Long Term Solutions

Robotics has come a long way and is integrating into our day-to-day. And its partner artificial intelligence is right there with it. Together, they are proving machines can in fact replace employees.  

That foundation existed when the SARS-CoV-2 arrived in America in March 2020 (arguably earlier). But as the world of work pivoted, and the age of remote work, Zoom, and virtuality came into vogue, offices emptied, technology prospered, and the world changes. We witnessed cadres of workers reluctant to return to the previous work world, and some refused to return at all. See The Great Resignation (October 2021) and Evolving Work Challenges (January 2022). 

The world's evolution is not new. The pandemic is not the sole contributor to where we are today. However, the advent of technology and COVID-19 are a strange combination that is impacting us all. The changes being made today in response to present labor challenges will impact us, and the effects are likely to be long-term.  

In a period of short-term challenges, some people elect to make long-term life changes. When stress or emotions are running high, it is perhaps not the best time to make changes that are difficult to undo or to even remediate. However, it appears that American business is making some fundamental changes in response to the challenges of finding workers. Business Insider reported recently that Robot orders increase 40% in first quarter 2022 as desperate employers seek relief from labor shortages. 

A store I frequent has evolved from a "self-checkout" where each item is scanned and bagged. In this new paradigm. One now merely places items onto a platform, without any thought of where those bar codes are or what direction they are facing, and the sale is calculated. The machine takes cards, cash, and even allows a customer to log in for "loyalty." And, from my experience is doing so more rapidly than the competing employee down the counter - by a lot. 

The machine does not work by bar codes. That great innovation of the last century is not driving this next innovation. According to Forbes, this check out is run by artificial intelligence, and the machine is "looking" at the items you wish to purchase. You put them all on the platform simultaneously and the machine values them all at one time based on their appearance. To build the algorithm, the company visited a convenience store and

"took 20 to 40 pictures of every single item in the store,” says Jack Hogan, senior vice president at Mashgin about how they initially built a database of 20,0000 images to train their algorithm"

Will there be some math that allows government to support volumes of people who are not working, or at least not working at their capacity? See Universal Income (November 2016) and Let them Eat Brioche (September 2018). As the pandemic spread, and the money flowed, perhaps there was some degree of Universal Income, though the $5 trillion ($5,000,000,000,000) was not distributed universally by any means. The New York Times details where it went. That money entered the economy, and it was spent. Dollars chased commodity and products, and incredibly (or perhaps predictably) prices increase.  

I spoke with a clerk at that gas station with the new AI checkout. Specifically, I asked if there is any fear of being replaced. The reply? "there is plenty of other work, so who cares." I did not delve into whether that comfort is in more work elsewhere in that store (stocking, cleaning, etc.) or in the broader marketplace (everyone has help wanted signs up). But, either of those may themselves see the impact of these long-term robotic solutions. As technology permeates, the help wanted may conversely diminish. And where will the worker be? Who will have any funds with which to make a purchase?

The government debt has soared, suggesting that even the U.S. budget cannot expend without end. Some estimate that debt has at time reached close to 140% of the gross domestic product. In the new age of automation, when the workers have been replaced by the robots, how will people earn a living? How will they find a living, and will there be any way for the largesse of government to continue? Who will pay taxes and fund the government, and its programs and distributions? These are interesting questions, and certainly time will tell.  

I frequently drive past a business that has a large sign proclaiming it is "veteran owned." I suspect that there is an appeal there, and the business is frequented by those who are eager to support our veterans. Will the day come when similar signs proclaim "humans work here?" As the tech changes the workforce, what of workers' compensation generally? As the work that remains becomes relegated to fixing the machines, what of the working person? In that paradigm, without risks like lifting and carrying, will the severity and frequency of work injury consistently decline? As we compete increasingly in a world market, how will U.S. business eschewing robotics and AI compete? Certainly, time will tell. 

By Judge David Langham

Courtesy of Florida Workers' Comp