Automation will make countries lose 1.4 million jobs by 2021. India will lose the most jobs in low skill areas but gain 14% growth in mid/high value skills whereas the US will suffer loss and create the least opportunities.
Automation has become the basic element of digitization model for businesses across the world. This element is ready to jeopardize the job culture and workforce. Low skilled jobs will be wiped off and new arena of jobs will be created with robots and artificial technology taking on multiple aspects of business cutting on cost and putting the efficiency and speed at high standards.
In the coming five years, automation is going to kick in more profits and key 1.4 million out of job, as per the latest HfS reaearch. India alone is set to lose 6,40,000 jobs by 2021. Almost half of the jobs (45%) in the US could be automated or replaced by Artificial Intelligence (AI) with the already demonstrated technology, as per McKinskey. If the technologies were able to process and understand natural language and reach the median level of human performance, an additional 13% of work activities in the US economy could be automated.
Emphasizing on the new digital model, Gartner predicts one in three jobs (33%) will be converted to software, robots and smart machines by 2025. As per HfS, even the least active scenario will put 3,00,000 jobs at risk by 2021. However, the most aggressive scenarios can bring around 22,00,00 jobs under the risk by 2021.
B2B firms will soon have a digitized business model based on Machine Learning (ML) and Mobile Robotics (MR). This new model, according to Forrester, will cut nearly 1 million US B2B salespeople; as most of the people are being satisfied with automated voices unless dealing with unique or high investment related issues. Most of the calling jobs throughout the world have shown similar trend and BPOs are going to have heavy cut down on their employees within the coming five years.
Opportunities to be created
Low-skill and low-wage activities on the front line are the ones most susceptible to automation and as per HfS, are ready to have a “phase out”. On the other hand, there will be an increase in demand for high-skilled positions involving analytics and critical thinking by 2021.
In terms of new job creation as a result of automation, based on the bases of make up of the workforces, education levels and future anticipated IT/business services work for enterprises, HfS expects India will add 160,000 (14% growth) in mid/high value skills value chain. Phillipines will generate the highest growth of 48%, the UK will create 1,31,000 new services jobs (16% growth) and the US will lag with 7% expected growth (173,000 new jobs).
As per HfS, the world will have a cut of 30% low skilled jobs but gain 8% medium- and 56% high-skilled jobs by 2021. This can vary between 57% high-skilled to 55% high-skilled jobs to be created. The expected fall is 9% which can reach a maximum of 14%, as per the research.