International Management
Special Issue: Robot Workers: Coexistence Is Possible
By Sam Grobart on December 13,2012
The robots are coming. Resistance is futile. From car factories to microprocessor plants to fulfillment warehouses, a single robot can now handle tasks that once took hundreds of man-hours to complete. This relentless march of automation is causing economic upheaval. As time goes on, companies will become more productive and more efficient, but the amount of human labor required will decrease and the pay will be less. The sentient worker will be reduced to a relic of a simpler age.
This is what we’ve been told, anyway. To some economists, stubbornly high unemployment rates in the U.S. and Europe are at least partly attributable to the rise of machines. “There’s no question that in some high-profile industries, technology is displacing workers of all, or almost all, kinds,” wrote Paul Krugman in the New York Times on Dec. 9, adding that “many of the jobs being displaced are high-skill and high-wage.” Massachusetts Institute of Technology professor Erik Brynjolfsson, co-author of Race Against the Machine, says: “Robots are becoming more capable and skilled, and people with the same sets of skills are not as much in demand.” According to this view, robots aren’t change agents. They’re destroyers of worlds.
Yet the robot revolution doesn’t have to cause panic. While robots can claim some technological superiority over humans, even the most sophisticated machines have limitations. Automation will inevitably displace jobs, but it’s already bringing fresh economic opportunities as well. The last two decades have shown how technology can create industries even as it turns whole cities into has-beens. The ratio of jobs created to jobs eliminated by robots and where all the newfound wealth ultimately winds up are entirely dependent on how workers, businesses, and policymakers prepare for this new era.