Effects of Unemployment in the Age of Artificial Intelligence and Automation

Effects of Unemployment in the Age of Artificial Intelligence and Automation
Name
Course
Professor’s Name
Institution
Location of Institution
Date
Effects of Unemployment in the Age of Artificial Intelligence and Automation
Recently, there have been more speculations about the future of human labor at a time when artificial intelligence (AI) and automation are taking over in many industries with the sole purpose of increasing productivity. Much of the speculation revolves around the imminent danger of technological unemployment. In many cases, experts on the issue agree that AI and automation will make some jobs obsolete, but there will also be the creation of more jobs. However, McAfee and Brynjolfsson (2016, p.140) posit that there is a need for a less rigid economy if society is to address the coming changes in the labor market, especially by first embracing AI instead of restricting it. The focus of this paper, however, is on the effects that society will experience in the event that technological unemployment becomes a reality. According to an article featured in The New York Times, dated February 2019, automation and AI will have two dire effects on society. One, it will cause some inequalities in the labor market. Second, it will increase social vices. This paper will analyze the two issues using the information from class readings and other relevant sources.
It is evident that more companies are embracing the use of AI technology. In fact, an article in The Wall Street Journal (2019) reveals that approximately 90% of major companies’ chief information officers intend to have incorporated AI technology in their companies in three years’ time. This is in line with what LaGrandeur and Hughes (2017, p.4) posit that more jobs are becoming easily replaceable by AI technology, which can explain how more companies are adopting this technology. Thus, it is imperative to address what this will do to workers. As The New York Times article reveals, there will be a division of the workforce into high-income earners and low-income earners. This will definitely promote inequality in terms of income and social status. This same sentiment is shared by Danaher (2017, p.46), who posits that technological advancement will increase income for a few people, in terms of owners’ capital, and decrease income for workers, a majority of whom will be pushed out of work by AI technology. LaGrandeur and Hughes (2017, p.5) also reveal that loss of employment due to AI technology will affect low-wage jobs. Thus, with no low-wage jobs, a high number of people, especially those without skills, will experience more poverty while those in high-income employment will acquire more wealth. In addition, The New York Times reveals that while there will be no shortage of employment opportunities, these opportunities are more in the service industry which lacks the incentive to adopt AI technology. The downside of this is that the service industry does not pay much and as such, workers will be disadvantaged in terms of income. Danaher (2017, p.46), however, gives a possible solution to the issue of income inequality by suggesting income redistribution. Such a move would require policy change and a higher level of flexib...