The myth of full automation: the roboadvice case

Claas Ludwig

Recent developments in digital technology fuel the notion that we are at an inflection point in human history, where fully automated robots are on their way to permanently replacing humans at work. To better understand the dynamics between automation and the demand for human labour, I undertook a case study on financial advice robots – colloquially known as roboadvisors. For the roboadvice firms examined, I found that human involvement is still crucial. Full automation is thus a myth, at least for now, in this industry. But roboadvisors do demonstrate that some cognitive ‘non-routine’ tasks can be automated. Previously, ‘non-routine’ tasks had been widely considered as non-automatable. Roboadvisors demonstrate how the frontier of potential automation is not limited to menial, routine tasks.

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Tight labour markets and self-service beer: is the productivity slowdown about to reverse?

Will Holman and Tim Pike

Firms are increasingly investing in automation, substituting capital for labour, as workers become more scarce and costly. We are seeing multiple examples, from automation in food processing to increasingly-common self-service tills. This push for productivity growth is one of the key themes from our meetings with businesses in the past year, which we think suggests a reversal of a decade-long trend.

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