“It is people, not capital or raw materials that develop an economy.” – Peter Drucker

A few years ago, lamplighters were a common sight on the streets. But today they rarely exist. Electricity has made them extinct. Lamplighters are not the only people whose jobs have been replaced by technology. Over the years, technological advancements have made many things insignificant. But did technology lead to unemployment? No! It has rather generated employment.

Then why are there rising concerns about the newest technological breakthrough- the AI revolution making humans insignificant at the workplace? Sure, AI will take over some of the tasks performed by humans, but won’t it make room for new roles? Like any other innovation? Then why are tech giants laying people off in large numbers every passing day? This is largely due to the fact that corporates are in a constant endeavour to leverage every situation to their advantage irrespective of the impact it will have on other individuals.

The Transition of the Economy from Physical to Skill-Based to Brain-Based Labour

The first and second industrial revolutions were all about physical labour. They were concerned with mass production and increasing the profit margins. It was the time when people worked to earn a livelihood. Sustenance was the sole goal behind working.

But after the arrival of Industry 3.0, the world moved towards a skill-based economy. Computers started to take over the world and industries moved towards automation. This was a time when being employed was no longer enough. People started to look for a better standard of living. Minimal wages were no longer enough.

Today, Industry 4.0 is pretty much here. The advent of the AI revolution is once again changing the way we look at work. In the past month itself, more than 2,000 AI tools were released. Because of these innovative tools, industries no longer require humans to do the jobs, they can easily be taken care of by the machines. The world is transitioning towards a brain-based economy. Today, it is no longer enough to merely possess the requisite skill set. Businesses require employees to be well-adept individuals who can quickly adapt to changes and acquire new skill sets. Thus, employees are looking for organisations that provide them with regular upskilling opportunities, a conducive work environment and a better quality of life.

Technology is Not the Enemy

As AI continues to advance, there have been rising concerns about machines replacing humans completely. But we need to understand one thing here. Technology is not the enemy. Machines are meant to make human jobs easy, not insignificant. For instance, if we talk about ChatGPT, the latest craze in the world, it can really help content writers to cut down on research or come up with a basic layout for their blogs/ articles. Therefore, we need to keep one thing in mind whenever we engage in debates about technology making our jobs irrelevant- technology is here to help.

The need of the hour is to oversee and regulate technological advancements but these regulations should necessarily be pragmatic in nature and not based upon the myths of inhuman technologies and sinful profits. We must focus on equipping the present and future workforce to adapt to the changing needs of corporations to stay relevant. This calls for some reforms in the education sector.

Need to Reshape Education

As Jeffery R. Brown rightly said, it is no longer enough to earn a college degree to stay relevant in the 21st-century workspace. The need is to revamp the education system and make it less structured such that it allows working professionals to continue learning throughout their lives. This is because as new transformations continue to occur in the AI sector, the nature of jobs is also changing.

Existing jobs are becoming antiquated and newer jobs are emerging on a daily basis in the brain economy. It is hard for the workforce to keep up with the pace of innovation. Because how do you prepare someone for jobs that don’t even exist yet? This calls for making education more technology-driven.

Today it is as important for students to have a clear understanding of technology as knowing how to create an Excel sheet. Thus, both students and teachers need to be supplied with adequate technological know-how. Furthermore, there is a dire need to promote multidisciplinary and interdisciplinary learning as nothing alone can work today. Departments are becoming increasingly interdependent. Thus, there should be an emphasis on establishing multidisciplinary universities that provide students with opportunities for innovative and technology-based learning.

Businesses Must Meet Employees Halfway

While employees make the effort to equip themselves with various technical skills and fundamental knowledge, businesses must make sure that they cater to the needs of the brain economy employees. Their concerns majorly revolve around the issues of how the company is contributing towards promoting sustainable practices, and what is the company’s take on social issues such as gender parity, wealth sharing, etc.

Furthermore, the new segment of employees is also looking for learning opportunities at the workplace. Therefore, corporations must make sure that they offer skill-enhancement and leadership-development programmes to employees. To sum it up, businesses are no longer limited to business functions. They need to be active change-makers and innovators who are bringing positive change in society.

Takeaway

As the relationship between capital and labour continues to change, there is a need to bring change in every sector of the economy. Whether it is education, corporates, or employees, everyone has to bear the responsibility to match the accelerating pace of technological advancements and adapt accordingly in order to stay relevant in the brain economy.