Artificial intelligence (AI) and automation could reduce wage bargaining power and change job roles in unequal ways, but could solve some of the labor shortages, report finds bottom.
Allianz Trade No quick wins: more jobs but lower productivity Eurozone report says AI-centric disruption could permanently reduce wage bargaining power via new collective bargaining agreements and overlapping roles It became clear that there was a sexuality.
While this disruption may benefit countries with aging populations and severe labor shortages, the financial services firm that produced the report is using data from past technological advances to make AI, automation, and other innovations a reality. , suggested that robotics could have an unequal impact on the workforce.
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For example, a study by Allianz in collaboration with the Bank of Spain highlighted that past technological innovations in agriculture have not brought tangible benefits to farm workers in terms of employment and wage levels.
Therefore, workers who are well positioned to mitigate the impact of AI on wage stagnation and potential social disruption are those with strong unions and collective bargaining power. Allianz suggested that collective bargaining could play a key role in how technological advances will change the world of work in the future.
CIPD Senior Research Advisor Hayfa Mohdzaini explains that while it is important for organizations to prepare and support their workforce for change, collective bargaining for workers can also help them reap the benefits of AI. bottom.
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“If AI is expected to have a significant impact on people’s work, it is good practice to engage with employees through open discussions between management and workers or through formal collective bargaining,” he said. He added that union representation may not be too difficult for employees willing to negotiate individually.
This could be important in an area where Allianz used Refinitiv Datastream US figures to show that technological advances could pose significant automation risks in sectors such as transportation, retail and real estate. I have.
The Allianz study also builds on previous research by OpenAI and Goldman Sachs, respectively, which found that AI could affect the jobs of a quarter of workers, creating the risk of large-scale job turnover. leading the way.
As such, the skills employers need may also change. Workers with creative, social, and managerial skills are likely to escape automating their roles, but some roles with more advanced skills, such as professional services, IT, and finance, could be replaced by AI. You will be exposed to the risk that your role will change or become obsolete.
This is alongside roles traditionally at risk of automation, such as manufacturing.
Therefore, Dr. Claire Walsh, Director of Education at the Institute of Analytics, says businesses and workers must work to improve their digital skills as they face jobs in “transition.”
“Nothing that has led companies and professionals to this point in their careers and growth will survive the next 20 years. We have to embrace and embrace that,” she said.
“There was precedent for this in the 1990s when communication went digital, and today decision-making is also becoming digital. Things are changing and we can all learn how to use these technologies. ”
Therefore, to reap the productivity benefits from new technologies and AI that benefit both workers and businesses, organizations and legislators must reskill workers and ensure multi-stakeholder informed governance of technology. Allianz concludes that the focus should be on building
This means companies need to embrace the latest updates in regulation and AI law and focus on skills, Walsh said. “There are many ways AI can solve some of the problems, so stopping AI should not be the goal.
The biggest challenge facing the world today, a highly regulated environment will pave the way for great application success. ”
