Tech & future of jobs: Time to incentivise human capital

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The rise of Artificial Intelligence (AI) and Machine Learning (ML) has already started to impact the jobs market. How do these changes matter to us, and specifically how do they impact entrepreneurs? 

Twenty years ago, there was no Google. The founder of the world’s largest social media network Mark Zuckerberg was a 13-year-old teenager, probably trying to find his bearings between being a Bar Mitzvah and a prodigy in middle school. While Elon Musk, at 26, was already on his way to making millions that would set him up to dream bigger.

The fact that so much has changed in the last 20 years primarily due to technology is not lost on anyone. New job descriptions like social media managers, data analysts, app developers, why even ‘fun managers’, indicate how much faster this change has occurred than the industrial revolution.

The ABC of new-age jobs.

“Back in 2006, there was no need for social media managers as most platforms had yet to be created. Today, Facebook has more than 1.5 billion users worldwide and, alongside other platforms such as Twitter and Instagram, has become an indispensable marketing tool with which brands can engage with consumers,” states a World Economic Forum (WEF) article titled: ‘10 jobs that didn’t exist 10 years ago.’

New ideas, new jobs

The kind of jobs that exist now was unheard of even a decade ago. The WEF article states,

“One estimate suggests that 65 percent of children entering primary school today will ultimately end up working in completely new job types that aren’t on our radar yet.”

That’s the good news. Now for the bad.

Though technology has reshaped the workplace over the past two centuries, “the speed with which automation technologies are developing today, and the scale at which they could disrupt the world of work, are largely without precedent.”

The rise of Artificial Intelligence (AI) and Machine Learning (ML) has already started to impact the employment market.

According to a 2017 McKinsey Global Institute (MGI) report, “On a global scale, the adaptation of currently demonstrated automation technologies could affect 50 percent of the world economy, or 1.2 billion employees and $14.6 trillion in wages. Just four countries — China, India, Japan, and the United States — account for just over half of these totals.”

How do these changes matter to us, and specifically how do they impact entrepreneurs? What sort of socio-economic changes will it have? At the recently-concluded TechSparks event, investor and mentor Sanjay Anandaram set the stage for a lively discussion on tech and the future of jobs.

Need to create more jobs

India is a young country where 65 percent of the population is less than 35 years of age. “We need to create 100 million jobs. Tech and automation are likely to cause a huge disruption in the country,” Sanjay stated.

Fielding his questions were Editorial Director of Swarajya R Jagannathan, Chairman of Aarin Capital Partners Mohandas Pai, Partner at Trilegal Rahul Matthan, and VP Market Head New Economy Group at Axis Bank Sameer Garg.