Essay on the Impact of Artificial Intelligence and Automation on Work

This essay examines the transformative impact of artificial intelligence (AI) and automation on the future of work. It highlights how these technologies are reshaping businesses by generating value, personalizing services, and improving productivity. The essay discusses the benefits, such as economic growth and increased efficiency, while also addressing the challenges, including potential job displacement, the need for skilled workers, and data privacy concerns. It explores the uneven adaptation of AI across various sectors and emphasizes the importance of training and adaptability. The essay concludes that while AI and automation offer significant opportunities, businesses must address challenges to ensure equitable growth and worker preparedness. The essay references sources like McKinsey & Co. and Jason Furman to support its arguments.

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Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
The artificial intelligence and automation is not new in today's era but new technological
progress has pushed the frontiers of how capable machineries are. Nowadays. Autonomous
system have appeared in environment right from automatic vehicles to the automated check in
and out in the grocery store. Apart from this, the artificial intelligence has made large strides in
some recent years as there is huge use of the computing powers and exponential growth is seen
in the availability of data. This essay shall cover how will the automation affect future of the
work.
MAIN BODY
The new technologies and automation have shaped the working of businesses as it
generates value in many offering and the organizations in every sector use it in order to
personalize the product recommendation, fraudulent transactions, etc. On other side, AI is argued
as something which is not different from technologies rather there is fear that automation and AI
will replace the human labour in future (McKinsey and Co. 2021).
There are many benefits which are attached with automation and AI as there will be
transformative changes in economy and how work will be carried out in future. There will be
improvement in productivity due to artificial intelligence and economic growth shall be
common. The technology has made productivity growth in recent years and will continue to do
so. For instance, companies nowadays analyse their customer transaction online so that they can
detect and stop the fraud, in a similar way, social networking sites are used to check hacking of
accounts, etc. but one fear of automation is the threat on jobs of humans as automation and
artificial intelligence demands skilled workers while this possess threat on the employment of
unskilled people (Jason Furman, 2018).
Moreover, the economy will not be able to generate substantial level of employment due
to high level of technology but this will not render that vast majority will be unemployed due to
two instances, workers shall either lack skills or their ability to match successfully with good
skills and high paying jobs will be created by automation which will help in economy growth
due to high generation of disposable income. However, this will create inequality and poverty by
changes in distribution of wages.

Hence, it can be said that AI has no larger impact on macro economy of state or labour
market but will become important in coming years which will bring substantial opportunities for
people to embrace themselves fully.
But there are many challenges which will be faced by AI and automation like massive
training, difficulty in generalizing algorithms, data privacy and many others. Europe is one such
place which has leading general data protection regulations. Another challenge can be the ability
of the company to adopt to these technologies such as data availability, process readiness and
many others will make it difficult. Adaptation is uneven already in many countries and sectors
such as automotive, finance and telecommunication are leading adopters of AI (McKinsey and
Co. 2021).
CONCLUSION
It is concluded from this essay that AI, automation and robotics plays an essential role in
the working of businesses. There will be many changes along side the use of technologies in
work as it will attract skilled employees and human labour will be minimized. There will be
economic growth seen in future by adaptation of AI and automation as skilled workers will
require high wages which will increase disposable income of country. However, with advantages
there comes challenges while using AI and automation such as data privacy issues, massive
training, etc.

REFERENCES
Books and Journals
Jason Furman, 2018. "Should We Be Reassured If Automation in the Future Looks Like
Automation in the Past?," NBER Chapters, in: The Economics of Artificial Intelligence:
An Agenda, pages 317-328, National Bureau of Economic Research, Inc.
Online
McKinsey and Co. 2021 [Online] Available Through <https://www.mckinsey.com/featured-
insights/future-of-work/ai-automation-and-the-future-of-work-ten-things-to-solve-for>