Case Study: Read Will Automation Steal Our Jobs...from page 437 of the textbook and answer questions 1 through 3 in paragraph form with supporting references from the textbook (Managing Information Systems: Managing the Digital Firm by Laudon & Laudon 17th edition 2022 ) and other academic sources. The paper should not be in a question-answer format. The paper should be a 3 to 5 page Word document in apa format with no less than three academic references. All papers will have a cover page, abstract, body, conclusion and reference pages. In text citation required (author name, year)

and onsumer bas 438 Part Three Key System Applications for the Digital Age A large body of economists and scholars remain need to do. And new tasks are likely to increase the more optimistic about automation. Erik Brynjolfsson, demand for labor as they have in the past century, Director of MIT's Initiative on the Digital Economy moderating job losses due to automation. and professor at MIT Sloan School of Management, agrees that wide-scale automation will produce some Sources: Rani Molla, "A Coronavirus Recession Will Mean More disruption over the next 5 to 10 years as automation Robots and Fewer Jobs," Vox, March 31, 2020; Paul Seymour, "White works its way through the economy. Collar, Blue Collar, New Collar: The Evolution of the American Workforce," Supply Chain Brain, January 17, 2020; William Brynjolfsson and his research team analyzed a Wilkes and Eduardo Porter, "Tech Is Splitting the U.S. Work Force U.S. Department of Labor dataset with descriptions in Two," New York Times, February 4, 2019, Christopher Mims for 964 occupations in the United States. Each job "This Thriving City and Many Others Could Soon Be Disrupted by Robots," Wall Street Journal, February 9, 2019; James Manyika consisted of 20 to 32 tasks. The team evaluated each and Michael Spence, "The False Choice Between Automation and job's skill set to determine which tasks could be per- Jobs," Harvard Business Review, February 5, 2018; David Autor and formed better using artificial intelligence (AI) tech- Anna Salomons, "Is Automation Labor-Displacing? Productivity nology and which were performed better by humans. Growth, Employment, and the Labor Share," BPEA Conference Drafts, March 8-9, 2018; Daron Acemoglu and Pascual Restrepo The study found that in occupation after occupation "Artificial, Intelligence, Automation, and Work," Working Paper there were many tasks that AI could perform better 24196. National Bureau of Economic Research, January 2018. than humans, but still plenty of tasks where humans Steve Lohr, "Robots Will Take Jobs, But Not as Fast as Some Fear," New York Times, January 12, 2017; and Michael Chui, James excelled over AI. Brynjolfsson predicted that most Manyika, and Mehdi Miremadi, "Where Machines Could Replace jobs in an organization will be partly affected by Humans-and Where They Can't (Yet)," Mckinsey Quarterly, July Al, but there will still be many tasks that humans 2016. CASE STUDY QUESTIONS 1. How does automating jobs pose an ethical dilemma? 3. If you were the owner of a factory deciding on Who are the stakeholders? Identify the options that whether to acquire robots to perform certain can be taken and the potential consequences of each. tasks, what management, organization, and tech 2. Does automation cause job loss? Explain your nology factors would you consider? answer. booubongChapter 11 Managing Knowledge and Artificial Intelligence 4 INTERACTIVE SESSION ORGANIZATIONS Will Automation Steal Our Jobs? The city of Lakeland in central Florida is home to more than 600,000 people, with many employment at corporations like Intel or AT&T and a sea of less opportunities at local distribution centers for Amazon, educated workers relegated to low-paying service- Walmart , Medline, and Publix as well as local factories sector jobs in hotels, restaurants, and nursing homes. producing natural and artificial flavors . Yet the good Much of this service work is difficult to automate times for Lakeland could rapidly end. A Brookings and employers have less incentive to replace low- Institution report based on data from the U.S. Census wage workers with machines. Recent research has Bureau and Mckinsey & Co. ranked Lakeland third found that robots and other forms of automation among metro areas that are most at risk of losing jobs are reducing the demand for workers, weighing due to the automation and artificial intelligence that down wages, and pushing workers into low-paying make its warehouses and factories so productive. parts of the economy. This trend may become more Automation is not the only cause of job losses. The pronounced if the coronovirus pandemic leads to National Bureau of Economic Research estimated a major recession: Researchers have found that that imports of manufactured goods from low-wage economic downturns actually bring about increased countries accounted for nearly half of the 5 million levels of automation because human workers in this job losses in manufacturing over the last 15 years. environment are often more expensive than job- replacing technology. The other half of job losses in manufacturing came There is a long-standing belief among economists from increases in productivity due to investments in that by reducing prices and improving quality, tech- technology, primarily involving information technol- nology would raise demand, which would require ogy. This continues a long-term historical pattern of more jobs, and more productive workers would have technology leading to higher productivity, and job higher incomes. Now some economists are not so losses. But the increases in productivity have also led sure. MIT labor economist David Autor and Anna to job expansion in other sectors that offset manufac Salomons of Utrecht University found that over the turing losses. last forty years, the number of jobs has declined in A November 2015 Mckinsey Global Institute re- many industries that introduced technology to en- port by Michael Chui, James Manyika, and Mehdi hance productivity. The only reason unemployment Miremadi examined 2,000 distinct types of work ac- did not rise across the entire economy was because tivities in 800 occupations. The authors found that industries with less productivity growth and more 45 percent of these work activities could be auto- low-paying jobs picked up the slack. mated by 2055 using technologies that currently Manufacturing jobs have been the hardest hit exist. About 51 percent of the work activities by robots and automation. According to a study by Americans perform involve predictable and routine economists Daron Acemoglu of MIT and Pascual physical work, data collection, and data processing. Restrepo of Boston University, for every robot per All of these tasks are ripe for some degree of automa- thousand workers, up to six workers lost their jobs tion. No one knows exactly how many U.S. jobs will and wages fell as much as 0.75 percent. Acemoglu be lost or how soon, but the researchers estimate and Restrepo found little employment increase in that from 9 to 47 percent of jobs could eventually be other occupations to offset job losses in manufacture affected and perhaps 5 percent of jobs eliminated en- ing. Acemoglu and Restrepo noted that a specific tirely. These changes shouldn't lead to mass unem- local economy, such as Detroit, could be especially ployment because automation could increase global hard-hit, although nationally the effects of robots are productivity by 0.8 percent to 1.4 percent annually smaller because jobs were created in other places The new jobs created by technology are not neces over the next 50 years and create many new jobs. sarily in the places losing jobs, such as the Rust Belt. Unfortunately, the effects of automation are not Those forced out of a job by robots generally do not equally distributed. Automation is splitting the U.S. have the skills or mobility to assume the new jobs labor force into two worlds-a small elite group of highly educated professionals earning high salaries created by automation