Understandably, the common opinion about artificial intelligence (AI) and Business Intelligence (BI) is that it will lead to an increase in unemployment – because automated machines can replace people. This is not an incorrect opinion, because AI will replace some jobs; however, it will also create jobs – in fact, the World Economic Forum estimated that a net total of 58 million jobs would be created by 2022 as a result of AI. The report also stated that 75 million jobs would be eliminated, but just about double that will be created.
The negative effects of artificial intelligence on employment
- AI and business intelligence (BI) is more efficient than manual labour, making it more cost-effective and reliable
More business means more demand for your products, and more demand for your products means more pressure on your employees or the need for more employees. However, AI and BI can take on any amount of demand and still operate just as efficiently and reliably as if you had three clients.
- Mass unemployment throughout industries
The first point is much like when machines replaced factory workers, or farm labourers replaced by trucks – except, this technology is applicable throughout industries.
- “Well, machines can’t do my job, I’m a CEO – I make complex decisions every day” – wrong.
The ‘five-second rule’ is a theory put forward, stating that in the near future, AI will be able to make informed and complex decisions within five seconds – faster than the average human being.
- Mass production becomes the norm
Unless your labour force is exponential and perfectly systematic and streamlined, it is just about impossible to mass-produce as machines do. Even if you come close to it, the amount of money you would need to pay a labour force of such enormity versus buying a machine or two is chalk and cheese.
No, this does not just apply to factory workers. It applies to accountants, strategists, finance, copywriters, graphic designers, etc..
No, moving to Australia will not save you from this one. It is a reality for the whole world.
No, the world is not doomed. No, don’t blame the younger generations just yet.
The positive effects of artificial intelligence on employment
- Humans need to develop AI
It’s a dog-eat-dog world, basically.
- Humans need to maintain AI
AI is still in its pre-pubescent years.
- A labour force is needed to oversee AI and be there as ‘back up’
Fortunately, we are not at a point yet where an entire company can be run by AI. Think of it as learning to ride your bike without training wheels; somebody needs to be close to you to catch you if you fall, because if you fall you could hurt yourself very, very badly. In fact, any kind of fall is hugely detrimental to your company.
- New industries will be formed
Uber, for example, has three million drivers worldwide. Additionally, they have 27 695 employees.
- Improvement of labour productivity
You can track KPI’s (Key Performance Indexes); you can track when people are working and when they are not, you can see all data at any time from anywhere, you can contact anybody at any time, anywhere. Basically, AI is a helicopter parent.
- Liquidity increase
A company’s ability to meet financial obligations timeously. How do you do that? Overhead cost reduction, reduce unnecessary asset, ensuring that all produce leads to profit and accounts management. Pretty much what AI and BI can help you do.
To put it simply, AI is advantageous to your company – but it cannot replace your staff, rather it should be used to streamline your processes, reduce costs and improve the reliability of your data. Right now, it is an aid, not a workforce. However, always ensure that you keep up to date with technological innovations and upskill yourself to know the in’s and out’s of it all, or educate yourself to be better than an AI offering.