The Rise of Automation: Creating and Transforming Jobs

The Rise of Automation: Creating and Transforming Jobs

Automation has been a recurring theme throughout human history. With each wave of automation, there is a natural fear that jobs will disappear and unemployment rates will rise. However, history has shown us that this is not the case. In fact, every time we go through a wave of automation, whole classes of jobs may disappear, but new classes of jobs are created. This process may cause frictional pain and dislocation in the short term, but over time, the total number of jobs doesn't decrease, and we all become more prosperous.

If we look back to the 19th century, no one in 1800 would have predicted that in 1900, a million Americans would be working on railways. Similarly, in 1900, no one would have predicted employment categories such as 'video post-production' or 'software engineer'. The misconception that there is a fixed amount of work to be done, and that automation will result in less work for people, is known as the Lump of Labour fallacy. However, history has proven this fallacy wrong.

The truth is, automation and the Jevons Paradox work hand in hand to create more jobs. The Jevons Paradox states that if we make a technology more efficient, we will use more of it and use it for new and different things. This, in turn, creates a demand for more jobs. As we automate certain tasks, we open up new possibilities and industries that require human expertise and creativity. Innovation connects to price elasticity, leading to increased job opportunities and economic growth.

However, it is important to note that integrating automation into existing systems is not always a seamless process. We often try to make new tools fit into old ways of working, but over time, we adapt and change how we work to fit the tools. This is especially challenging for big complicated companies that hold other people's businesses. There is a significant difference between an amazing demo of a transformative technology and something that can be effectively implemented in a large enterprise. The decision cycle for enterprises tends to be longer than the funding cycle for startups, creating a mismatch in timelines and expectations.

In a different realm of human behavior, researchers have discovered the best way to avoid procrastination. Surprisingly, setting a deadline can actually have a negative impact on productivity. If you want someone to help you out with something, it is best not to set a deadline at all. But if you do set a deadline, make it short. Specifying a longer deadline removes the urgency to act, leading to procrastination. On the other hand, no deadline or a one-week deadline motivates people to respond early and complete the task. This phenomenon can be attributed to the perception of urgency and the tendency to forget or become inattentive if given too much time.

Combining these two realms of automation and procrastination, we can draw some actionable advice for individuals and organizations:

1. Embrace automation as an opportunity: Instead of fearing job loss, view automation as a catalyst for new job creation. Identify areas where automation can enhance productivity and open up new possibilities for human ingenuity. Embrace the mindset of adapting and evolving with technology rather than resisting it.

2. Set shorter deadlines: When assigning tasks or seeking assistance, consider setting shorter deadlines. This creates a sense of urgency and helps combat procrastination. Be mindful of the balance between giving enough time for quality work and avoiding excessive delays caused by longer deadlines.

3. Align decision cycles and funding cycles: In the context of enterprise software startups, it is crucial to align decision cycles with funding cycles. This can help bridge the gap between transformative technologies and effective implementation in large organizations. Collaboration and communication between startups and enterprises are key to overcoming the challenges posed by different timelines.

In conclusion, automation and the automation of work have been integral parts of human progress. While there may be temporary disruptions and challenges, history has shown us that jobs are not lost but transformed and created. By understanding the dynamics of automation and the psychology of human behavior, we can navigate this ever-changing landscape and create a prosperous future for all.