FinTech Journal Authors: Yeshim Deniz, Elizabeth White, Flint Brenton, Ayman Sayed, Valeriia Timokhina

Related Topics: @ThingsExpo, Machine Learning , Artificial Intelligence

@ThingsExpo: Article

Life After the Robot Apocalypse | @ThingsExpo #IoT #M2M #MachineLearning

Let’s expand the definition of robot to any autonomous system designed to do work that used to require humans to perform

Two weeks ago, I compiled a list of the 5 jobs robots will take first. Last week, I compiled a list of the 5 jobs robots will take last. Both previous essays are about robots replacing human workers who do cognitive nonrepetitive work (such as middle managers, salespersons, tax accountants, and report writers) that most people do not believe robots will be able to do any time soon. For those essays, I defined robots as technologies, such as machine learning algorithms running on purpose-built computer platforms, that have been trained to perform tasks that currently require humans to perform.

For this writing, let’s expand the definition of robot to any autonomous system designed to do work that used to require humans to perform. And let’s expand our thought experiment to include all four major categories of human tasks: Manual repetitive (predictable), Manual nonrepetitive (not predictable), Cognitive repetitive (predictable), Cognitive nonrepetitive (not predictable). In other words, let’s look at some probable futures of the real world and see where our conclusions lead us.

Joe Driver
Before being made eligible for assistance under the Universal Minimum Guaranteed Income Program Act of 2021 (also known as the “U-Min” bill, which guarantees workers displaced by robots a living wage), Joe was a professional driver.

Wait! Full Stop! Way Too Easy
Agreed. A huge number of transportation industry professionals will be replaced by autonomous vehicles, and so will dispatchers, warehouse workers and the managers who manage them. That is the easy part.

For our thought experiment, let’s replace just 20 percent of taxi, car service and truck drivers with autonomous vehicles. Now, let’s think about the businesses that service these workers. The local deli where the drivers used to stop for coffee. The attached convenience store that enables the gas station owner to run a profitable business (because there’s not enough margin in selling gas alone). The quick-serve restaurants, the supermarkets, etc. Let’s try to imagine a world where just 20 percent of transportation industry workers were laid off. Could the businesses that rely on these transportation workers survive the commensurate permanent decline in revenue?

“This is nonsense,” you say. “These people will be retrained or find other jobs.” I don’t think so, but let’s assume you are right. The other jobs (whatever they may be) will have completely different traffic patterns (no pun intended). New behaviors will emerge and the impact of this massive behavior change will be about as pleasant as when the big box stores came to town and literally killed every mom-and-pop retail store on Main Street. Town survived, but it has never looked, felt or been the same.

In practice, this is just the soundbite version of Robot Apocalypse. Let’s go deeper.

Joe Executive
Before qualifying for subsidies under U-Min, Joe was a CPA and a tax auditing partner at a Big Four accounting firm. With more than 15 years of experience working with some of the biggest corporations in the world, his entire department was replaced by AlphaAudit from Google’s DeepMind group. Interestingly, every partner in Joe’s practice area was earning more than $450,000 per year. Some were making north of $2.1 million per year. What will they do now? Where do you take 15–25 years of accounting experience and use it in a nonaccounting job?

FOMO, “Fear of Missing Out”
If you’re wondering about the driving force behind the Robot Apocalypse, it’s FOMO, “fear of missing out.” Making the converging trends of on-demand behavior, machine learning and autonomy actionable has gone from talking points to 40 percent of our business in under two years. All of our consulting clients are rushing to put autonomous systems and machine learning tools to work. It’s not that AI systems are “plug ’n’ play” – they are far from it. But I don’t know even one CEO who wants to wake up one morning to the news that a competitor has deployed an automated system that enabled a newsworthy increase in EBITDA. In a corporate world driven by earnings calls, that would be considered a very bad day.

Which Leads Us to … Life After the Robot Apocalypse
For this imperfect guessing game about the future, let’s take some real world financial statistics to benchmark the apocalypse.

The Tax Base of the United States of America
According to an article on marketwatch.com, “An estimated 45.3% of American households — roughly 77.5 million — will pay no federal individual income tax.” The article goes on to say, “The top 1% of Americans, who have an average income of more than $2.1 million, pay 43.6% of all the federal individual income tax in the U.S.”

So, what would life be like if 20 percent of the one percent of Americans who pay 43.6 percent of all the federal individual income tax in the United States lost their jobs to robots?

The Spectrum of Probable Futures
On one extreme end of the spectrum are common post-apocalyptic themes such as spotty power, energy shortages, food shortages, no running water, nonfunctioning schools, limited resources, reduced or nonexistent healthcare, etc. I don’t think this is where we’re headed.

On the other extreme end of the spectrum is “Robotopia,” a place where humans have more time to do leisure activities, be creative, live life to the fullest, eat gourmet food, drink exotic vintage wines and spirits, practice the arts, and live under the protection of a master artificial intelligence, free from disease, free from fear, free from war … heaven on earth. I don’t think this is where we’re headed either.

Somewhere in between these two extreme views of life after the Robot Apocalypse is where we are probably going find ourselves. It’s a world where the tax base has been severely impacted by the redistribution of workers. Wizened, experienced, lifelong professionals are going to find themselves in a new world that has no interest in them. New jobs will be created in industries that do not yet exist. And the physical world will be continuously adapted and optimized to favor autonomous systems that reduce cost, improve efficacy and increase productivity.

This Is Going to Be a Huge Struggle
Will we need my hypothetical, Universal Minimum Guaranteed Income Program Act of 2021? We might. Questions like “If we all lose our jobs, who will buy the goods that the robots produce?” are good ones. We won’t all lose our jobs, but a significant percentage of people will and, in the process, be rendered unemployable.

That said, one friend of mine, who is a renowned public policy expert in D.C., told me that nothing was going to happen because we already have a nontaxpaying population explosion that is completely out of control. He opined that public assistance programs will simply continue to increase until no one except the top .05 percent of wage earners pays for anything.

The Time for Policy Innovation Is Now
It’s time for policymakers to approach policy innovation the way our corporate clients are approaching their own digital transformations. As I’ve been saying for years, today we are experiencing the slowest rate of technological change we will ever experience for the rest of our lives. The pace of technological progress is not going to slow down, ever! FOMO is a powerful force that will continue to drive innovation. We get to choose what life after the Robot Apocalypse will be like. Let’s choose wisely.

Additional Reading
Here are a few articles to use as thought starters:

The post Life After the Robot Apocalypse originally appeared here on Shelly Palmer

More Stories By Shelly Palmer

Shelly Palmer is the host of Fox Television’s "Shelly Palmer Digital Living" television show about living and working in a digital world. He is Fox 5′s (WNYW-TV New York) Tech Expert and the host of United Stations Radio Network’s, MediaBytes, a daily syndicated radio report that features insightful commentary and a unique insiders take on the biggest stories in technology, media, and entertainment.

@ThingsExpo Stories
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial C...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term.
To Really Work for Enterprises, MultiCloud Adoption Requires Far Better and Inclusive Cloud Monitoring and Cost Management … But How? Overwhelmingly, even as enterprises have adopted cloud computing and are expanding to multi-cloud computing, IT leaders remain concerned about how to monitor, manage and control costs across hybrid and multi-cloud deployments. It’s clear that traditional IT monitoring and management approaches, designed after all for on-premises data centers, are falling short in ...
With privacy often voiced as the primary concern when using cloud based services, SyncriBox was designed to ensure that the software remains completely under the customer's control. Having both the source and destination files remain under the user?s control, there are no privacy or security issues. Since files are synchronized using Syncrify Server, no third party ever sees these files.
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, shared examples from a wide range of industries – including en...
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Rodrigo Coutinho is part of OutSystems' founders' team and currently the Head of Product Design. He provides a cross-functional role where he supports Product Management in defining the positioning and direction of the Agile Platform, while at the same time promoting model-based development and new techniques to deliver applications in the cloud.
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of bus...
delaPlex is a global technology and software development solutions and consulting provider, deeply committed to helping companies drive growth, revenue and marketplace value. Since 2008, delaPlex's objective has been to be a trusted advisor to its clients. By redefining the outsourcing industry's business model, the innovative delaPlex Agile Business Framework brings an unmatched alliance of industry experts, across industries and functional skillsets, to clients anywhere around the world.
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
Headquartered in Plainsboro, NJ, Synametrics Technologies has provided IT professionals and computer systems developers since 1997. Based on the success of their initial product offerings (WinSQL and DeltaCopy), the company continues to create and hone innovative products that help its customers get more from their computer applications, databases and infrastructure. To date, over one million users around the world have chosen Synametrics solutions to help power their accelerated business or per...