>>> GLOBAL LEADERS AND EXPERTS CAME TOGETHER IN DAVOS LAST WEEK
FOR THE WORLD ECONOMIC FORUM
I WAS FORTUNATE TO BE THERE.
ONE OF MOST DISCUSSED TOPICS,
ARTIFICIAL INTELLIGENCE AND THE
AUTOMATED WORKFORCE.
AUTOMATED WORKFORCE. ACCORDING TO "THE NEW YORK
TIMES," QUOTE, MANY EXECUTIVES
WRING THEIR HANDS OVER THE
NEGATIVE CONSEQUENCES THAT
ARTIFICIAL INTELLIGENCE AND
AUTOMATION COULD HAVE FOR
WORKERS BUT IN PRIVATE, THEY’RE
RACING TO AUTOMATE THEIR OWN
WORKFORCE TO STAY AHEAD OF
COMPETITION WITH LITTLE REGARD
FOR THE IMPACT ON WORKERS.
JOINING ME NOW, "NEW YORK TIMES"
BUSINESS COLUMNIST KEVIN RUSE.
I AGREE WITH IT WHOLEHEARTEDLY,
BUT HERE’S THE ISSUE, AS A CEO
OF A PUBLICLY TRADED COMPANY,
YOUR JOB AS A FIDUCIARY IS TO
OPTIMIZE RETURN FOR
SHAREHOLDERS
SHAREHOLDERS SO TO THE BEST OF MY
UNDERSTANDING, THAT MEANS
AUTOMATION
AUTOMATION NOT DO YOU SUPPORT YOUR TOWN OR
DISPLACED WORKERS.
DISPLACED WORKERS. AND THAT MIGHT BE TERRIBLE FROM
A SOCIAL OR EMOTIONAL OR
FUNDAMENTAL STANDPOINT BUT AS
FAR AS WHAT THOSE CEO’S JOBS
ARE, THEY’RE DOING IT.
AUTOMATION IS THE FUTURE.
>> IT GOES BACK TO THIS SORT OF
QUESTION THAT HENRY FORD
ADDRESSED BACK IN THE EARLY DAYS
OF FORD.
OF FORD. WHICH IS IF HE’S NOT PAYING HIS
WORKERS, THERE’S NO ONE TO BUY
THE CARS
THE CARS I THINK THAT’S REALLY WHERE
WE’RE HEADED WITH AUTOMATION
IF THESE COMPANIES ARE PUTTING
THOUSANDS OF HUNDREDS OF
THOUSANDS OF PEOPLE OUT OF WORK
THROUGH AUTOMATION, WHO’S GOING
TO BE LEFT TO BUY THEIR
PRODUCTS
PRODUCTS >> YES, BUT WHAT YOU’RE TALKING
ABOUT ARE LONG-TERM ISSUES
IF YOU’RE THE CEO OF A COMPANY
AND YOU HAVE QUARTERLY REPORTS
AND ANALYSTS BANGING DOWN YOUR
DOOR, THEY WANT TO KNOW WHAT
YOU’RE RETURNING TODAY
THEY’RE NOT THINKING WHO’S GOING
TO BUY A CAR IN 7 OR 14 YEARS.
I LEARNED LAST WEEK WHEN GOLDMAN
FIRST PROPOSED TO DO THEIR
10,000 WOMEN EFFORT, THEIR SHARE
SHOULDERS SAID, WHAT, ARE YOU
KID MEG?
KID MEG? WE’LL DECIDE WHAT GOOD WE WANT
TO DO.
TO DO. YOU RETURN TO US
SO GIVEN WHAT THE INCENTIVES ARE
AND YES, THEY’RE PERVERSE, ISN’T
THIS A SITUATION OF HATE THE
GAME, NOT THE PLAYER
THE PLAYERS ARE THESE CEOs WHO
ARE OPTIMIZING THEIR BUSINESSES.
>> THE LANGUAGE OF INEVITABLY
WAS THERE.
WAS THERE. TALKING ABOUT AUTOMATION LIKE
IT’S JUST THIS THING THAT’S
GOING TO HAPPEN AND THEY HAVE NO
CHOICE OVER THE MATTER
SO THEY’RE ABSOLUTELY SALIVATING
ABOUT THE PROSPECT OF USING AI
AND MACHINE LEARNING TO CUT THE
SIZE OF THEIR WORKFORCES
I HAD ONE CONSULTANT TELL ME
THAT CEOs ARE NOT ASKING HIM IF
THEY CAN AUTOMATE 98% OF THEIR
WORKERS AWAY
WORKERS AWAY CAN THEY DO THE SAME AMOUNT OF
WORK WITH 1% OF THE HUMAN
WORKERS.
WORKERS. >> ARE THEY ACKNOWLEDGING WHOSE
JOB IS IT TO SERVE THOSE WORKERS
WHO LOSE THEIR JOB, RIGHT?
IF SOMEBODY WHO LOSES THEIR JOB
IN A FACTORY IS NOT ABOUT TO
BECOME A SOCIAL MEDIA
CONSULTANT
CONSULTANT WHO’S RESPONSIBLE FOR IT
>> WELL, RIGHT NOW, IT SEEMS
LIKE NO ONE IS RESPONSIBLE FOR
IT.
IT. >> AND WE’VE BEEN SAYING THIS
FOR YEARS.
FOR YEARS. >> TOTALLY
>> TOTALLY THE CEOs TALK ABOUT WHAT THEY
CALL RESKILLING.
CALL RESKILLING. TEACHING THEM TO DO SOMETHING
ELSE
ELSE SO FAR THE CEOs ARE NOT PUTTING
THEIR MONEY WHERE THEIR MOUTH IS
ON THIS.
ON THIS. ONLY A HANDFUL OF COMPANIES --
>> BUT EVEN THOSE WHO ARE DOING
IT, IT’S SITTING IN THEIR
CORPORATE SOCIAL RESPONSIBILITY
VERTICAL
VERTICAL IT’S NOT SITTING IN THEIR CORE
BUSINESS UNIT.
BUSINESS UNIT. SO IT’S LIKE PUTTING ICING ON
ICING ON ICING ON TOP OF THE
CAKE THEY CAN THEN TAKE AWAY.
>> ABSOLUTELY.
>> ABSOLUTELY. I THINK WE NEED TO SORT OF MAKE
IT CLEAR TO CEOs THAT THERE WILL
BE REAL HUMAN TOLL AND BACKLASH.
AND THIS IS WHY THEY DON’T TALK
ABOUT THIS --
>> THERE WILL BE REAL HUMAN TOLL
OF ALL THOSE PEOPLE WHO LOSE
THEIR JOBS BUT WHAT WILL THE
ACTUAL BACKLASH BE
>> YOU CAN SEE IT KIND OF
STARTING
STARTING THIS IS NOT HYPOTHETICAL
WE’RE ALREADY SEEING COMPANIES
DISPLACE WORKERS BECAUSE OF
AUTOMATION
AUTOMATION AND WHAT’S REALLY INTERESTING
IS --
IS -- >> WHAT’S THE BACKLASH FOR THE
WORKERS?
WORKERS? >> I THINK THEY HAVE OPTIONS
I MEAN, SOME OF THESE ARE
UNIONIZED INDUSTRIES
UNIONIZED INDUSTRIES THE MISTAKE IS THINKING ABOUT
AUTOMATION AS A BLUE COLLAR
PROGRAM IN FACTORIES
THIS IS HAPPENING IN LAW
IN FINANCE
IN FINANCE IN HEALTH CARE
WE HAVE ARTIFICIAL INTELLIGENCE
ALGORITHMS THAT CAN DIAGNOSE
TUMORS AND OTHER ABNORMALITIES
THAN --
THAN -- >> OTHER DOCTORS, RADIOLOGISTS,
YES.
YES. >> THIS IS NOT SOME HYPOTHETICAL
PROBLEM.
PROBLEM. THIS IS GOING TO HAPPEN ACROSS
INDUSTRIES
INDUSTRIES I HATE TO TELL YOU BUT IN CHINA
THEY’RE ALREADY USING AI NEWS
ANCHORS TO PRESENT THE NEWS ON
THEIR EVENING NEWS BROADCASTS.
>> KEVIN RU SE, PUT MEG OUTTING
OF WORK.
OF WORK. TELLING ME A RADIOLOGIST COUSIN