Artificial intelligence and small business

Artificial intelligence promises to change small business dramatically, but are they ready for it?

How can small businesses use Artificial Intelligence? On Flying Solo, Rob Gerrish and I discuss the various ways AI is going to affect smaller enterprises.

One of the important things about the discussion is how AI is going to change a range of industries and jobs. The effect on small businesses over the next twenty years will be as great at the Personal Computer was.

The big takeaway I have for business owners is to actively think about how AI and automation are going to affect their industries, customers and individual companies.

Have a listen.

Crunching the middle classes

While the discussion around workplace automation has focused on ‘blue collar’ jobs, middle class occupations are those most likely to be affected in the near future.

This piece originally appeared in The Australian in July 2014. I’m republishing it here given the recent future of work related posts.

For the past four decades it’s been the working class that has suffered the brunt of the effects of globalisation and automation in the workforce. Now machines are taking middle class jobs, with serious implications for societies like Australia that have staked their future on white collar, knowledge-based service industries.

Yesterday, the Associated Press announced it was replacing business journalists with computer programs, following sports reporting where algorithms have delivering match reports for some years.

Some cynical media industry commentators would argue rewriting PR releases or other people’s stories — the model of many new media organisations — is something that should be done by machines. Associated Press’ management has come to the same view with business data feeds.

AP’s managing editor Lou Ferrara explained in a company blog post how the service will pull information out of company announcements and format them into standard news reports.

Ferrara wrote of the efficiencies this brings for AP: “Instead of providing 300 stories manually, we can provide up to 4,400 automatically for companies throughout the United States each quarter.”

The benefit for readers is that AP can cover more companies with fewer journalists, the question is how many people can afford to read financial journals if they no longer have jobs?

Making middle managers redundant

Many of those fields that cheered the loss of manufacturing are themselves affected by the same computer programs taking the jobs of journalists; any job, trade or profession that is based on regurgitating information already stored on a database can be processed the same way.

For lawyers, accountants, and armies of form processing public servants, computers are already threatening jobs — as with journalism, things are about to get much worse in those fields, as mining workers are finding with automated mine trucks taking high-paid jobs.

Most vulnerable of all could well be managers; when computers can automate financial reports, monitor the workplace and make many day-to-day decisions then there’s little reason for many middle management positions.

Removing information gatekeepers

To make matters worse for white collar middle managers, many of their positions are only needed in organisations built around paper based communication flows; in an age of collaborative tools there’s no need to gatekeepers to control the movement of information to the executive suite.

Irish economist David McWilliams — his television series on the rise of the Celtic Tiger, The Pope’s Children, and the causes of the Global Financial Crisis, Follow The Money, are highly recommended viewing – last week suggested that the forces that disrupted the working classes in the 1970s and 80s are now coming for middle classes.

“The industrial class was undermined by both technological change and globalisation, but rather than lament this, many people who were unaffected by this social catastrophe labelled what happened from 1980 to 2010 as the “inevitable consequences” of global competition.” Mc Williams writes.

Those ‘inevitable consequences’ are now coming for the middle classes, asserts McWilliams.

On the right side of progress

While this is sounds frightening it may not be bad for society as whole; the Twentieth Century saw two massive shifts in employment — the shift from manufacturing to services in the later years, and the shift from agriculture to city-based occupations earlier in the century.

A hundred years ago nearly a third of Australians worked in the agriculture sector; today it’s three per cent. Despite the cost to regional communities, the overall economy prospered from this shift.

Answers in the makers movement

The question today though is what jobs are going to replace those white collar jobs that did so well from the 1980s? The Maker Movement may have answers for governments and businesses wondering how to adapt to a new economy.

Two weeks ago President Barack Obama welcomed several dozen leaders of America’s new manufacturing movement to a Maker Faire at the White House, where he proclaimed “Today’s DIY Is Tomorrow’s ‘Made in America'”.

In Singapore, the government is putting its hopes on these new technologies boosting the country’s manufacturing industry in one of the world’s highest-cost centres.

“The future of manufacturing for us is about disruptive technologies, areas like 3D printing, automation and robotics,” Singapore’s Economic Development Board Managing Director Yeoh Keat Chuan told Reuters earlier this year.

Britain too is experimenting with modern technologies, as the BBC’s World of Business reports about how the country is reinventing its manufacturing industry.

Tim Chapman of the University of Sheffield’s Advanced Manufacturing Research Centre describes how the economics of manufacturing changes in a high-cost economy with a simple advance in machining rotor disks for Rolls-Royce Trent jet engines.

“These quite complex shaped grooves were taking 54 minutes of machining to make each of these slots. Rolls-Royce came to us and said can ‘can you improve the efficiency of this? Can you cut these slots faster?'”

“We reduced the cutting time from 54 minutes to 90 seconds.”

“That’s the kind of process improvement that companies need to achieve to manufacture in the UK.”

While leaders in the US, UK and Singapore ponder the future of manufacturing, Australian governments continue to have faith in their 1980s models of white collar employment — little illustrates how far out of touch the nation’s political classes are with reality when they proclaim Sydney’s future as an Asian banking centre or Renminbi trading hub.

Old business ideas

In the apparatchiks’ fevered imaginations this involves rooms full of sweaty white men in red braces yelling ‘buy’ into telephones as shown in 1980s Wall Street movies. In truth, the computers took most of those jobs two decades ago.

As McWilliams points out, the dislocations to the manufacturing industries of the 1970s and 80s were welcomed by those in the professions as the inevitable cost of ‘progress’.

Now progress might be coming for them. Our challenge is to make sure we’re on the right side of that progress.

Mining for jobs in an automated future

Increasingly automated mines show how the jobs of the future don’t lie in old industries.

While politicians clamour to ‘bring jobs home’, automation is increasingly taking those jobs away with the mining industry being the best example.

In 2015, McKinsey looked at the effects of automation in various US industries and found the production component of mining could lose over 80% of its jobs in coming years.

In a piece for Diginomica this week, I looked at a case study featuring Western Australia’s Fortescue Metal Group (FMG) from the recent AWS Summit in Sydney.

Slashing costs

When Fortescue planned their Solomon groups of iron ore mines in the Pilbara region of North-Western Australia in 2010, they estimated 75 manned trucks would be needed. As it turned out they only needed 49 robotic vehicles.

The savings, both in capital expenditure and operational costs was substantial and the entire operation saw its costs nearly halved.

It’s not just trucks becoming autonomous, functions like drilling and explosives laying are also being automated reducing costs and risks even further.

Dashed hopes

So mining communities like those in the United States hoping Donald Trump will bring back prosperity or Australians who believe a billion dollar subsidy to an Indian coal mining company will guarantee jobs are doomed to disappointment.

A modern mine is likely to employ more workers in an office thousands of miles away than on the site itself. Where once the surrounding region would get hundreds of jobs from a large mine, today it’s only going to be a handful.

It isn’t just the mine workers themselves though, McKinsey’s study also forecast the mining industry’s administrative workforce could see 90% of jobs going while senior management had the potential of being 99% automated.

Beyond blue collar roles

That this wave of automation will affect ‘white collar’ jobs as much as trades or unskilled workers isn’t new – this piece in 2015 for The Australian described how many of the ‘knowledge economy’ jobs will soon be done by robots or artificial intelligence.

Mining is a good indicator of where technology and employment is heading. We, and our political leaders, are going to have to think carefully where the future jobs are coming from as they aren’t going to be found in resurrecting old industries.

Automating out white collar jobs

The effects of automation are difficult to predict but the machines are coming for management and white collar roles.

 

The statistics continue to come about the challenging future of work with the Harvard Business Review looking at how artificial intelligence is changing the role of knowledge workers and the World Economic Forum reports how Japan is already well down the track of automating many ‘white collar’ roles.

A couple of decades or so back, the assumption was ‘knowledge work’ represented the future of employment and the thought of management being replaced by computers or robots was unthinkable.

That hasn’t proved to be so as the low end jobs, which we thought would be taken up by displaced industrial workers were offshored, subject to a ‘race to the bottom’ in pay rates and, now, are increasingly becoming automated.

While the robots first came for call centre workers, it’s quite likely the next wave of will affect white colour workers reports Dan Tynan in The Guardian who has an overview of some of the likely fates of various occupations.

A good example of the shift, are lawyers with Tynan citing the company DoNotPay which uses AI to help customers fight traffic infringements as an example of the legal profession being automated out.

Bad for young lawyers

This though isn’t new in the legal profession. Over the past twenty years many roles in fields such as property conveyancing and contract drafting have been offshored, so much so that junior lawyer’s payrates and job prospects have collapsed as entry level jobs have dried up.

How the legal profession has used automation and offshoring is a good indicator of how these tradition industries are evolving, now a senior lawyer can handle more work and the need for juniors and paralegals is reduced. The work stays with the older worker while younger workers need to look elsewhere.

While Tynan discounts the effects of automation on the construction and health industries, those sectors are similarly being changed. Robot bricklayers, for example, allow older workers to stay in the industry longer and increase productivity.

The internet of things and artificial intelligence are similarly taking the load of nurses and doctors while making diagnostics faster and easier with major ramifications of these industries.

Dirty data

There are weaknesses in a data driven world and this gives us clues to where the future jobs may lie, the Harvard Business Review optimistically notes many roles can “composed of work that can be codified into standard steps and of decisions based on cleanly formatted data,” however obtaining ‘cleanly formatted data’ is a challenge for many organisations and managing exceptions, or ‘dirty data’ feeds, shouldn’t be underestimated.

Unexpected consequences exist as well, the media industry being a good example. While the demand for content has exploded, the rise of user generated content on social media and the collapse of advertising models has upended publishing, writing and journalism. While artificial intelligence and animation can replace actors and reporters, it hasn’t done so in a major way yet.

How industry sectors will be affected by automation is something the US Bureau of Labor Statistics looked at in 2010.

The roles which the US BLS estimates may be less affected by automation may be more affected than we think – how the retail and media industries changed in the twentieth century is instructive where the models at the beginning of the century were upended but by the end of the millennium employment in those sectors was higher than ever.

The future of work isn’t obvious and the effects of automation bring a range of unforeseen consequence and opportunities – this is why we can’t rest on our laurels and assume our jobs, trades and professions will be untouched by change.

Avoiding a neo-feudal future

We have to rethink our economies if we’re to avoid a neo-feudal future warns writer Paul Mason.

“Neo liberalism is dead” was Paul Mason’s opening for his talk ‘Will Robots Kill Capitalism?’ At Sydney university on Monday night.

Mason, who was promoting his book ‘Postcapitalism: A Guide to Our Future’ was exploring how we create an alternative to the failing neo-liberal world while avoiding the failings of the past.

Describing the current ennui towards establishment politics as being “the biggest change since the fall of the wall in 1989,” Mason believes that the neo-Liberal, pro-markets, view of the world is now failing because the general population increasingly can’t afford the credit which powers the current system.

Increasing voter hostility

With increased insecurity the general population’s hostility towards the global elites is only going to increase, Mason says, as a low work future is traps people into low income ‘bullshit jobs’.

Mason describes a bullshit job as being something like the hand car washes that have popped up around UK (and Australia) where workers are paid the absolute minimum to provide a service cheaper than any machine.

With bullshit jobs, it’s hard not to consider the white collar equivalent – just yesterday The Guardian, which Mason writes for – described a report by UK think tank Reform which suggested 90% of British public service jobs could be replaced by chatbots and artificial intelligence.

It’s easy to see those same technologies being employed in the private sector as well with middle management and occupations like Human Resources and internal communications being easily automated out by much flatter organisations.

A low work future

The result of that, which we’re already seeing, is increasingly profitable corporations that barely employ anyone.

However for companies like Google, Facebook and Apple those business models also present risks as they are valued by the market far beyond any reasonable expectation of return – even if they do manage to eat each other.

Another risk to today’s tech behemoths is the commoditization of many of their industries. “Not all of the high tech economy will be a high value economy.” Mason point out, going on to observe that Google may have recognised this in carrying out their Alphabet restructure.

The neoliberal Anglos

Not all countries though have followed the Anglo Saxon neo-liberal model over the past forty years though. In what Mason describes as “The yin and yang of globalIzation,” he point out China, Germany, Japan and South Korea Have focused on production and raising living standards while the English speaking nations enforced austerity on their populations with large groups being left behind both socially and economically.

Which leads to Mason’s key question, “will the low work future see neoliberalism replaced by ‘neo-feudalism’ or something more enlightened?”

To support the latter, Mason suggests a transition path into the ‘low work future with the following features;

  • automation
  • basic income
  • state provided cheap, basic goods
  • externalising the public good
  • attacking rent seeking
  • promoting the circular economy
  • investing in renewable energy

That list seems problematic, and at best hopelessly idealistic, in today’s economies – particularly in the neoliberal Anglosphere.

A need for new mechanisms

Mason’s points though are important to consider if we are facing a ‘low work’ society as there has to be some mechanisms to allow citizens a decent standard of living even if the bulk of the population is unemployed.

Even if we aren’t facing a low work future, the transition effects we’re currently experiencing where many of today’s jobs are going to be automated away threaten serious political and economic dislocation in the short to medium term.

What Mason reminds us is that the political and economic status quos can’t be maintained in the face of dramatic technological change. We have to consider how we’re going to manage today’s transformations so we don’t end up in a neo-feudal society with the discontent that will entail.

 

Robots replace Chinese factory workers

Taiwan’s Foxcomm, the world’s biggest electronics manufacturer, has announced it will replace 60,000 Chinese workers with robots.

Taiwan’s Foxcomm, the world’s biggest electronics manufacturer, has announced it will replace 60,000 Chinese workers with robots.

As the cost of robotics falls and the price of Chinese labour increases, the economics of automating low skilled work increasingly looks attractive.

While automating manual work is process that’s been familiar for three centuries, this automation is now heading into the management suite as artificial intelligence increasingly becomes a viable alternative for lower level supervisory roles.

The workplace of the future is going to look very different to today’s, all of us need to be asking if we have the skills that will be needed by it.

Disrupting professional services

Stripe’s US business registration service shows how professional services companies are under threat

As Irish immigrants, the founders of San Francisco payments company Stripe, John and Patrick Collison, know too well the difficulties of setting up a US based corporation.

So the company establishing Stripe Atlas, a service to help foreign entrepreneurs set up their US presence makes sense and the payments services bundled into the package may also generate business for the brothers.

The Stripe Atlas service also illustrates the challenges facing professional services businesses as the service automates many of the bread and butter tasks that were good earners for lawyers and accountants.

Until recently it was thought those ‘higher level’ occupations would escape disruption, now it appears software will eat the professions as well.

Where the jobs will go

An Australian state government survey outlines the impact of automation on employment

That automation is having a profound impact on existing jobs is beginning to be appreciated by governments. A study by the New South Wales government’s Parliamentary research service examines what the effects will be on the Australian state’s economy.

Like equivalent overseas studies, the report finds over half the state’s jobs – a total of 1.5 million positions – could be at risk from computerisation.

An interesting aspect of this is the bulk of the impacts being felt in the mining, construction and logistics industries. While there’s no doubt those sectors will be hard hit, particularly for lower skilled workers, the assumption is higher level positions in management and supervisory roles won’t be as greatly affected.

Examples of this include ‘professionals’ only being at a 4.6% risk of being displaced and ‘General Managers’ at 5.0%. This compares to labourers at 96.1% and 95.7% of ‘filing and registry clerks’ losing their jobs.

While there’s no doubt the lesser skilled roles are at immediate risk, and have been for decades, the rise of artificial intelligence and business automation are increasingly going to put management roles at risk.

Quibbles aside, the report is a good read on the impacts of automation and computerisation on what has been one of the western world’s more successful economies.

The hollowing out process of Australia’s middle classes it describes show that phenomenon is not just confined to the United States and this probably creates the greatest challenge to politicians as populists seek to blame foreigners and minorities for much of the population’s declining fortunes.

Almost every government in the world is facing these issues and the efforts of public servants and economists to accurately describe what’s happening has to be applauded and encouraged.

For voters and workers, reading these reports to understand the forces changing their industries and communities is essential to making informed choices at the ballot box and the workplace.

Beating the robot takeover

The future of work may lie in the fact humans aren’t particularly reliable

Which jobs can’t be done by robots asks a blog post on the World Economic Forum website.

Among the occupations discussed in the post that might be less susceptible to automation include occupational therapists, surgeons, choreographers and pre-school teachers. None of those fields are exactly large fields or accessible to the average worker.

More concerning, the report the blog post is based upon was written in 2013. Advances in automation and artificial intelligence mean the effects of technological change are almost certainly being understated.

Regardless of how automation proof individual occupations are a simple challenge for humans competing against machines is the biggest problem employers report is finding reliable and punctual workers.

Maybe we’re all putting ourselves out of jobs.

Engineering for change – the ethics of the new economy

What are the ethical and societal considerations we should consider with today’s technology?

Technologies like the internet of things, cloud computing, 3D printing and big data are changing our industries and society. At the ACI Connect event today, I gave a presentation on some of the opportunities, risks and ethical issues facing technologists and engineers in the connected economy.

While many of the engineering principles underlying these technologies aren’t new, their scale and the power they give businesses and governments means there are serious ethical, security and societal issues we have to consider.

This presentation explores some of those issues and the technologies and trends driving them.

Entering the Data era

A conceit among technologists is that we’re in an unprecedented era of change. This is not true.

The Twentieth Century saw massive restructuring of our society as the telephone, mains electricity, the motor car and television changed our society. Many of today’s settled industries came out of the huge technological steps forward over the last hundred years.

Just as cheap energy – delivered to us through the motor car and mains electricity – defined the Twentieth Century, this century will be defined by easily accessible and abundant information.

Those changes over the last hundred years give us some hint as to where we are going; the shifts that saw coal carters, newspaper sellers and night soil men eventually become extinct, along with a shift from a largely agricultural workforce to industrialised employment, is going to be repeated this century as information becomes abundant.

Harnessing the Internet of bees

Cheap and small sensors mean it’s easier to put a chip on something. In this case we have a CSIRO project tracking bee activity where Tasmanian scientists have put tracking devices on bees.

Those tracking devices would have weighed several hundred grams and cost hundreds of dollars ten years ago but today they are small and cheap enough to fit onto the backs of bees.

Being able to deploy these sensors means we can fit them to things we couldn’t have imagined a few years ago and the data they generate is going to give us insights into patterns and behaviours we couldn’t have contemplated.

However not all of this data is useful or necessary and some may even be damaging to individuals and groups. One ethical question we have to ask ourselves is whether it is in the community’s interests to collect this information.

Another aspect of connecting devices, or even animals and people, to the Internet or a network is it opens the possibility of hacking, as we’ve seen in the recent Jeep case where engineers showed they could control a vehicle remotely. The security and privacy aspects of the IoT are critical and something designers and product engineers can’t overlook.

Decoding the data

It’s often said that Data is the New Oil. In truth it isn’t, data is increasingly cheap and easy to access. Being able to analyse that information is where the power lies.

Data analytics is probably going to be one of the most important fields in an information rich economy and already we’re seeing companies springing up to help farmers estimate crop yields, truck drivers plan their routes and even organisations like the Royal Flying Doctor Service using cloud services to better plan their operations.

Again these services plan a lot but there’s also downsides as inappropriate data matching risks breaching consumers’ privacy and even drawing false conclusions from confusing correlation with causation. A good example of this is Facebook being used to judge credit worthiness.

Removing the human element

Automation – whether it’s through robotics, machine learning or algorithms – will change many industries and the workforces employed by them.

One understated field is management where many white collar supervisor jobs are at risk from business automation. It may be that the executive suites are the next sector to be decimated by computers and robots.

Similarly, many services industry jobs such as taxi drivers and baristas are at risk from robotics while large scale 3D printing of buildings threatens to put many building trades under pressure.

No more truck drivers

Driverless vehicles have a whole range of applications, in logistics were seeing them put forklift drivers out of work while mining companies are rolling out massive dump trucks in their new mines that don’t require $200,000 a year drivers.

One study estimates that half the police workforce in the United States would become redundant as law abiding driverless cars become common.

Similarly electric cars will have a massive impact on government revenues. Currently Australian governments raise $17bn a year from fuel excise and has ramifications for businesses involved in the supply chain for service stations.

Once driverless vehicles become commonplace we may well see them changing industries like daycare, public transport and couriers as it becomes possible to summon an autonomous vehicle, put the kids or the luggage into it and then send it off to its destination. If you’re worried, you can track the progress on an app.

The effects of the driverless car show how we have to think laterally about the effects of new technologies on our businesses, sometimes the effects of a new way of doing things could indirectly hurt our business or create new opportunities.

Squeezing out inefficiencies

One of the great promises for the IoT, Big Data and business automation is to remove inefficiencies from industry. Cisco believe that up to 14% of the Oil and Gas industry’s costs could be stripped away with today’s technologies. That in itself is worth over a 100 billion dollars a year in cost savings.

GE are deploying their technologies into a diverse range of industrial equipment ranging from jet engines to railway locomotives and wind turbines with spectacular results in reducing costs and improving productivity.

The effect of these improvements means less downtime and maintenance costs which are good news for customers and shareholder of these companies, but bad news if you’re a maintenance business. It also means the speed of change in business is accelerating.

Skilling the future workforce

In summary the skills needed today are very different to those of 1915 and 1965 and those of the next fifty years will be even different.

As a society we have to decide what skills we are going to give not our children but those currently still in the workforce who are going to be working longer and later into their lives as the workforce ages.

We also have to consider what sort of ethical compass we have. While the technology we have today is powerful and capable of great things, it’s also capable of great harm. We need to have an understanding of what the effects and limits are of our actions with the Internet of Things, Big Data and analytics.

Ultimately we need to ask what value we as individuals can add to our communities and society.

Automating the farm with drones

Drones promise to further automate agriculture

Can unmanned aircraft solve Australia’s feral animal problem? Startup Ninox Robotics believes sending military-grade unmanned aerial vehicles (UAVs) into the country’s outback can help farmers control pests such as wild dogs and pigs on their sprawling properties.

“Australian landholders and managers have been struggling against the problem of invasive pest species for decades, including feral dogs, pigs, deer and rabbits,” says the co-founder and CEO of privately owned Ninox, Marcus Elrich.

Government steps in

Regulatory requirements on commercial drones such as their only being allowed for line of sight operations during daylight hours and below 400m has limited the deployment of UAVs in large scale agricultural applications, particularly with feral animals that tend to come out at night.

Ninox’s drones, supplied and operated by Israeli UAV supplier Bluebird, are licensed to operate in the dark and up to 50km from their base. They also have a detachable head that allows operators to switch cameras for different operations, allowing for normal cameras during daytime and infrared at night.

The trial, being conducted by Ninox Robotics, is the most ambitious civilian drone trial ever conducted in Australian airspace. It utilises state of the art UAVs with advanced real time thermal imaging capabilities to detect invasive pests in rural areas.

Currently Ninox only has approval from the Australian Civil Aviation and Safety Authority (CASA) to run three-week trials at selected sites in southern Queensland and northern New South Wales.

Services to farmers

Should the trials be successful and Ninox obtain a wider operating license from CASA, Elrich is looking at offering the service to farmers, government agencies and utility companies for operations ranging from pest control to asset and stock management along with search and rescue roles for emergency services.

While the use of military drones is substantially more expensive than commercial drones with the costs currently around $3,000 per flight, Elrich believes the service is competitive with manned helicopter operations that many properties in rural Australia require.

Should the drones be successful on Australia’s sprawling farms, it’s going to be another example of how the current wave of technologies is further automating agriculture. There’s a lot more labour to be saved with these devices.

At present Elrich and Ninox see pest management as the initial application, but there’s many other ways farmers can be using robot technologies.

A generation free of poverty and labor

Technology promises to free the next generation of poverty and labor but a new social compact will be needed.

How will the future workforce look? A report by Australia’s Committee for Economic Development seeks to give a picture of how employment might look at the end of next decade.

Australia’s Future Workforce is a weighty tome covering the current structure of the nation’s economy, its trends and the factors affecting employment over the next two decades.

The report makes it clear the economy will be very different observing 40 per cent of Australia’s workforce, more than five million people, is likely be replaced by automation over the next twenty years.

In the opening chapter, Reshaping Work for the Future, Professor Lynda Gratton of the London Business School describes the share of the future workforce where roles are more specialised and automation increasingly takes over less complex jobs.

An important aspect Professor Gratton also flags is the aging population which in a rapidly changing economy will require frequent retraining.

From a technology perspective Professor Hugh Bradlow, the Chief Scientist of Telstra, suggests the workforce will be more mobile and employed in fields less amenable to computerisation involving skills like social intelligence, creative talents and social intelligence.

Those without those skills are deeply at risk with Bradlow being the first in the report to cite the likelihood that two fifths of the workforce are at risk of losing their jobs.

Bradlow concludes his analysis with the observation that if we work to satisfy our basic needs then machines looking after these requirements free up the workforce to address higher intellectual pursuits.

Rethinking management

Belinda Tee and Jessica Xu, both of IBM, agree with Bradlow that technologies like IBM Watson will help skilled workers like doctors and teachers deliver their services more efficiently.

Xu and Tee suggest change in the workforce will need to start at the top with managers needing to enhance collaboration within the organisations and build diverse teams working on open data.

A two speed economy

How the effects are distributed across the workforce is probably one of the most important aspects of this report with a team from the soon to be abolished National ICT Australia mapping the regions that will be most affected by automation.

The news for many of the country’s regions is not good with the survey finding workers in most areas have more than a fifty percent chance of losing their jobs to automation.

NICTA’s bad news for the regions ties into a recent PwC report that found Australia’s economic power has been increasingly concentrated in the nation’s capital cities.

A mixed future

In many respects the CEDA report is disappointing, while it flags many of the issues facing today’s workforce and the forces shaping it, the survey doesn’t identify the industries and occupations likely to benefit.

Despite not stating the growth sectors, the report’s overall view of the future workplace is optimistic as Telstra’s Hugh Bradlow says: “The change could result in a new generation free of poverty and the burden of labor, thereby unleashing the next wave of human innovation and creativity in directions we can never imagine.”

This may be the case but the to achieve that will require, as the report later suggests, a new social compact.

It’s building that new social compact which could be the greatest task ahead of us.