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>> Recently, Microsoft launched a new book,
The Future Computed: AI and Manufacturing,
which provides an in-depth look at how
Artificial Intelligence is transforming manufacturing.
Here to talk more about this is Greg Shaw and Nick Tsilas.
Greg, one thing we hear over and over to a certain extent,
it's a very legitimate concern about AI taking jobs away.
I say to a certain extent because what's going to
happen is the profile of the workforce,
there is a lot of change to happen.
But let's perhaps go
back to what the World Economic Forum says about AI and
automation will create a 133 million new jobs
while it eliminates 75 million jobs.
So it is a major change.
It's an important point,
but we have to demystify this whole thing about the workforce.
Well, what is your perspective?
>> Yeah. Well, the history of industry,
the history of manufacturing is full of change.
I mean, and the workforce
of the 1890s is very different from the workforce of the 1920s,
the '50s, the '70s, and so forth.
That has always been a path toward greater efficiency,
lower costs of maintenance,
and that has required new and different jobs.
But I think there is in the voices of those that I spoke with,
there is great optimism between corporate training programs,
apprenticeship programs, Europe has shown
the way with apprenticeship programs.
In the United States,
some of the community colleges that are throughout
the US are very attuned what these future jobs will be.
>> Yeah. I will say the reskilling of the workforce,
equipping them about technology skills
so that they can do their jobs better.
Plus, there is the underserved employee,
mostly under what we call first-line, frontline,
that do not use technology
and very underserved from a technology standpoint,
skilling those with technology skills
and that will bring up the next level of efficiency,
the visibility, and optimization.
>> In these frontline workers,
one of the things that was so exciting was to talk
to your customers who are using HoloLens in particular.
On those frontlines, which
is as the machinery and as the technology advances,
what HoloLens is able to do
is to give that frontline worker the instructions,
the support that they need.
So they're training on the job thanks to augmented reality.
>> They love being invested,
and there is an emotional part to it too.
So at the end of the day,
there is a major skills gap in manufacturing.
I think that needs to be addressed quickly.
There is an outflow of talent,
but there is not enough inflow of talent,
and I think that's where this
reskilling using technology for
more efficiency that comes into the picture.
>> I think there's another element that's worth noting,
that there is actually a shortage of
workers in manufacturing today.
So there's a shortage of millions of
workers in the industry today in the US.
So as we start using these new technologies,
hopefully we are attracting these younger students
and attracting more workers to this specific industry.
>> That's such an important point Nick,
because one of the reasons why we do not
have enough inflow into talent in manufacturing,
is that they don't see,
the young generation doesn't see this as
an attractive industry, whereas if you provide them with
technology skills, that they will find how they live
their personal lives and it becomes very interesting,
and then they'll feel empowered.
>> Just one interesting point on that.
When we talk about manufacturing,
I think we tend to think of these large manufacturers,
but Microsoft is supporting really small manufacturers,
medium-sized manufacturers, and really large ones.
One of the things that was fun in my research was
just seeing millennials and
other young groups who are in
the DIY movement or working out of
their garage manufacturing something,
and beginning to use machine learning
and AI is part of that.
>> That is such an important point because Microsoft at
the end of the day is in the business of democratizing technology,
and what we're talking about is
democratizing AI for the masses, for everyone.
Nick, regulations. I mean,
we know AI has the potential to drive new jobs,
new skillsets, economic growth,
but are the right policies in place?
How can we make sure technology is put to the right use, to good use?
What are the concerns about
wider regulatory and compliance issues
such as privacy when it comes to AI?
>> Privacy is a good one, Çağlayan.
Think about it like this,
every stage of the manufacturing process
involves humans in one way or another.
Just as humans are part of every stage of manufacturing,
data is needed at every stage of an AI solution in manufacturing.
AI systems used during the manufacturing process may directly
or indirectly capture personal data about people on the work floor.
So for example, AI solutions designed to measure the efficiency
and proper functioning of equipment may yield
information about individual employees' efficiency,
performance, or even personal data.
So an AI solution for example that includes
a microphone functionality to
monitor ambient noise or to take commands,
may inadvertently capture employees conversation.
So yes, privacy becomes an issue.
It's important that employers carefully consider
the potential privacy impacts on employees.
They need to make sure that use of these systems comply with
employment laws and privacy laws such as the EU GDPR.
Engaging stakeholders,
other stakeholders such as employees representatives,
unions will also be important to socialize these new technologies,
these new concepts, and to encourage uptake, and address concerns.
>> Where do you think Nick,
the government needs
to focus in terms of democratizing AI across
the economy but making sure that
the frameworks and regulations are in place?
>> You know, the book was very instructive in that way.
Two specific themes came to mind that came from the book.
The first is really enabling
a multi-stakeholder collaboration to
developing regulation in the AI Space.
What we heard is it's important to ensure a whole-of-
industry perspective and a balanced approach to AI regulation.
One that encourages the development of
responsible AI while not foreclosing opportunities.
The second theme that came out is building
AI capacity and an AI ready workforce.
We've already covered this a little bit,
but really there's a sense of urgency from
policymakers and manufacturers alike,
to expand educational opportunities and reskill their workforce.
This isn't just their workforce on the factory floor.
This is their business leaders as well.
>> How do you think of Microsoft's role in all of this?
>> Microsoft has listened carefully to a
diverse group of stakeholders in
manufacturing from workers on the factory floor to the C-suite,
from labor unions, to academics,
to industry advocacy groups.
What we've heard from these conversations is a sense of
shared responsibility to create
trusted responsible and inclusive AI systems.
We've learned that it's time to work together to reach
a consensus about principles and values,
and how these principles and values should
govern AI in manufacturing.
We've learned that these values need to reflect the experiences of
organizations that are using
AI solutions and deploying AI solutions today.
We know that designing trustworthy AI
requires solutions based on ethical principles,
and principles that are deeply rooted
in important timeless values.
We've proposed six principles that we think will assist in
guiding the ethical development and deployment of AI.
But look, principles and best practices are
important safeguards in the absence of laws and regulations.
It's increasingly becoming clear that
more formal policy development is also needed.
It's needed to help create the right environment
for responsible innovation in manufacturing.
As evidenced by the work in the book,
your interviews, our experiences with customers every day.
Microsoft wants to enable and be a part of these conversations.
After all, we're a manufacturer as well.
We want to work alongside policymakers,
or customers, labor unions, workers.
We'd like to help develop
a regulatory framework that fosters confidence in AI,
ensures equitable access to AI and data,
and promotes collaborative approaches to the creation of
new laws and new standards that
balanced responsibility in innovation.
>> Okay. Let me add one point.
I think it's important to underscore
the very first point that you made about
this collaboration between multiple stakeholders.
>> Yeah.
>> One of the things that very clearly came through in
my interviews is a worry
that government might move in too quickly and overreach,
and that government leaders do need to collaborate with
industry in order to really
understand how AI is being developed and how it's being used.
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