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As AI becomes more embedded in every facet of business, Jayanth Krishnan explores how it can impact your business and what to consider in a strategy to lessen the impact.

The interaction between an economic downturn and technological innovation can produce unpleasant surprises to business. Having a template to think how technology and economy can create a double whammy is worth spending time.

Impact of AI on labor and staffing

There are three generic forms in which AI is being deployed in the industry today – Machine Learning, Natural Language Processing and Robotics. This article is not about the specifics of each generic technology, but we will cover each one in a separate blog in the coming weeks. 

AI/Data Science’s impact on labor is likely to be one of the following 3 factors

Substitution – When AI takes away human labor and replaces it with a machine/robot/data center. In other words, the machine takes out human labor, saves costs and increases productivity. An example could be replacing a human factory worker with a robot. 

Complementarity – When the technology complements the human and allows him to reach higher productivity as an individual. An example is machine learning algorithms that help traders with trading signals. The machine does not replace the trader but helps the trader to focus on non-systematic strategies. 

Additivity – When the technology helps create new jobs and roles where none existed before, we call it additive technologies. An example is Digital client support specialists; a role that did not exist even 2 years ago. These are jobs that are being created because new technologies are coming to market.

As you hear about emerging technologies, its worth classifying them as substitutes, complements or additives. The interaction between the economic forces and each of these types of technologies is actually very different. 

Key points include:

• Impact of AI on labor and staffing
• How AI and Data Science should be inducted
• The economic factors driving your business 

Access the full article, Recession and AI, on GandivConsulting.com.