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Artificial intelligence (AI) is what all those 1980s killer robot movies were trying to warn us about…right? For financial institutions (FIs), AI has many beneficial aspects. With the right platform and proper optimization, AI can enhance the experience for both the institution and the customer. From credit risk monitoring to customer behavior predictions and everything in between, AI solutions can provide services that were lacking in the pre-pandemic world. Thanks to the accelerated digitization sparked by COVID-19, those killer robots may be on our side, at least when it comes to assessing credit portfolios.
Editor's note: This viewpoint article was co-written by Blake Moret, chairman and CEO of Rockwell Automation and Carolyn Lee, executive director of The Manufacturing Institute. Barrels of e-ink have been spilled in recent months on the radical realignment of the workplace during COVID-19. The commentators' usually narrow focus on the work-from-home revolution, however, ignores the equally rapid shifts in onsite employment, work practices and technologies that will continue to transform how Americans do their jobs every day. The pandemic necessitated immediate, iterative adjustments to business operations, demanding agility and resilience from companies and workers. But change is intensifying across the U.S. economy, especially in modern manufacturing.
In this episode of the McKinsey Podcast, Diane Brady speaks with partners Michael Chui and Enno de Boer about the fifth generation of wireless technologies and how artificial intelligence, the Internet of Things, and other advanced technologies are reshaping businesses. An edited transcript of their conversation follows. Today we're talking about the fuel that is powering the Fourth Industrial Revolution. It is, of course, the much anticipated 5G, or fifth-generation wireless technology. What it delivers is an astonishing level of connectivity that will transform every industry. Today we're focusing on the impact it's already having on manufacturing, from the supply chain to how we run our factories, and, more importantly, that there are many times where we don't actually need 5G to get this done. Joining me today are two McKinsey leaders who spend a lot of time on the front lines of transformative technologies. Michael Chui is a San Francisco–based partner at the McKinsey Global Institute, where he leads research on the impact of technology on business and society. Enno de Boer is the global head of manufacturing out of New York, where he's worked with partners like the World Economic Forum on the future of production and the Fourth Industrial Revolution. Enno de Boer: It's great to be here. Diane Brady: You are both on the front lines.
South Koreans must learn how to work alongside machines if they want to thrive in a post-pandemic world where many jobs will be handled by artificial intelligence and robots, according to the country's labor minister. "Automation and AI will change South Korea faster than other countries," Minister of Employment and Labor Lee Jae-kap said in an interview Tuesday. "Not all jobs may be replaced by machines, but it's important to learn ways to work well with machines through training." While people will have to increase their adaptability to work in a fast-changing high-tech environment, policymakers will also need to play their part, Lee said. The government needs to provide support to enable workers to move from one sector of the economy to another in search of employment and find ways to increase the activity of women in the economy, he added.
THE COFFEESHOP is an engine of social mobility. Barista jobs require soft skills and little experience, making them a first port of call for young people and immigrants looking for work. So it may be worrying that robotic baristas are spreading. RC Coffee, which bills itself "Canada's first robotic café", opened in Toronto last summer. "[T]he barista-to-customer interaction is somewhat risky despite people's best efforts to maintain a safe environment," the firm says.
Zhang, Daniel, Mishra, Saurabh, Brynjolfsson, Erik, Etchemendy, John, Ganguli, Deep, Grosz, Barbara, Lyons, Terah, Manyika, James, Niebles, Juan Carlos, Sellitto, Michael, Shoham, Yoav, Clark, Jack, Perrault, Raymond
Welcome to the fourth edition of the AI Index Report. This year we significantly expanded the amount of data available in the report, worked with a broader set of external organizations to calibrate our data, and deepened our connections with the Stanford Institute for Human-Centered Artificial Intelligence (HAI). The AI Index Report tracks, collates, distills, and visualizes data related to artificial intelligence. Its mission is to provide unbiased, rigorously vetted, and globally sourced data for policymakers, researchers, executives, journalists, and the general public to develop intuitions about the complex field of AI. The report aims to be the most credible and authoritative source for data and insights about AI in the world.
California's high poverty rate, low wages and frayed public safety net require a new "social compact" between workers, business and government, according to a report by a blue-ribbon commission that highlights the state's widening inequality. In a report released Monday, the Future of Work Commission, a 21-member body appointed by Gov. Gavin Newsom in August 2019, laid out a grim picture of the challenges facing the world's fifth-largest economy, even as it acknowledged the Golden State's technology leadership, its ethnically and culturally diverse workforce and world-class universities. "Too many Californians have not fully participated in or enjoyed the benefits of the state's broader economic success and the extraordinary wealth generated here, especially workers of color who are disproportionately represented in low-wage industries," the report says. California has the highest poverty rate in the country when accounting for the cost of living, 17.2%, according to the report. Since 2012, wages in the state grew by 14% while home prices increased by 68%.
More than outright destroying jobs, automation is changing employment in ways that will weigh on workers. The big picture: Right now, we should be less worried about robots taking human jobs than people in low-skilled positions being forced to work like robots. What's happening: In a report released late last week about the post-COVID-19 labor force, McKinsey predicted 45 million U.S. workers would be displaced by automation by the end of the decade, up from 37 million projected before the pandemic. Yes, but: McKinsey notes that despite the displacements, the total number of jobs is projected to increase. The catch: McKinsey finds that while the total number of jobs will increase, "nearly all net job growth over the next decade is projected to be in high-wage occupations" -- which is not good news for workers with low job skills.
Accountants can build the kinds of skills needed to stay relevant in a rapidly automating world that's increasingly taking advantage of technologies such as robotic process automation and artificial intelligence to handle routine financial tasks, according to Institute of Management Accountants president and CEO Jeff Thomson. "It is a bit of a race where technology capability is really moving at warp speed, but it's not clear that the profession's ability to upskill and transform itself is moving at warp speed," Thomson told Accounting Today. "Therefore it's a race for relevance, creating the story, and telling the story of our profession because we want to attract technologists into our profession." He believes the accounting profession will need to do a better job of competing for students and finding ways to attract them to the profession, given its reputation for routine work that is increasingly being automated away. "We get to work with the latest technologies, but not if we don't make that part of our profession," said Thomson.
As many of us have moved to working from home and many companies have decided to keep remote working ... [ ] as a permanent option, the future of jobs looks like it will be increasingly digital but also increasingly focused on wellbeing and self-management. Human skills, not technology alone, will help us through the'double-disruption' of Covid and automation. A new report by the World Economic Forum (WEF) on the Future of Jobs has highlighted the need to build on self-management and critical thinking skills, so that we can harness an increase in automation and an impending Covid-triggered recession to usher in a new wave of jobs that take advantage of both automation and human creativity and adaptability. As the pandemic has pushed many people into working remotely and using many different technologies to work and relax, the importance of wellbeing as well as the utility of technology have come into stark focus, and created a unique foundation on which to build new jobs and a new way of working. For many years, automation technologies have been changing how we work, by taking on more of the mundane, repetitive tasks that they are designed for.