Sokolova.pdf

8/18/2019 Sokolova.pdf

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ECONOMIC CONSEQUENCES OFROBOTIC AUTOMATION OF

PRODUCTION PROCESSES AND

SERVICES


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From the invention of the steam engine to the Internet, technology has helpeddrive human progress. Not so long ago the idea of robots patrolling neighborhoodswas the domain of science fiction. As technology has advanced, machines areincreasingly working alongside employees, as they do at Amazon’s new warehousein Trenton, N.J., and robots have even been developed to help provide therapy for

children during long hospital stays.


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The term Robotic automation refers to the automation of industrial and clericalprocesses using robots, of various guises. Robotic automation corresponds to anemerging trend for technology to replace the functions performed by humans.


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Machines are only getting smarterand more efficient.

So much so that they're starting totake over both blue-collar andwhite-collar jobs. With robots beingmore cost-effective than hiringindividuals in the workplace overthe long term, jobs with the lowestwages were also at very high risk ofgoing to the machines. As workersare eliminated and people become

unemployed or their wages fall,consumers will have less purchasingpower to buy the products andservices produced by the economy.As a result, there will be less andless demand.


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An Oxford University surveysuggested that 47 % of theworld’s jobs will be taken byrobots in nearest future. Bank ofEngland official warned that 80

million jobs are at risk of beingtaken over by robots in the nextfew decades. As technologyimproves and its use in theworkplace expands, the demandfor high-tech workers falls. At theend of the simulation, nearly 68%of high-tech workers end up inthe service sector, earningapproximately 14% less than theydid previously.


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Jobs with the highest level ofbeing taken over by a machinein the U.K. includedadministrative, production,

and clerical tasks, withaccountants having a 95%probability of losing their jobto machines, whilehairdressers had lower risk, at33%. Mental health and

substance abuse socialworkers appear to be in theclear, with a 0.3% chance ofbeing automated, whileumpires and referees have a98.3% chance.


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But at the same time robots contribute to the increase of labourproductivity and scale of production, reduction of production costs. Arobot can carry out any type of task which is assigned to it, performingit quickly and accurately every time. Robots are far more efficient at

doing repetitive jobs.


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By taking over labour-intensive administrative tasks, robots may free employees formore high-value activities like focusing on decision-making and customer servicethat can't be automated. Robots will produce 5 times more products since they canwork around the clock, on nights and weekends. With automation of workprocesses, administrative costs are reduced immediately and no additional backoffice resources are needed, for a quick return on investment.


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In conclusion we find that despite the risk of unemployment growth industrialrobots make significant contribution to labour productivity and aggregate growthand also increase wages and total factor productivity. Robotic automation makesroutine desktop task easy, fast and error-free and improves efficiency ofproduction. It promotes optimization of resources utilization and decreasing of

costs of production.

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Sokolova.pdf