Development trends indicate human labor is becoming obsolete
Leer en Español: El futuro es un monopolio tecnológico
Today’s global economic cornerstones are health, business products, financial supply, IT accounts, and construction. Among these, the construction and information technology sectors witnessed the largest overall expansion in 2017.
Surge in construction is explained as the total human population is expected to hit 11.2 billion by 2050, according to the United Nations, resulting in a higher demand for housing. Worldwide consensus states that adequate human dignity requires every citizen to have a roof over their heads, a leveraged governance effort seeks to attain this expectation.
Technology is a different story.
It been a long road since the first computer ENIAC was built back in 1946. Its development remained steady until 1965 when the uprising of transistors took us to the current state of technology where computer’s processing capacity doubles every year.
IT and economics meet as the explosive expansion of technology hits a behavioral frontier; if technology stagnates on its traditional limits, such as computers and cellphones, soon industries will be overcrowded and cause an extensive decrease in productivity due to the diminishing marginal returns of work, the economic idea that explains why the fifth burger you eat makes you less happy than the first.
Silicon Valley rose as a solution to the once narrow hardware sector. Today’s technology, better known as the Artificial Intelligence sector, is the driver of change in our economy as its modifying the dynamics of the other leading sectors on the market. Artificial Intelligence is transforming the health sector as an extended collection of data allows better, faster, and more reliable diagnostics.
The business product industry will benefit from the immersion of Artificial Intelligence as productivity of operations will rise by 38% by 2035. Autonomous manufacturing has already taken over 88% of the lost jobs in the area and its applications are on the rise thanks to companies such as Amazon and Walmart that use advanced machine learning processes; *know more about machine learning here*
The financial sector’s goal is to create wealth; its fierce fight for the edge on the market has made it prone to adapt Artificial Intelligence as it generates efficiency at lower cost. Today’s banks possess the lowest number of workers since 2012. Coalition data informs that the front office headcount has fellen from 65,000 in 2012 to 52,600 in 2017.
The automation efforts will replace money managers, traders, and analysts - jobs that Bloomberg qualified as undisputed a few years ago. Former Citigroup CEO Vikram Pandit predicted that 30% of the jobs in finance will disappear in the next 5 years.
Latin American Post | David Eduardo Rodríguez Acevedo
Copy edited by Susana Cicchetto