature of workplaces and hereby our economies and societies in significant ways over the last decade. Despite the ongoing debates and advancements in the field, it is clear that the impact of both automation and AI on jobs will be profound.

Artificial Intelligence is the ability that humans grant to computers to carry out tasks that are normally performed by the former. In short, AI simulates — and not replicates — human intelligence in machines with the goal of making them learn, reason, and perceive as humans do. On the other hand, automation is the process that makes certain systems or processes operate automatically, without human intervention.

Overall, these two fields have already added great value to our workplaces, from the hiring process and the elimination of repetitive administrative tasks, to team communication and innovation.

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Thus, while it is true that there exist different moral dimensions connected to the Information Age, to a large extent, the claim that automation and AI will bring greater costs than benefits to our societies is invalid. The following paragraphs will focus on highlighting both the benefits and costs that these technologies will bring. The latter, however, will be connected to the five moral dimensions and the ethical issues of these technological trends. Last but not least, we will conclude with suggestions on how certain costs could be mitigated.

Automation and artificial intelligence add great value to our societies via economic growth given their ability to positively impact the workplace. Machines have already proven to be able to not only perform more tasks than us humans but also to compliment and amplify our skills and natural abilities.

McKinsey Global Institute’s research on ‘AI, automation, and the future of work: Ten things to solve for’ stated in 2018 that ‘accelerating progress in AI and automation is creating opportunities for businesses, the economy, and society’ (Manyika and Sneader, 2018). Recent and ongoing technical advancements are constantly pushing the boundaries of the scope of machines’ intelligence.

Increased sophistication in Machine Learning (ML) algorithms are accompanied by the improvements in computing power and the amount of data available to train these AI models. This can directly contribute to improving the workplace but also to larger societal issues through its impact on labor productivity growth, which is key to global prosperity. ‘Productivity growth could potentially reach 2 percent annually over the next decade, with 60 percent of this increase from digital opportunities’ (Manyika and Sneader, 2018).

Moreover, to the surprise of some, McKinsey Global Institute’s research shows that the labour demand will grow, and not decline. Although hard to believe, this has already taken place before in our society. During the 1970s and 1980s, the personal computer was introduced to humanity. This created millions of jobs worldwide and allowed us to reap the benefits of its implementation until today.

Automating the workplace comes with great benefits but will also create a significant decline in certain job positions. Oxford Economics predicted that by 2030, up to 20 million manufacturing jobs will be lost to robots at a global scale. Hence, employees’ concern and generalized reluctance to moving forward with automation comes with no surprise.

However, this does not mean that implementing artificial intelligence will leave millions of citizens without the opportunity to work. As we experienced at the end of the twentieth century, these positions will be reshaped, and new jobs will emerge. The World Economic Forum showed that while automation will displace 75 million jobs, it will generate 133 million ones by 2022. In order to exemplify the latter statement, Amazon’s business case can be used. At Amazon — an American multinational company that develops solutions for e-commerce, digital streaming, cloud-computing, and AI — those employees whose previous obligations were to stack shelves, for example, have been trained and re-positioned themselves into robot operators. The ‘robots make Wearhouse work less tedious and physically taxing, while also enabling the kinds of efficiency gains that let a customer order dental floss after breakfast and receive it before dinner’ (Wingfield, 2017).

The implementation of technology in the workplace leads to a vast range of challenges in different dimensions. From an ethical perspective, the quick development of technological tools resulted in a lack of legislation such as data privacy, information rights and obligations, system quality, accountability and control, since indeed AI and information technologies result in accountability problems in terms of actions taken, their actor and their consequences, in addition to potential system failure. What rights the people have in regard to their data collection and transparency about the processes remain as a challenge despite the rising efforts like the data protection act 2018 in the UK or the GDPR (General Data Protection Regulation). On the other hand, the increasing use of technology strengthens strategic challenges, business sectors are aiming to reposition, and companies are striving to transition into service suppliers leading to a major change in job demand and the job market.

Furthermore, the use of information technology induces profiling, which is combining data and creating files for individuals. This process engenders in a large-scale population surveillance that can have multiple negative impacts on society in general and workers in particular.

In conclusion, this essay has discussed the main costs and benefits linked to the implementation of automation and artificial intelligence in the workplace. It has been argued that, although jobs will be replaced by new ones and will require a heavy investment in reskilling and upskilling programs, the benefits that accompany these advancements are greater than its disadvantages. In terms of the ability to reallocate the employees in the workforce, examples such as Amazon’s have been showcased. This comes with additional benefits given that these employees were already part of the company, which makes them aware of the team dynamics and internal processes. This in turn provides a smoother onboarding process and simplifies the efforts for companies. There will not only be work for everyone in the workplace of tomorrow but also a more exciting and less alienated one.

Training and reskilling are key subjects that need to be implemented within businesses in a joint effort with public administrations in order to facilitate enough capital and resources to invest as much as it is needed in human capital. We have a challenging transition phase ahead, but the end result will provide us with a much richer professional life.

Bibliography and reference list

Manyika, J., & Sneader, K. (2018, June 2). AI, automation, and the future of work: Ten things to solve for. Retrieved from https://www.mckinsey.com/featured-insights/future-of-work/ai-automation-and-the-future-of-work-ten-things-to-solve-for#

Wingfield, N. (2017, September 10). As Amazon Pushes Forward With Robots, Workers Find New Roles. The New York Times. https://www.nytimes.com/2017/09/10/technology/amazon-robots-workers.html

The Future of Jobs Report. (2018). World Economic Forum. https://www.weforum.org/reports/the-future-of-jobs-report-2018

How Robots Change the World — What automation really means for jobs, productivity and regions. (2021). Oxford Economics. https://www.oxfordeconomics.com/recent-releases/how-robots-change-the-world

AI Will Create More Jobs Than It Eliminates. (2017, December 13). Gartner. https://www.gartner.com/en/newsroom/press-releases/2017-12-13-gartner-says-by-2020-artificial-intelligence-will-create-more-jobs-than-it-eliminates

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Nur Younis

Where curious minds interested in the intersection of finance, technology, and sustainability meet.