The impact that groundbreaking technological advances like artificial intelligence will have on the functioning of our economies and labor markets has been a hot topic for a long time. But Jerry Kaplan’s recent bookHumans Need Not Apply: A Guide to Wealth and Work in the Age of Artificial Intelligencehas impressed upon me the true size of the socioeconomic stakes.
In the insurance industry Big Data Analytics & Predictive Analytics is proven to be as effective in detecting fraud as the large & expensive fraud detection departments. Does that mean fraud detection professionals will thrown on the scrap heap? ?
No, but they will not be investigating as many claims as insurance PaaS solutions accept bona fide claims leaving just high potential fraud claims for human investigation. That does mean that these large departments will diminish in size.
The same is true for other industries. What is not clear is the degree to which new jobs and new lifestyles will offset the organisations that suffer hollowing out of jobs. In the past governments, enterprises have had time to make structural changes, re-train adults, help social and job mobility. The frequency and speed of change is a threat unless government, education, private and public sector leaders tackle the issues.
To see more views consider Humanising an inhuman future
In the UK, for example, technology has improved productivity by about a third each generation, yet the employment rate is roughly the same now as it was in the early 19th century. “We could be talking about spinning jennies or we could be talking about cyborgs — from an economic perspective it’s kind of the same,” said Toby Nangle, asset manager at Columbia Threadneedle Investments. “I think the onus on people saying ‘this time is different’ is to make the case why it is different.”