Automation is on the rise, with a boom in machine learning and robotics. These technologies are expected to replace 47% of American jobs over the next two decades. However, history suggests that this boom could be followed by a bust. During the 1980s, there was a similar surge in automation, with the introduction of personal computers. Yet, this was followed by a significant slowdown in productivity growth.
Economists have suggested a few reasons for this. Firstly, the benefits of automation are often overestimated. While it may increase efficiency, it can also lead to job losses, resulting in social and economic costs. Secondly, the implementation of new technology can be slow and expensive. It can take years for companies to fully integrate these systems, and they may not see the expected returns on investment.
Lastly, automation can lead to inequality. The benefits are often concentrated among the wealthy, while the costs are borne by the working class. This could result in social unrest, which could slow down the adoption of new technologies. Therefore, while automation has the potential to revolutionise industries, it is not without its challenges. Policymakers need to consider these factors when planning for the future.
Go to source article: https://hbr.org/2018/03/why-the-automation-boom-could-be-followed-by-a-bust?_hsenc=p2ANqtz-_-KKM9wpCe6liTNPEQ9lwkwRt6TRwiswCPYBWWfbyWsaNJcrzBRcKBT9TvZIC24XDfgf0-gCbRxgUXSIz1g8dsEnMX-g&_hsmi=61473940