Effects of Artificial Intelligence and Automation on the Workforce

This document discusses the impact of artificial intelligence and automation on the workforce. It explores how AI is influencing organizational structure and working environment. The paper also discusses the way AI is replacing humans with machines and the resulting impact on employment.

Running head: EFFECTS OF ARTIFICIAL INTELLIGENCE AND AUTOMATION ON THE
WORKFORCE
Effects of Artificial Intelligence and Automation on the Workforce
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Introduction
As discussed by Manyika et al., (2017) technological advancement especially digitization
are highly influencing the labor market. This is driving the organizations to automate their
internal functionality which is the key of ensuring speed in the business. There lies the
significance of artificial intelligence (AI) and automation which plays a critical role in
accelerating the internal functionality of the firms which is the key of strengthening the value of
business. Brynjolfsson & Mitchell (2017) observed that AI is paving the way for the firms to
transform their internal process from manual to automatic. Present paper would discuss the
impact of AI and automation on the workforce. The way, through which AI is influencing the
organizational structure and working environment will also be discussed in the paper.
Discussion
Artificial intelligence is one the major outcomes of advancement of technology which is highly
influencing the contemporary business environment. Issa, Sun & Vasarhelyi (2016) observed
that this is nothing but the capability of the superior quality of machines which are playing a
critical role for the firms to think and learn effectively. AI intends to replace the humans by
machine learning which is the key of improving organizational efficiency. It has been observed
that one of the major applications of AI is machine learning. The machine learning is entirely
based on the advanced computer program which is the key of improving the performance of an
organization by thinking and learning effectively. Kokina & Davenport (2017) commented that
such advanced computer programs holds the ability to accessing necessary data automatically
and evaluates them and align them with the organizational process.
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Florian (2015) opined that AI is nothing but the alignment of high end technology which
involves automation, robotics and machine learning. Such technologies are playing a critical role
in improving the organizational performance by ensuring smooth functionality. This is the
human intelligence process which incorporates the machine learning which is the key of
improving organizational productivity. AI, in its simplest form is defined as the process of
developing intelligent machines which is very much needed in order to carry out critical business
related activities. Makridakis (2017) commented that AI technology is developing in a rapid
manner and helping the companies to automate their business process by integrating high quality
of machine learning. Modern information technologies and the prompt advancement of machines
powered by artificial intelligence are strongly influencing the contemporary business
environment by simplifying the everyday tasks.
AI is significantly influencing the organizational structure by simplifying the way of
working. It is creating new structures in the company. Frank et al., (2019) put stress on the fact
that in order to improve the economic performance, the organizations are highly relying on the
intelligent software or machines in order to promote speed in business. In the era of high end
technology, the companies are focusing on aligning additional IT department with that of their
traditional departments such as such as as sales, supply chain, production, research and
development (R&D) and finance. However, Nabi (2019) counter argued by saying that running
IT department requires competent staffs which are driving the firms to outsource their business
process which us extremely costly and will hamper the ability of the companies to run their
business in a cost effective manner. As per the perception of Webster & Ivanov (2019) AI offers
the companies with the ability to maintain the communication between the computers of the
customer and its suppliers which is replacing the pyramid in an organization.
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AI is playing a critical role in introducing the virtual working group who work
independently by using high end technology. Raj & Seamans (2019) observed that virtual
working groups are playing a critical role for the firms to align the people with that of the best
expertise which is the key of attaining long term success from business. Still, Brynjolfsson &
Mitchell (2017) argued by saying that the members of the virtual working group have no
personal contact with that of their coworkers. This ultimately leads to the isolation of the staffs.
The working environment of the organizations is also influenced by artificial intelligence
systems. The robots, powered by AI is highly impacting the working structure and process of the
firms and leading to automation of work. However, Issa, H, Sun & Vasarhelyi (2016) stressed in
the fact that maintaining occupational safety is one of the major issues of robotics. It is true,
robotics are creating automation of the business process in an origination. Still, it is leading the
human resources under great danger.
The robots are working alone with that of the human clients. As opined by Florian (2015)
actroids are humanoid robots which are working like humans for the sake of mitigating diverse
business needs. In the context of hotel industry, the robots are performing some preliminary
activities such as carrying the luggage and cleaning the hotel rooms. The robots are working
collaboratively with that of the humans in order to promote speed in the internal functionality of
the firms. For instance, in the case of CCTV cameras the humans are highly required for the sake
of solving any kind of issues. It has been observed that robots are highly intended towards
assisting the humans by lowering the issues related to occupational safety. In addition to that, the
robots are also abridging the work of the employees. Nabi (2019) showed that assistive robots
are playing a critical role in relieving the human beings from the strenuous tasks and thereby
paving the way for them to foster interpersonal communication. Thus, it can be said that AI and
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automation are highly desirable among the staff as these are helping them to be protected from
that of the strenuous movements which in turn is reducing the illness-related absences and
thereby protect their physical health (Raj & Seamans, 2019).
Technological development especially digitization is repositioning the way of conducting
business in the contemporary times. On the other hand, Kokina & Davenport (2017) commended
by saying that it is threating the employment by replacing the humans into machines. This is
becoming major problem for the firms to address the critical business related issues. The
machines don’t have any emotions or moral values and cannot make appropriate judgment and
can nor encounter any kind of unfamiliar situation. AI is leading the people to be dependent
totally on the machines which is lagging their creative power and hampering their degree of
productivity. Thus, replacement of humans through machines is increasing the rate of
unemployment. At the same time, Manyika et al., (2017) shaded light on the fact that usage of AI
is resulting in lack of personal connections among the staffs which in turn is hampering the
organizational communication.
Conclusion
Based on the discussion, it can be concluded by saying that technological change is
considered as one of the key drivers of prompt economic growth. AI is basically the science and
engineering in order to make intelligent machines. However AI is being criticized for increasing
the rate of unemployment by replacing the humans by machines. Still, this is the way of making
robots, controlled by the computer which is the key of promoting the internal functionality of a
firm.
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References
Brynjolfsson, E., & Mitchell, T. (2017). What can machine learning do? Workforce
implications. Science, 358(6370), 1530-1534.
Florian, D. M. (2015). The effect of automation on the human behavior. In Proceedings of the
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Frank, M. R., Autor, D., Bessen, J. E., Brynjolfsson, E., Cebrian, M., Deming, D. J., ... & Wang,
D. (2019). Toward understanding the impact of artificial intelligence on
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Issa, H., Sun, T., & Vasarhelyi, M. A. (2016). Research ideas for artificial intelligence in
auditing: The formalization of audit and workforce supplementation. Journal of
Emerging Technologies in Accounting, 13(2), 1-20.
Kokina, J., & Davenport, T. H. (2017). The emergence of artificial intelligence: How automation
is changing auditing. Journal of Emerging Technologies in Accounting, 14(1), 115-122.
Makridakis, S. (2017). The forthcoming Artificial Intelligence (AI) revolution: Its impact on
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Manyika, J., Lund, S., Chui, M., Bughin, J., Woetzel, J., Batra, P., Ko, R. and Sanghvi, S., 2017.
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