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#435674 MIT Future of Work Report: We ...
Robots aren’t going to take everyone’s jobs, but technology has already reshaped the world of work in ways that are creating clear winners and losers. And it will continue to do so without intervention, says the first report of MIT’s Task Force on the Work of the Future.
The supergroup of MIT academics was set up by MIT President Rafael Reif in early 2018 to investigate how emerging technologies will impact employment and devise strategies to steer developments in a positive direction. And the headline finding from their first publication is that it’s not the quantity of jobs we should be worried about, but the quality.
Widespread press reports of a looming “employment apocalypse” brought on by AI and automation are probably wide of the mark, according to the authors. Shrinking workforces as developed countries age and outstanding limitations in what machines can do mean we’re unlikely to have a shortage of jobs.
But while unemployment is historically low, recent decades have seen a polarization of the workforce as the number of both high- and low-skilled jobs have grown at the expense of the middle-skilled ones, driving growing income inequality and depriving the non-college-educated of viable careers.
This is at least partly attributable to the growth of digital technology and automation, the report notes, which are rendering obsolete many middle-skilled jobs based around routine work like assembly lines and administrative support.
That leaves workers to either pursue high-skilled jobs that require deep knowledge and creativity, or settle for low-paid jobs that rely on skills—like manual dexterity or interpersonal communication—that are still beyond machines, but generic to most humans and therefore not valued by employers. And the growth of emerging technology like AI and robotics is only likely to exacerbate the problem.
This isn’t the first report to note this trend. The World Bank’s 2016 World Development Report noted how technology is causing a “hollowing out” of labor markets. But the MIT report goes further in saying that the cause isn’t simply technology, but the institutions and policies we’ve built around it.
The motivation for introducing new technology is broadly assumed to be to increase productivity, but the authors note a rarely-acknowledged fact: “Not all innovations that raise productivity displace workers, and not all innovations that displace workers substantially raise productivity.”
Examples of the former include computer-aided design software that makes engineers and architects more productive, while examples of the latter include self-service checkouts and automated customer support that replace human workers, often at the expense of a worse customer experience.
While the report notes that companies have increasingly adopted the language of technology augmenting labor, in reality this has only really benefited high-skilled workers. For lower-skilled jobs the motivation is primarily labor cost savings, which highlights the other major force shaping technology’s impact on employment: shareholder capitalism.
The authors note that up until the 1980s, increasing productivity resulted in wage growth across the economic spectrum, but since then average wage growth has failed to keep pace and gains have dramatically skewed towards the top earners.
The report shies away from directly linking this trend to the birth of Reaganomics (something others have been happy to do), but it notes that American veneration of the shareholder as the primary stakeholder in a business and tax policies that incentivize investment in capital rather than labor have exacerbated the negative impacts technology can have on employment.
That means the current focus on re-skilling workers to thrive in the new economy is a necessary, but not sufficient, solution to the disruptive impact technology is having on work, the authors say.
Alongside significant investment in education, fiscal policies need to be re-balanced away from subsidizing investment in physical capital and towards boosting investment in human capital, the authors write, and workers need to have a greater say in corporate decision-making.
The authors point to other developed economies where productivity growth, income growth, and equality haven’t become so disconnected thanks to investments in worker skills, social safety nets, and incentives to invest in human capital. Whether such a radical reshaping of US economic policy is achievable in today’s political climate remains to be seen, but the authors conclude with a call to arms.
“The failure of the US labor market to deliver broadly shared prosperity despite rising productivity is not an inevitable byproduct of current technologies or free markets,” they write. “We can and should do better.”
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#435186 What’s Behind the International Rush ...
There’s no better way of ensuring you win a race than by setting the rules yourself. That may be behind the recent rush by countries, international organizations, and companies to put forward their visions for how the AI race should be governed.
China became the latest to release a set of “ethical standards” for the development of AI last month, which might raise eyebrows given the country’s well-documented AI-powered state surveillance program and suspect approaches to privacy and human rights.
But given the recent flurry of AI guidelines, it may well have been motivated by a desire not to be left out of the conversation. The previous week the OECD, backed by the US, released its own “guiding principles” for the industry, and in April the EU released “ethical guidelines.”
The language of most of these documents is fairly abstract and noticeably similar, with broad appeals to ideals like accountability, responsibility, and transparency. The OECD’s guidelines are the lightest on detail, while the EU’s offer some more concrete suggestions such as ensuring humans always know if they’re interacting with AI and making algorithms auditable. China’s standards have an interesting focus on promoting openness and collaboration as well as expressly acknowledging AIs potential to disrupt employment.
Overall, though, one might be surprised that there aren’t more disagreements between three blocs with very divergent attitudes to technology, regulation, and economics. Most likely these are just the opening salvos in what will prove to be a long-running debate, and the devil will ultimately be in the details.
The EU seems to have stolen a march on the other two blocs, being first to publish its guidelines and having already implemented the world’s most comprehensive regulation of data—the bedrock of modern AI—with last year’s GDPR. But its lack of industry heavyweights is going to make it hard to hold onto that lead.
One organization that seems to be trying to take on the role of impartial adjudicator is the World Economic Forum, which recently hosted an event designed to find common ground between various stakeholders from across the world. What will come of the effort remains to be seen, but China’s release of guidelines broadly similar to those of its Western counterparts is a promising sign.
Perhaps most telling, though, is the ubiquitous presence of industry leaders in both advisory and leadership positions. China’s guidelines are backed by “an AI industrial league” including Baidu, Alibaba, and Tencent, and the co-chairs of the WEF’s AI Council are Microsoft President Brad Smith and prominent Chinese AI investor Kai-Fu Lee.
Shortly after the EU released its proposals one of the authors, philosopher Thomas Metzinger, said the process had been compromised by the influence of the tech industry, leading to the removal of “red lines” opposing the development of autonomous lethal weapons or social credit score systems like China’s.
For a long time big tech argued for self-regulation, but whether they’ve had an epiphany or have simply sensed the shifting winds, they are now coming out in favor of government intervention.
Both Amazon and Facebook have called for regulation of facial recognition, and in February Google went even further, calling for the government to set down rules governing AI. Facebook chief Mark Zuckerberg has also since called for even broader regulation of the tech industry.
But considering the current concern around the anti-competitive clout of the largest technology companies, it’s worth remembering that tough rules are always easier to deal with for companies with well-developed compliance infrastructure and big legal teams. And these companies are also making sure the regulation is on their terms. Wired details Microsoft’s protracted effort to shape Washington state laws governing facial recognition technology and Google’s enormous lobbying effort.
“Industry has mobilized to shape the science, morality and laws of artificial intelligence,” Harvard law professor Yochai Benkler writes in Nature. He highlights how Amazon’s funding of a National Science Foundation (NSF) program for projects on fairness in artificial intelligence undermines the ability of academia to act as an impartial counterweight to industry.
Excluding industry from the process of setting the rules to govern AI in a fair and equitable way is clearly not practical, writes Benkler, because they are the ones with the expertise. But there also needs to be more concerted public investment in research and policymaking, and efforts to limit the influence of big companies when setting the rules that will govern AI.
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