Introduction
The world has been changing in a big way, especially in regards to technological inventions. Artificial intelligence and automation in the United States and the world as a whole have been a topic of concern for many years, especially when it comes labor market. The segment that is causing many jitters is robotics since they threaten the human workforce. Technological inventions have simplified the work of most companies. They have helped in reducing the labor cost, which is an excellent investment to the companies. On the other hand, people are also worried that they will replace them in their jobs and that robots will be doing most human work (Wladawsky-Berger, 2017). For most business owners, they see the automation process as a way of improving their economic fortunes and becoming more efficient. As such, it is important to understand the impacts of artificial intelligence and automation on the labor force and how it has impacted the U.S. economy.
The Effect A.I. on the Changing Labor Market
With these numerous changes in the market today, it is without a doubt that the labor market will change drastically. According to a report released by the London School of Economics, technology has a great impact on both economic growth and the number of jobs available and lost per year (Gaskell, 2018). The changes that are profoundly being experienced in the labor market are the loss of jobs. It has been reported that one robot can handle a task that can be handled by six human labor, signalling a decreasing number of employment opportunities. However, researchers are optimistic that jobs will not be lost as anticipated because the technology is also creating other jobs, and there is nothing to worry about the future state of labor market. The only problem is that people risk being unemployed if more investments are channeled towards A.I. as had been projected by the year 2020 (Gaskell, 2018).
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Further, a study published in 2016 by the Analysis Group pointed out that the effects will be felt on two different ways which include direct impacts on GDP growth and indirect effects. It means that the immediate effect will develop from increased revenues and job opportunities that will be created by this A.I. manufacturing companies. The indirect effects will come from A.I manufacturing from the sales of their products.
Effects of A.I. on the Relative Earning Power of Different Economic Groups
The macroeconomic impacts of A.I. technology as per PMC will be characterized by automation of a larger percentage of human jobs depending on geographical regions by 2030. However, it was noted that the changes will vary massively depending on the geographic areas as well as industrial sectors. According to the report, it is seen that North America and Europe will be affected the most and many people will lose their jobs thus affecting their earning power. The inequality comes into play in the sense that most developed countries will be less affected when compared to developing countries. For instance those countries which rely more on manufacturing are more likely to face automation when compared to any other industry (PMC, 2018).
How to Anticipated and Modelled the Social and Economic Impact of A.I.
The impacts of A.I. technologies can be beneficial to the economy of a country as long as they modelled and invested in the right way. If given the required attention as well as the right policies, automation can be reliable and productive and at the same time provide high levels of employment. One of the best ways to keep this modelling process intact is through investing and developing A.I. for its numerous benefits. Another best way is educating and training Americans with future jobs in mind, especially the ones brought about by these technologies. This will ensure a bright future for the citizens as more changes are expected to take place.
New Opportunities Created by these Technologies
New changes come with new opportunities. As expected, the companies developing or manufacturing these A.I. technologies will be on the rise due to the high demand for the technologies, which will be impact on the economy favorably. This means that new jobs will be created in the companies since they also require labor to develop the technologies. Additionally, A.I. is expected to be quick and efficient in terms of job performance, and this will help in improving productivity, and therefore economic growth will be experienced. Through A.I., the companies and businesses can enhance consumer products and services since the ability to collect, store and analyze data is fast and reliable ( Wladawsky-Berger, 2017). A.I. will also aid in reducing the time spent on performing low-value tasks in the consumption process and at the same time, increase consumer demand.
Conclusion
In every situation and invention, people should expect advantages and disadvantages. However, the best thing is to look at the advantages and try to improve on the disadvantages side as long as it is helpful. A.I. technologies, just like any other invention, have pros and cons but as seen throughout the essay, the advantages overtake the disadvantages and therefore proving to be of great benefit. It is clear that people should not be worried regarding their jobs since new jobs are still being created daily. The future is secured, and the more the demand for these technologies, the more workforces required manufacturing and developing them. Change is a good thing, and people should embrace change and try to make the best out of it.
References
Gaskell, A. (2018). What Impact Is Robotics Having on the Labor Market ? Forbes Magazine . Retrieved on 3 December 2019, from https://www.forbes.com/sites/adigaskell/2018/04/04/what-impact-does-robotics-have-on-the-labor-market/#2673edb95d00
PWC. (2018). The macroeconomic impact of artificial intelligence. Retrieved on 3 December 2019, from https://www.pwc.co.uk/economic-services/assets/macroeconomic-impact-of-ai-technical-report-feb-18.pdf
Wladawsky-Berger, I. (2017). AI, Automation, and the U.S. Economy. MIT IDE . Retrieved on 3 December 2019, from https://medium.com/mit-initiative-on-the-digital-economy/ai-automation-and-the-u-s-economy-357057e1a502
