Will the fourth industrial revolution destroy or create jobs?

The impact of the fourth industrial revolution on jobs has been much discussed.

On one side, there are the traditional economists, who argue that technological advances have always created more and better jobs than the ones they destroyed. On the other side, the people that believe that with the arrival of artificial intelligence and robotics, there will simply not exist enough jobs that cannot be done by machines.

So, in this post, I try to present a balanced analysis on the subject, as deeply as allowed by the space and time available.

Many studies have addressed the question of which jobs are more likely to be destroyed by automation.  This study, by McKinsey, provides a very comprehensive analysis.


Recently, The Economist also published a fairly balanced analysis of the topic, already posted in this blog. In this analysis, The Economist makes a reference to a number of studies on the jobs that are at high risk but, in the end, it sides with the opinion that enough jobs will be created to replace the ones technology will destroy.

A number of books and articles have been written on the topic, including “Raising the Floor“, “The Wealth of Humans: Work, Power, and Status in the Twenty-first Century“, “The Second Machine Age“, and “No More Work“, some of them already reviewed in this blog.

In most cases, the authors of these books advocate the need for significant changes in the way society is organized, and on the types of social contracts that need to be drawn. Guaranteeing every one a universal basic income is a proposal that has become very popular, as a way to address the question of how humanity will live in a time when there are much less jobs to go around.

Further evidence that some deep change is in the cards is provided by data that shows that, with the begining of the XXI century, income is being moved away from jobs (and workers) towards capital (and large companies):


On the other side of the debate, there are many people who believe that humans will always be able to adapt and add value to society, regardless of what machines can or cannot do. David Autor, in his TED talk, makes a compelling point that many times before it was argued that “this time is different” and that it never was.

Other articles, including this one in the Washington Post, argue that the fears are overblown. The robots will not be coming in large numbers, to replace humans. Not in the near future, anyway.

Other economists, such as  Richard Freeman, in an article published in Harvard Magazine agree and also believe that the fears are unwarranted: “We should worry less about the potential displacement of human labor by robots than about how to share fairly across society the prosperity that the robots produce.

His point is that the problem is not so much on the lack of jobs, but on the depression of wages. Jobs may still exist, but will not be well paid, and the existing imbalances in income distribution will only become worst.

Maybe, in the end, this opinion represents a balanced synthesis of the two competing views: jobs will still exist, for anyone who wants to take them, but there will be competition (from robots and intelligent agents) for them, pushing down the wages.

European Parliament committee approves proposal to give robots legal status and responsibilities

The committee on legal affairs of the European Parliament has drafted and approved a report that addresses many of the legal, social and financial consequences of the development of robots and artificial intelligence (AI).

The draft report addresses a large number of issues related with the advances of robotics, AI and related technologies, and proposes a number of european regulations to govern the utilization of robots and other advanced AI agents.

The report was approved with a 17-2 vote (and two abstentions) by the parliament’s legal affairs committee.


Among many other issues addressed, the report considers:

  • The question of legal status: “whereas, ultimately, robots’ autonomy raises the question of their nature in the light of the existing legal categories – of whether they should be regarded as natural persons, legal persons, animals or objects – or whether a new category should be created”, advancing with the proposal of “creating a specific legal status for robots, so that at least the most sophisticated autonomous robots could be established as having the status of electronic persons with specific rights and obligations…”
  • The impact of robotics and AI on employment and social security, and concludes that “consideration should be given to the possible need to introduce corporate reporting requirements on the extent and proportion of the contribution of robotics and AI to the economic results of a company for the purpose of taxation and social security contributions; takes the view that in the light of the possible effects on the labour market of robotics and AI a general basic income should be seriously considered, and invites all Member States to do so;”
  • The need for a clear and unambiguous registration system for robots, recommending that “a system of registration of advanced robots should be introduced, and calls on the Commission to establish criteria for the classification of robots with a view to identifying the robots that would need to be registered;”


How to create a mind

Ray Kurzweil’s latest book, How to Create a Mind, published in 2012, is an interesting read and shows some welcome change on his views of science and technology. Unlike some of his previous (and influntial) books, including The Singularity is Near, The Age of Spiritual Machines and The Age of Intelligent Machines, the main point of this book is not that exponential technological development will bring in a technological singularity in a few decades.


True, that theme is still present, but takes second place to the main theme of the book, a concrete (although incomplete) proposal to build intelligent systems that are inspired in the architecture of the human neocortex.

Kurzweil main point in this book is to present a model of the human neocortex, what he calls The Pattern Recognition Theory of the Mind (PRTM). In this theory, the neocortex is simply a very powerful pattern recognition system, built out of about 300 million (his number, not mine) similar pattern recognizers. The input from each of these recognizers can come from either external inputs, through the senses, or from the older parts (evolutionary speaking) of the brain, or from the output of other pattern recognizers in the neocortex. Each recognizer is relatively simple, and can only recognize a simple pattern (say the word APPLE) but, through complex interconnections with other recognizers above and below, it makes possible all sorts of thinking and abstract reasoning.

Each pattern consists, in its essence, in a short sequence of symbols, and is connected, through bundles of axons, to the actual place in the cortex where these symbols are activated, by another pattern recognizer. In most cases, the memories these recognizers represent must be accessed in a specific order. He gives the example that very few persons can recite the alphabet backwards, or even their social security number, which is taken as evidence of the sequential nature of operation of these pattern recognizers.

The key point of the book is that the actual algorithms used to build and structure a neocortex may soon become well understood, and used to build intelligent machines, embodied with true strong Artificial Intelligence. How to Create a Mind falls somewhat short of the promise in the subtitle, The Secret of Human Thought Revealed, but still makes for some interesting reading.

Finland flirts with basic income

In an experimental trial started January 1st, 2017, Finland started to attribute a basic social income to 2000 unemployed persons. Unlike a standard unemployment income, this subsidy will still be paid even if the recipients find work.


Under this scheme, unemployed Finns, with ages in the 25 to 58 range will receive a guaranteed sum of €560, every month, independently of whether they have or find any other income. This value will replace other existing social benefits. A number of articles, including this one, in the Guardian, provide additional information about the scheme.

The move comes on the wake of a promise made by the centre-right government coalition elected in 2015, to run a basic income pilot project. The objective is to address concerns related with the disappearance of jobs caused by technological changes.

Other countries, cities and regions are running tentative experiments in basic income, including the Netherlands, Canada and the city of Livorno, in Italy. However, many concerns remain about whether this mechanism is the right mechanism to address the challenges brought in by the advances of technology.

Photo by Mikko Paananen, available at WikiMedia Commons.