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An insurance firm in Japan has made more than 30 employees redundant and replaced them with an artificial intelligence system that can calculate payouts to policyholders. Fukoku Mutual Like Insurance believes it will increase productivity by 30% and see a return on investment in less than two years. According to a report by the Nomura Research Institute, nearly half of all jobs in Japan could be performed by robots by 2035.
Whilst artificial intelligence programs can increasingly replace workers, Richard B. Freeman suggests that workers can benefit by owning part of the capital that replaces them. He writes, “Workers could own shares of the firm, hold stock options, or be paid in part from the profits. Without ownership stakes, workers will become serfs working on behalf of robot overlords.”
Marco Vivarelli is optimistic about technological change in his article Innovation and employment. He writes, “Industrial and innovation policies that support research and product innovation, especially in high-tech sectors, can lead to the emergence of new firms and sectors—and new jobs."
For further analysis on innovation and the future of work, read:
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