Digital Transformation and Labor Market: How Much Do We Know?
The pandemic made digital transformation a necessary practice to preserve and future-proof the business operation. While it is an extension of the ongoing transition with IT and computer technologies, digital transformation and industry 4.0 are fundamentally different in that it is based on the utilization of vast quantities of data for more flexible production. Critically, recent advances in Machine Learning and Deep Learning in AI using ubiquitous massive data via mobile interface are remarkable, accelerating the pace of automation of cognitive tasks with high accuracy, which previously required high-skilled workers. While we still live very far from artificial general intelligence, there is no doubt that the effect on the labor market would be profound. To buffer the expected job loss, proper job training and education by businesses as well as the government are necessary, focusing on areas in which humans hold comparative advantages. In addition, research on automation and robotics in the past few decades may shed light on policy directions we must take.
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