All Financial Wisdom
This is how the bots won the battle of employment for humans
Every day we are in contact with bots that help to simplify our life. However, in the labor market we have been displaced, and the situation worsens with the advancement of technology.
Humans: We have bad news. In the war for employment, the bots have achieved victory. We keep thinking that this situation would come in the future, but the loss of jobs is already here and will only get worse.
In 2014, experts like US Microsoft bot developer Toxtli explains, half a million people lost their jobs because of automation. By 2015, the figure will reach 140 million, as at this moment, 45 percent of jobs have characteristics that make them replaced by technology.
In order to understand why bots and the automation process will remove millions of jobs, it is important to explain what an RPA is (Robotic Process Automation).
The Institute for Robotic Process Automation defines RPA as “the technology that allows you to configure a software or a ‘robot’ to control existing applications so that you can capture, process information and communicate with other systems.”
In this sense, the researcher at West Virginia University explains that bots are lines of code that reduce human intervention in well defined functions and tasks.
Think about it. We live with bots every day. Tasks that are related to an online payment or asking Siri, in the case of the iPhone, to make a call when ordering food through an app. Yep, all bots.
Jobs that were replaced
In the 1950s, the rise of the washing machines caused the laundresses to be replaced.
-Although in some places you can still see people charging for parking, this job was moved by the automated teller machines.
-With the advent of e-mail, the postman job has been detrimental over the years. As of 2008, e-mails replaced almost all postal service workers says Toxtli on his blog.
-Thousands of tellers in bank branches around the world have lost their jobs because of ATMs with deposit options.
-Self checkout lanes in supermarkets, CVS, Walgreens, and countless other retail outlets.
-The internet played a key role in the extinction of card vendors, as netizens can buy air time in an interconnected system of recharges.
Robo advisors and the rise of numerous fintech apps that automate the underwriting process.
Human vs. Bots
“Hiring” a bot costs 40 percent less than a flesh-and-blood worker, Toxtli says. The hiring of a human amounts to 80,000 dollars a year, while a bot only 15,000 and bots don’t get sick or ask for rest.
Toxtli says that for each bot that is ‘contracted’, three people lose their jobs, although this varies in each industry. Bottom line, when companies automate, the savings are enormous, and not only that, the processes are more efficient.
A decade ago, bots began to intrude into our lives. Who does not remember Clippy? The famous clip-art Office Assistant.
Then they evolved, began to make processes more complex and to understand the most structured language. At present, bots already have artificial intelligence and, now, yes, they can already simulate human actions and think like them.
Social media manager: I’m sorry, I know it’s a profession that was born recently, but it’s going to die in a short time, and bots are already doing the same thing as you.
Paralegal lawyers: They are those who analyze legal issues, investigate and evaluate facts of a particular case and can also prepare defense pleadings. The process of “discovery” for example, can be automated by AI that can scan millions of documents in mere hours.
Traders: Yep They are those people who buy and sell financial instruments in the stock markets, such as stocks, bonds, commodities, derivatives, among others. In this regard, the expert says that traders are in their homes assisted by a bot. As mentioned before, a robo advisor is actually much more efficient and in some cases, doesnt charge commissions.
Doctors: Toxtli says that a doctor “can diagnose you based on what he knows,” however, “a bot will give you a precise diagnosis.” In the United States, every year 12 million patients are affected by a bad diagnosis.
Drivers: With the arrival of autonomous cars, more and more humans will be dispensable to operate a car.
Scientists: Contrary to what one would think, bots can understand the laws of physics and create new ones in a matter of hours. The next Nobel Prize might actually be given to….a computer.