AI and Technological Unemployment

It’s all ‘doom’ and ‘gloom’ in every conversation around AI and jobs. It doesn’t need to be.

‘Technological Unemployment’, the term used to describe the loss of jobs caused by technological change, has been around for millennia. Aristotle, in 350 BC, speculated that if ‘machines’ could become sufficiently advanced, there would be no more need for human labour, in his book ‘Politics’. ‘Machines’ in 350 BC were basic combinations of pulley, wheels, screws - you get the picture.

But data doesn’t support it. Only one occupation has been completely eliminated by automation in the US in the last 80 years, that of an “elevator operator”. One might speculate there are no more bank tellers because of ATMs; bank tellers in the United States have actually ‘doubled’ since the 1970s when ATMs were introduced (300k to 600k).

Let’s look at another tech disruption, Industrial Robots. Data shows that 80% of the top 20 countries with the highest levels of robot density in manufacturing have lower unemployment than the global average of 5.8%

New technology, in fact, ‘increases’ the number of occupations, hence jobs. Majority of the jobs today did not exist 80 years ago. Improving the quality of work is perhaps the biggest purpose of technology and it has done so remarkably well over the years. For instance, operating a crane is way cooler than breaking your back lifting heavy stuff, making workplace safer. Tech behind cranes - pulleys, have been around since 350BC. Sorry, Aristotle.

It may not be all ‘rainbows’ and ‘sunshine’ but AI is certainly improving the quality of jobs and creating jobs that challenge human cognition leaving the mundane for the machines.

This may cause a temporary disruption in the job market as employers take time to adjust to the new paradigm but unfounded fear only delays progress.

The real ‘fear’ is around how will humans ‘make money’, not if they will have ‘jobs’. Human ingenuity will never stop us have jobs, they will be different and will still make money, albeit in a different way.