Artificial Intelligence (AI): The fundamental change in our daily work routine, the way we live and interact with others, is all going to be represented by the fourth industrial revolution.
Moving from the third to the fourth industrial revolution is going to open a new chapter in human development – incorporating the extraordinary technological advances. These advanced technologies are emerging and will continue to merge in the business world. We see the fourth industrial revolution changing the digital, physical, and biological worlds. It is creating novel opportunities and promises of a better future.
On the other hand, the evolution of technology will become the reason for potential risks and dangers. The fourth industrial revolution is a lot more than just technology-driven change. The revolution is providing various opportunities to facilitate everyone. We see it harnessing technologies to create an inclusive human-centered future.
Fast-paced revolutions force people to rethink what it means to live in a world surrounded by AI technology and question how organizations will develop and create their market value.
Challenges and Opportunities
The fourth industrial revolution is the continuation of the third for, the digital revolution has already marked the industries since the last century. However, this revolution is based on the fusion of technologies that are eventually blurring the thin lines between the physical, digital and biological sphere.
The fourth revolution, no doubt, is based on the previous revolution, but it can be counted just as prolongation of the third industrial revolution. The evolution speed, scope and system impacts are the driving factors that make the Fourth Industrial revolution the distinct.
The current breakthroughs are no longer occurring in a defined period and time. Comparing this period with the previous revolutions, it can be clearly analyzed that the fourth industrial revolution is evolving at an exponential pace. It proceeds at a linear pace, disrupting almost all industries and sectors in every country.
These reasons govern the transformation of the entire business world, production and management, and even the government sector.
What Economists Say
Economists say the fourth industrial revolution has a significant tendency to improve the lifestyle of the people all across the globe by raising global income levels. For now, consumers are the ones who are taking the most advantage from the digital world because of AI-powered products and services.
These innovations are there to facilitate us in our daily lives, either professional or personal. From ordering food to purchasing items and making payments remotely is all because of the technology. Not to forget Alexa being one of the finest inventions of AI.
Technological innovations are expected to lead the supply-side industry producing long-term gains. Reducing communication and transportation costs will drop. This will eventually result in more effective logistics and global supply chain.
Furthermore, it will eradicate the trading cost and expenditures. This is major factor in driving economic growth by opening new markets.
However, some economists have pointed out that the fourth revolution could impose major challenges by disrupting the labor markets. The AI technology is often taken as a substitute for human intelligence, even the idea behind the invention of the technology is to automate the manual processes for increased productivity and efficiency.
It is believed that automation can substitute for labor across various industries in the entire economy, which may increase the gap between capitals and labors. On another note, the automation can also result in secure and rewarding job opportunities. It can either of the case or maybe the hybrid – a combination of both.
The Future of Work
One of the greatest societal concerns associated with the fourth industrial revolution is “inequality.” The term inequality explains the rising gaps between the labors and the people dependent on capital in terms of financial gains and wealth.
The group of intellectual and physical capital providers includes innovators and investors. And stakeholders are significant beneficiaries of this innovation and technology.
Technology evolution is leading to a vast advancement in automation. With every passing day, the manual processes are becoming automated and will continue in the future as well. It is one of the major reasons why people fear for their jobs.
The increased demand for highly skilled labor in developing countries is an understood fact. It results in high-end jobs for highly-skilled workers leaving minimal opportunities for middle-class people.
According to McKinsey, around 375 million workers may have to change their job occupation by 2030 because market labor demand is rapidly changing.
Despite these challenges, with the ability to come up with novel practices can provide us with new opportunities.