Nowadays there is a lot of talk about automating processes. Experts mention different topics that seem novel to implement in SMEs, such as Artificial Intelligence, Machine Learning, among others. While it has been sold as the way forward for a more productive world, studies show that productivity has only improved 0.5% in the United States in recent decades. However, job losses due to automation have been considerable.
Is this new? Not really. Every industrial revolution generates this kind of impact. During the first industrial revolution, manual work for handcrafts was replaced by spinning machines creating a transformational change in lifestyle that increased urbanization … but at the same time people became less happier than before.
But then… What should we expect in the economy from the implementation of robots, artificial intelligence, and other recent advancements? More unemployment? And if there is no employment, what is the benefit of all this technological boom? Are companies making more money? Or do they just make expensive investments to survive in the market?
Let´s leave open some possible answers:
The OECD estimates that 14% of jobs are at risk because of automation. If the labor costs in a country are very high, this can be an incentive for the entrepreneur to invest in technology. Is the entrepreneur willing to train his employees in new skills to handle this new environment? Maybe it’s time for good leaders to disrupt not only by automating but by building their teams.
On the other hand, investing in technology is a big bet, but if done in the wrong magnitude or direction, it doesn’t generate the desired productivity. It is time to see in the market consulting teams not biased to a specific supplier, but open to a social function that supports SMEs in knowing how to evaluate the cost-benefit of large investments.
How do you see this way? What obstacles and alternatives are there to this reality that we cannot escape?
Diego Forero
MBA- Manchester Business School – BSc in Business and MSc – Industrial Engineering- Universidad Nacional de Colombia. Passionate for innovation, data management and analytics. Offering his talents at the service of a community that creates and opens spaces for everyone.