Automation of Jobs

I decided to present my tech briefing on a book I read titled “Machine, Platform, Crowd”. It is written by Andrew McAfee and Erik Brynjolfsson. It is based on technology and the implications it has on the economy and various business industries. The book covers many topics and is hard to narrow down to a specific category.

Machines have vastly changed over the years and the implications machines have had on economics and various business industries has equally changed with them. The book discusses how machines have replaced jobs that used to be occupied by humans. These jobs include but are not limited to warehouse, retail, and even telecommunications. In areas where machines were not able to replace the needs for humans all together they have made the jobs easier on the humans that perform them. There are several examples given in the book such as Amazon with the robots that can move the shelves with the product needed to be shipped to the human instead of the human needing to travel by foot or cart through out the warehouse. This has enabled Amazon to save a lot of time and money. Also, there are less chances of employee accidents.

Machines in some instances were able to replace humans all together. There is an example given in the book that refers to a local food establishment that allows the customer to have little to no human interaction while ordering and receiving food. Only employees needed are the ones there in case customers are new or have questions that can not be answered by the machine efficiently. The last point made is a big part of the book. Although machines have made life easier there are many aspects in work and life where a machine can not be as efficient as a human. The authors speak of voice recognition by computer as being a prime example of human superiority. Machines have not become efficient in task we consider basic such as seeing, hearing, feeling, and smelling. This is one of the few things the book states as being a constraint to how far machines can go in replacing humans. An example is given referring to machines not being able to slice onions due to the various shapes and sizes.

Platform is what the book uses to mainly refer to software and algorithms. The authors discuss two systems. Named respectively System One and System Two. System One is when machines are used to calculate however the human makes the final decision based on experience and some perceived biasness. System Two is when machines do the calculating and decision making based on the calculation results. In most cases research has found that System Two is more effective and accurate than System One. This implies that human biasness can often produce inaccurate results. However, the authors do give examples of how algorithms and machines cannot interpret somethings in the correct manner. An example is given using Uber and the terrorist attacks in London, England. When residents were requesting Uber to leave the area of danger the algorithms in place are set to raise the price in the area where demand is high. Many customers did not like this and in many cases, this would not be considered ethical. Now, a human is at the control with Uber for situations like this.

One of the main questions the authors address is whether we use technology to its full potential and are we limiting our selves because of the perceived tension between humans and machines concerning job replacement. There are also issues with machine learning. Many AI projects have failed due to learning algorithms not being able to learn on their own. There are too many situations that can occur in the real world to write code for them all. When a situation occurs that the machine has not been coded to understand the program becomes useless.

We as humans can do many things that we do not understand how to explain or teach. Survival instincts and other instinctual functions have not yet been able to be coded. The authors state that until machines can learn and comprehend new situations on their own, the human element will always need to be present. Platforms also have been built on other platforms. An example is the internet, which is a platform and the world wide web. The world wide web is a platform built on the internet. These digital platforms have changed many industries, such as the music industry. An example given is with Apple. Apple has been able to unbundle music and change the way the music industry packaged their product. Also, marginal cost with digital platforms is typically close to zero. Variety of products offered can be greatly increased due to the low extra cost of providing them. Streaming services have changed many people from property buyers to service or subscription buyers.

The book discusses if we still need companies due to the new powerful technology enabled crowd. Bitcoin and digital currency is an example of technology attempting to substitute companies (central banks). The DOW is also an example given by the authors. The DOW does not physically exist anywhere and is not owned by any one company. The entire crowed the funded the DOW’s creation create the rules and values of the products. The DOW is only software with no human interventions possible.

The authors conclude that concern for mankind’s fate should always be at the forefront of human technology. More and more knowledge will be accessed by software agents and derived from them. The implications and issues surrounding new technology all surrounds a similar question,” what technology will do to us?”. The authors state that although this is the question often asked this is not the right question. We should instead ask what we want to do with technology. Having more power and more choices should mean that our values are more important than ever. We have more powerful technology then ever before, both personally and in society. The authors conclude that there will always need to be a balance between human and computers because having the best and most technology doesn’t mean you will be the most successful.

Video of jobs being replaced: Job Automation

Student Questions:

What do you think will be the number one industry to be affected by automation?

Are you worried about automation affecting your career?