Automate, Disrupt, and Profit

Abstract

Few doubt that automation and artificial intelligence will change business and society in the future. Questions arise, however, regarding the motivations associated with such expensive corporation expenditures and the related ethics of the disruption and unemployment that may result from corporation development and installation of sophisticated technology. This study analyzes financial statement data of 100 large public corporations to understand those motivations and their consequences for corporation profitability and employees. The study results indicate that a more automated future may be profitable for corporations and their shareholders, but one of the costs of that future is significant disruption to employees. While some new positions may be created as a result of this technology, many employees will suffer disruption and will need extensive training to maintain employment in an evolving workplace. Many other employees will lose their jobs because the tasks that they once performed will be automated. The related ethics to business and society are profound.