Question

Does the “New Economy” derived from the pervasive use of digital technology/artificial intelligence/ machine learning in industries, spell higher unemployment?

Answer 1

There has been a revolution in the economy with the advent of technologies like digital technology, artificial intelligence, machine learning paving way to new economy.

It is true that with these new technologies there is a threat to so many jobs( like automation jobs etc.). It looks like it leads to huge unemployment conditions. But with the encroachment of new technologies in our economy, brings the new variety of jobs. It is for the governments to focus on the Human Capital (through skill development, training, capacity building etc.) so that the unemployed can achieve skills to take up the new variety of jobs in the new economy. There may be a higher unemployment on temporary basis but by correct intervention of the government this problem can be solved and these new technologies brings a tremendous amount of new jobs, it is for us to equip well so that we match the requirement of these jobs.

Example: When computers were introduced, there was great protest against it that these computer will take away their jobs. But if you see these computers had creates a vast number of jobs thus creating huge employment opportunities. Similarly the new technology such as digital technology, artificial intelligence, machine learning etc, may be threat to some jobs but it creates a huge employment opportunities in future.