Recently, we explored the impact automation and robotics are having on the operation of warehouses. Such automation across the entire spectrum of the world’s economy will, over time, be both a threat and an opportunity for small businesses. Some of today’s small businesses will be threatened by new technology, while others will incorporate new automation approaches to help their businesses become more efficient and profitable.
In a recent post on McKinsey.com, James Manyika, Michael Chui, and Mehdi Miremadi provided an overview of their research into 2,000-plus work activities in every industry sector across the U.S economy. Here are some findings from their research, highlighting the types of occupations most, and least, likely to go to a machine.
Just because something can be automated doesn’t mean it will be
Replacing human cooks earning $10 per hour with expensive robots may be possible technically, but might not make business sense because it may cost too much and not provide a good return on investment.
Certain physical jobs have the highest potential to be automated
5% | Occupations that could be fully automated by adapting current technology.
45% | Percentage of the activities people are paid to perform across all occupations that today’s technologies could automate
60% | Percentage of all occupations that could see 30% or more of their work activities automated
Data collection and processing are ripe for automation
Across all occupations in the US economy, workers spend one-third of their time collecting and processing data. Both activities are highly likely to be automated and could affect industries, from retail to financial services and insurance.
90% | Percentage of their time that mortgage brokers spend processing applications
30% | Percentage of the time spent processing data by people making over $200,000 per year
Robots aren’t great at making beds (yet)
For now, activities that require physical movement or operating machinery in unpredictable settings are relatively challenging to automate. In other words, don’t look for robots doing things like:
- Self-operating a crane on a construction site
- Collecting trash in public areas
- Making beds in hotel rooms
Robots aren’t great managers or creative directors
The hardest activities to automate with technologies available today are those that involve managing and developing people. Reasons: Experience and age are often an asset and the activities can be as varied as coding software, creating menus, writing promotional materials — or advising customers which color shoes best suit them.
Potential percentage of these jobs that could be automated
9% | Decision-making or planning
18% | Creative work
20% | Interaction with customers, suppliers and other stakeholders
>30% | Registered nurse’s responsibilities
13% | Dental hygienist’s responsibilities
Don’t look for robots at the front of the classroom anytime soon
According to the McKinsey analysis, “Of all the sectors we have examined, among the least susceptible to automation is education. The essence of teaching includes deep expertise and complex interactions with other people for which machines, so far and with few exceptions, receive an incomplete grade.”
Machines will change the nature of jobs, but they won’t fully take over from humans
Automation is best analyzed by looking not at occupations as a whole, but at the amount of time spent on individual activities. Some of those individual activities could be automated by using technology that currently exists. But the job that needs to be managed will still be carried out by humans.
Automation will fundamentally change the nature of organizations
Most benefits may come not from reducing labor costs but from raising productivity through fewer errors, higher output, and improved quality, safety, and speed.
Graphic from McKinsey.com (Click for larger view)
