Automation and the “Creation of a New World”

Why “Think Different” is Necessary in a Digital Age

Think finance, business, work, energy, health and law. But this is not going to be easy.

Take the example of work.

Broadly speaking, we can distinguish between two “schools of thought”, even amongst those who accept that automation will soon transform the workplace. The first group points to the emergence of mass poverty, wealth inequality and new forms of social exclusion as a result of automation depriving large sections of the workforce of employment opportunities. The second group takes a more “positive” view. They are convinced that we will find ways to deal with these issues. They believe that those groups that have traditionally performed “routine” work will be able to find alternatives.

But, in one important sense, it doesn’t matter which group you belong to. There is no “right” answer. The crucial point is that the future is open and everyone is going to have to “Think Different” in the “creation of a new automated world”.

This Technological Revolution is Different

We are on the brink of a “new world” centered around digitization, automation and machine intelligence.

The challenge of coming to terms with these “differences” requires us all to “Think Different”. 

#1 — The Complexity of Technological Change

Current technological innovations in the area of smart machines, sensors, big data, etc., appear to be faster and more wide-ranging.

#2 — The Key Role of Consumers in Driving Innovation

Previous technological revolutions were, broadly speaking, spearheaded and controlled by a combination of industry and (national) governments working together to deliver innovation to the market.

But this time, things seem to be different.

Consumers play a much more central role in both driving technological change and determining its scope and impact.

Think of smart phones, drones, games, etc. What is interesting is that whenever new innovations make life more convenient or meaningful for consumers, they are very quickly accepted by society as a whole.

This widespread consumer adoption of new innovations has a number of interesting side effects.

• Access to finance becomes easier. Professional investors, such as venture capital funds and “angels”, naturally gravitate to technologies with mass consumer appeal. But, increasingly, innovators can turn to the public for funding (through crowdfunding or initial coin offerings). This then feeds the “hype” which encourages even more professional investors to invest in what is perceived as the “next big thing”.

• The “next big thing” argument plays a key role in convincing large corporations to invest heavily in new automation and digitization applications. Consumer success provides a powerful override to the in-built cautiousness of established corporations when dealing with innovation.

• Finally, governments see innovations with broad consumer appeal as a powerful means to boost economic growth or other public policy goals. For example, innovation can provide an opportunity for a government to solve demographic issues (think Japan) or others.

#3 – The Uncertain Social Effects of New Technologies

The social effects and meaning of new technologies today are more dynamic and complex than with previous technological revolutions.

“Think Different” as the Mantra of a “Digital Age”

The urgency of responding to new “automation technologies” means that we don’t have time to adopt a “wait-and-see” approach.

More and more of us believe that issues regarding bureaucracy, middlemen, legacy systems, human error, corruption and fraud can be solved by automated technologies.

Particularly, the combination of blockchain technologies, artificial intelligence, robots and sensors offer a powerful and “convenient” alternative for business, consumers and government.

The new world of automation means that we will have to re-think banking, tax, retirement and pension policies, as well as employment.

It will also have a significant impact on our legal systems, which will have to be re-visited in light of the sharing economy and blockchain. And the implications for energy and the environment are similarly far-reaching.