The world’s most capitalist economies are witnessing a period of rapid transition. Developments in digital technologies, inclusive of artificial intelligence (AI) and automation, are estimated by some to create the potential for a tremendous reduction in the volume of work. Others see scope of digital technologies to transform the quality of work.
Most nations already face the challenge of adequately training their labor forces to meet the current needs of employers. Across the OECD, spending on worker training and development has been declining over the last twenty years. Spending on worker transition has also continued to shrink as a percentage of GDP. While globalization may have helped increase economic growth, the wage and dislocation effects on people were not properly addressed. Most studies suggest that the scale of these issues is likely to amplify in the coming many years. It has also been found that huge scope labor force changes can affect wages; during the 19th century Industrial Revolution, wages in the United Kingdom stayed stagnant for about 50 years despite rising economic growth—a phenomenon known as “Engels’ Pause,” after the German philosopher who identified it.
In the search for measures and policies to address these difficulties, we should not seek slow integration of digital technologies. Organizations and governments should harness AI and automation to benefit with the improved productivity, performance and overall societal benefits. These innovations will make the financial benefits that will help societies manage workforce transitions. The focus should be on approaches that ensure that the workforce transitions are as smooth as possible. This is going to require more scalable solutions in a few key areas:
ENSURING STRONG GROWTH.
A robust growth isn’t the answer for all challenges posed by AI and automation, but it is essential for job growth and overall prosperity. Productivity is a critical element to economic growth.
EVOLVING LEARNING FOR A TRANSFORMED WORKPLACE.
Lawmakers working with education providers and organizations themselves could do more to improve fundamental STEM abilities through the educational systems and improved on-the-job training. An enhance emphasis on creativity, life-long learning, and critical thinking is required.
INVESTING IN HUMAN RESOURCES.
It is critical to reverse the trend of declining public investment in worker training in poorer nations. Through tax cuts and other incentives, lawmakers can urge organizations to put enough resources into human resources, including job creation, training and development, and wage growth, akin to incentives offered in the private sector to invest in human capital.
IMPROVING WORK MARKET DYNAMISM.
Today’s digital platforms can help match people with new jobs and reestablish vitality to the labor market. Evidence points out that wages rise when more people switch jobs, even within an organization. As more jobs and income earnings opportunities arise, including the gig economy, we should strive to tackle for issues like better benefits, wage variability, and worker classification.
Work processes and workspace design should adjust to a renewed era where individuals work more closely with AI. This is both a challenge and an opportunity, as far as establishing a safe and productive work environment is concerned. Organizations are evolving as well, as work becomes more synergetic and organizations try to become more agile.
If AI and automation brings a critical decrease in employment and/or depressed wages, a few ideas like universal basic income, adapted social safety nets, support for mobility, and conditional transfers could be tried. The key will be to adopt solutions that are financially viable and include the various roles that work for individuals, including providing a sense of purpose.
RETHINKING SUPPORT FOR WORKERS AFFECTED.
As work evolves at rapid paces of transition between geographic locations, sectors, and skill requirements, many individuals will require help adjusting. Many best practices to deal with a smooth transition are available, and should be embraced, while new methodologies should to be tried and tested.
EMBRACING AUTOMATION AND AI RIGHT NOW
Even as we encapsulate the usefulness of these digital technologies, we need to effectively prepare for the risks and mitigate any dangers. The use of data should consistently consider concerns, including data security, privacy, misuse, and potential issues of biases, gives that lawmakers, tech and other companies, and people should find effective ways to address.
There is work for everybody today and there will be work for everybody tomorrow, even in a future with automation. However that work will be different, requiring new skills, and far more adaptability of the workforce than we have seen. Retraining workers across all generations for the coming difficulties will be a goal. Business leaders, government, and innovators all need to cooperate to more readily organize public and private drives, including making the right incentives to invest more in human capital. The future with AI and automation will be challenging, yet a lot richer if we learn to harness the digital technologies while mitigating the negative effects.