Innovation & Tech

AI Could Reshape Work—and Make Human Judgment More Valuable

About 60% of U.S. employment in 2018 was in specialties that did not exist in 1940, as AI pressures support work and raises the value of human judgment.

By Grace Kim

5 min read

AI, Empathy, and Entrepreneurship: Could Robot Labor Make the Economy More Human? - The Daily Economy
AI, Empathy, and Entrepreneurship: Could Robot Labor Make the Economy More Human? - The Daily Economydaha3131053 / pixabay

What's News

  • About 60% of U.S. employment in 2018 was in occupational specialties not yet invented in 1940.
  • Salesforce recently let go of almost half its customer support staff while hiring about as many workers in AI projects and sales.
  • Nobel laureate Joseph Stiglitz warns that AI “labor stripping” will destroy jobs and deepen inequality.
  • Elon Musk has predicted that AI will double the rate of growth.

The Daily Economy cites research showing about 60% of U.S. employment in 2018 was in occupational specialties that had not yet been invented in 1940. The figure anchors its argument that AI and robotics can displace familiar roles while redirecting labor toward work that does not yet exist.

The essay says experts expect AI to take over many human tasks. Some speculate that AI and robots could make conventional work “optional” and replace employment, as markets define it, with entrepreneurship: using automated systems to produce new goods and services. The essay treats that prospect as possible, not settled.

Will AI create enough jobs?

The Daily Economy says history offers a favorable precedent. Technological revolutions have caused temporary disruption, shifting workers from “old” jobs to “new” ones before raising productivity, prosperity and higher-paying work. Not long ago, the vast majority of people in industrialized countries worked in agriculture.

Mechanized equipment, including the tractor, displaced farm labor without lasting mass unemployment, the essay says. Today’s population is much larger than in agrarian times, a sign of more jobs overall and higher salaries and living standards. The source treats labor displacement as a change in work, not its end.

Nobel laureate Joseph Stiglitz dissents. He warns that AI “labor stripping” will destroy jobs and deepen inequality. He also argues that “unfettered capitalism, unfettered innovation, does not lead to the general well-being of our society.” The Daily Economy argues that those fears are exaggerated, if not politically motivated, while expecting dramatic labor-market change and worker transition pain.

The practical takeaway from the source is simple: workers will face transition pain even if new roles eventually emerge.

Which jobs face the earliest disruption?

The article expects easily replaced roles and jobs that contribute marginally to a company’s bottom line to go first. These include process documentation, bureaucratic control, production-goal calculations and the posts David Graeber called “bullshit jobs.”

It describes many such jobs as consumption that feeds institutional egos or sustains appearances rather than adds value to final production. AI can supply management data quickly and almost costlessly, the essay says, while passively monitoring and interpreting system performance in real time.

Human resources, coding, compliance and administrative-secretary work are likely to shift from their current forms, according to the source. New roles should emerge from higher productivity and the availability of people willing to work. Elon Musk has predicted that AI will double the rate of growth.

The source sees no fixed limit on useful human work, but says new roles require different skills and create matching problems. Salesforce recently let go of almost half its customer support staff, citing AI capabilities, while hiring about as many workers in AI projects and sales.

The company is more productive and employs the same number of people. Displaced support workers, however, found their skills less sought after and may struggle to find lasting new employment unless they update their competencies. If Stiglitz is right, this pattern could extend to most or all jobs.

The Daily Economy instead argues that most jobs available to human workers are yet to be created and will focus on creating value rather than production tasks. AI, on this account, will remove repetitive work and give people more time to serve one another.

Why will people still pay for human service?

Job growth may concentrate where AI struggles to compete, even if automated systems are more productive by some measures. The essay calls loneliness an epidemic linked to distress and ill health. Company, companionship, mentorship, care and friendship command financial rewards because people value the “human touch.”

Human service already carried economic value before robots. High-end stores and luxury resorts are comparatively overstaffed because customers value friendly assistance and will pay for the interaction, according to The Daily Economy. Kiosks and automation may handle routine service efficiently, but providers could sell concierge add-ons that restore human contact.

The essay goes further: customers may pay extra to have UPS and FedEx packages delivered by a person, for the interaction or care only human hands provide. Value, it concludes, lies not just in producing a product or completing a service, but also in how the service is performed and by whom.

Can empathy create the next wave of businesses?

Entrepreneurship’s advantage, the essay says, is judgment rooted in empathy: imagining new futures, identifying unmet needs and constructing novel ways to improve people’s lives. AI can extrapolate from the past, but innovation is not a linear exercise in finding “what’s next.” It can break with the past when entrepreneurs understand what drives people.

Experimentation is not random; it starts with entrepreneurs’ humanity and their understanding of what drives people. The judgment required to decide what brand-new goods to produce and how to tailor them cannot be taken over by machines, the article argues. Its conclusion is blunt: “Empathy is the method by which entrepreneurs generate value.”

Not everyone would need to own a company. In an economy using AI and robotics, entrepreneurship could mean exercising judgment about the future and contracting with automated facilities to produce novel goods. Development costs would fall, the essay says, while the value of good judgment about what others value would rise.

The source expects neither enormous capital nor huge markets to remain essential. Earning a living could be enough for most people. The definition of a job would change as production shifts from repetitive tasks toward services, judgment and new business activity.

What changes for workers and companies?

The Daily Economy rejects “But will there really be enough jobs?” as the central question. A factory-floor grandfather would hardly recognize screen-gazing and rhythmic key-clicking as gainful employment, so work will change even if employment persists.

In a hyperproductive economy, the source expects the cost of living to fall. At the same time, human labor should command more value when it supplies the “human touch” or exercises entrepreneurial judgment. People could work less while maintaining a higher standard of living.

Production would move out of sight as AI and robots handle it. Human labor would become more distinct, making the economy people encounter directly more human than it is now, according to the essay. The next test is whether employers can use higher productivity to create new roles without leaving displaced workers behind.

Source: GN: Entrepreneurship

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Grace Kim

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Market editor covering people, launches and day-to-day practice in entrepreneurship, startups and venture funding at Business Bearings.

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