ETFOptimize | High-performance ETF-based Investment Strategies

Quantitative strategies, Wall Street-caliber research, and insightful market analysis since 1998.


ETFOptimize | HOME
Close Window

AI threatens blue-collar jobs, too

Generative AI tools have been seen as a significant threat to many white-collar jobs for the past year, but blue-collar workers in manufacturing are at risk, too.

Generative artificial intelligence (Gen AI) is sweeping across industries, and while it is seen as a great threat to many white-collar jobs, the technology's rapid advance in the manufacturing industry shows blue-collar workers are at risk of being replaced, too.

Ed Watal, the founder and principal of IT strategy firm Intellibus, says AI is rapidly accelerating the fourth industrial revolution, and manufacturing is already being transformed through automation, predictive maintenance and quality control that is changing operations.

Watal notes that over the past several years, smart transport robots (STRs) and automated guided vehicles (AGVs) in warehouses and factories have already started eliminating tasks like operating forklifts, but the advent of Gen AI means technology can handle other, more complex operations that are currently handled by humans.

WHAT IS ARTIFICIAL INTELLIGENCE (AI)?

Gen AI models can act as a "digital twin" for a production line or plant, he says, and can be used in production or simply to run simulations without the need for shutting down a line or operating an expensive pilot plant.

"As Gen AI gets applied to computer vision and becomes more multi-modal, allowing people to upload an image or video and ask questions about it, more blue-collar jobs will be at risk," Watal told FOX Business

"Such capabilities will drastically reduce the need for multiple ‘experienced’ workers, as their knowledge and expertise gets captured in their ‘digital supervisor twin’," he said. "A single digital supervisor twin may be able to support all maintenance or quality engineers for a given production line or factory."

AMAZON WEB SERVICES CEO SAYS AI WILL ‘BE USED FOR TREMENDOUS GOOD’

While this shift due to Gen AI will significantly impact white-collar and knowledge-worker jobs in manufacturing, blue-collar jobs and physical-labor jobs will also be affected. 

"AI-powered quality tools today can already deliver ongoing monitoring, generate alerts for issues and use them to make changes that would optimize production yield, significantly reducing the need for multiple quality assurance jobs," Watal added.

He pointed to a Goldman Sachs analysis from earlier this year that indicated advancements in Gen AI could expose up to 300,000 million jobs at risk worldwide due to automation, and says manufacturing firms have already become early AI adopters.

On the flip side, AI can also be thought of as a tool that enables bridging the gap due to the country's ongoing labor shortage, according to Watal. He cited the National Association of Manufacturer's most recent quarterly survey that shows 72% of manufacturers said their top primary challenge was the inability to attract and retain employees.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Watal said that as more labor unions representing blue-collar workers become aware of the impact of AI, the technology will increasingly become a sticking point in contract negotiations, just as it was in this year's Hollywood actors and writers strikes.

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.


 

IntelligentValue Home
Close Window

DISCLAIMER

All content herein is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor should it be interpreted as a recommendation to buy, hold or sell (short or otherwise) any security.  All opinions, analyses, and information included herein are based on sources believed to be reliable, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. We undertake no obligation to update such opinions, analysis or information. You should independently verify all information contained on this website. Some information is based on analysis of past performance or hypothetical performance results, which have inherent limitations. We make no representation that any particular equity or strategy will or is likely to achieve profits or losses similar to those shown. Shareholders, employees, writers, contractors, and affiliates associated with ETFOptimize.com may have ownership positions in the securities that are mentioned. If you are not sure if ETFs, algorithmic investing, or a particular investment is right for you, you are urged to consult with a Registered Investment Advisor (RIA). Neither this website nor anyone associated with producing its content are Registered Investment Advisors, and no attempt is made herein to substitute for personalized, professional investment advice. Neither ETFOptimize.com, Global Alpha Investments, Inc., nor its employees, service providers, associates, or affiliates are responsible for any investment losses you may incur as a result of using the information provided herein. Remember that past investment returns may not be indicative of future returns.

Copyright © 1998-2017 ETFOptimize.com, a publication of Optimized Investments, Inc. All rights reserved.