By Samuel Chase
Business is an ever-revolving cycle of highs and lows, peaks and troughs. It is what companies base their business models off of. The question they ask is, what is next? What is the direction for the company? What can be done next to improve the business model? Companies on a global scale often stick to the same business model once they have found success. With technology advancing at unprecedented rates companies are losing faith in their business models. CNBC investigated businesses in the UK and studies show, “A new report Wednesday found that 41 percent of British companies surveyed said their current business models will cease to exist in the next five years thanks to artificial intelligence (AI).” Out of the 5,000 businesses surveyed roughly 2,050 firms believe AI will affect them.
After diving further into this, employees are even thinking about the effects of AI, the research found 45 percent of employees are concerned their job could be taken by AI CNBC). This would not be an issue in the business world if companies can keep up with the rate technology is advancing. However, Clare Barclay, COO of Microsoft’s U.K., told CNBC, “Like any change, sometimes it’s easier to do nothing than something. Every business is going to be touched by AI.” Barclay’s words are more than just a statement. Of the 5,000 surveyed it also found 51 percent of the country’s business leaders surveyed do not have an AI strategy in place for their organizations. Businesses are claiming the effects of AI will be real yet have nothing set in stone for the future. They are worried about a legitimate change, but will not do anything to adjust. To make matters worse of the employees surveyed 51 percent are not learning skills to help prepare for changes in the workforce.
The notion however that AI is the doom of the labor force is myth. Yes, it will take jobs away, but as one door closes another opens. People still need to make the robots and ship the materials to produce them. This will cause a change in the type of labor force the UK has and the world as a whole. AI is no different than the assembly line or the textile mill. It’s been decades since these advancements have happened and everyone is still doing fine now. The world economy still has peaks and troughs, businesses still thrive and some go out of business. What is happening however is the market is changing on a global scale for the first time since the Great Depression.
People will continue to point fingers to try and find a problem in the growth of technology. What needs to be remembered is without technological growth this essay could not have been written, the Archway would not exist, or even the clothes on peoples’ backs would not be the same. It is not a matter of when AI advances in the work force it is a matter of what people will do next to grow with it.