How Robots and AI Will Transform the Economy

Image by Jonny Lindner from Pixabay

If you have seen the popular TV series “Black Mirror,” you will have an idea of how the technology around us is changing rapidly. As the wave of automation is taking over businesses, it is high time to take a look at how technology will transform the economy. The International Federation of Robotics expects that the use of robots will increase by almost 250,000 units by 2020. These robots will be programmed to perform a variety of activities; whether it is 3D-printed buildings, autonomous vehicles, or designing jeans. 

Transforming economy

It appears that the world is headed toward a future where emerging economies are getting ahead of the so-called richer countries. This is because of their adaptability to the changing technology and how the country wants to use it for the people’s benefit. 

A prime example is the introduction of fire-fighting unmanned robots or the bomb-defusing robots – these products from A2Z Advanced Solutions LTD are meant to help military forces to safety combat terrorists. Bentsur Joseph, the CEO of the company, believes that since technology will determine the economic success of a country, everyone should start using these products and also come up with innovative items using robotics, AI, and machine learning. 

Some countries are already adopting robotics and AI in their daily life. For example, Kenya is into phone-based finance. This allows entrepreneurs to track their income and expenses without having to employ a team of accountants. Not only does it save the overhead costs, but the company also doesn’t have to allow extra space for a new team. This ultimately leads to higher cost savings. 

Beijing, on the other hand, has already started driverless subway lines. Experts also believe that robots will soon partially replace academics and researchers because they will have countless resources for research and development. That’s why many companies are rapidly shifting towards the use of machine learning and artificial intelligence because they don’t want to hire people for their RnD team.

What the economists say

Economists think that automation will help to improve the standard of living. And, when the standard of living improves in a country, it automatically proves that the nation’s economy is on the rise. It leads to lower crime rates, lower unemployment, and increases the average lifespan of people. At the rate at which the population is growing in this world, it will soon become impossible for human labor to tackle the massive demand for products and services. Moreover, companies will notice a dip in their profit levels. With increased demand, the company will have to employ more people, and that will increase the overall expenditure.

Since population control is challenging, it is best for countries to adopt newer technologies in the form of AI and robotics to handle such increased demands. It will be a win-win situation for companies and consumers. On the one hand, it will lower the overhead costs, and on the other hand, it will increase productivity. The countries that invest in robotics will benefit because of the increased profits of most of the companies that have turned their attention to robots and AI for the improvement in the economy.

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