The impact of AI and automation on the future of work in ...
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THE IMPACT OF AI AND AUTOMATION ON THE FUTURE OF WORK THE FUTURE OF JOBS IN THE KINGDOM OF SAUDI ARABIA (KSA): Several forces are leading to a rise in AI and automation ... GLOBAL LOCAL TECHNOLOGICAL ADVANCES: Machines can outperform humans in a growing number of tasks ECONOMIC BENEFITS: AI and automation can im- prove productivity, increase efficiency and quality, and reduce labor costs GROWTH TARGETS: Productivity must in- crease rapidly to achieve Vision 2030 targets INNOVATION GOALS: KSA strives to expand advanced technologies and entrepreneurship 25 % Occupations vary in their automation potential 3 , but some work activities of most occupations have the poten- tial to be automated today Occupations requiring more creative, complex, and human-interaction activities are more difficult to auto- mate today SAMPLE JOB AUTOMATION POTENTIAL 3 BY OCCUPATION IN KSA % OF WORK ACTIVITIES Travel agent, cashier, lawyer, judge Mechanic, service techni- cian, maintenance worker Carpenter, electrician, fire- fighter, police, barber Physicist, pharmacist, counselor, landscaper Home health aide, dental assistant Financial analyst, teacher, legislator, engineer Actuary, statistician, pilot, farmer Baker, waiter, butcher Receptionist, courier, typist 3 We define automation potential according to the work activities that can be automated by adapting currently demonstrated technology Welder, machine operator 65 % SOURCE: • James Manyika, Susan Lund, Michael Chui, Jacques Bughin, Jonathan Woetzel, Parul Batra, Ryan Ko and Saurabh Sanghvi “Jobs Lost, Jobs Gained: Workforce Transitions in the time of Automa- tion”, McKinsey Global Institute Report, December 2017. • McKinsey Global Institute analysis, Jan Peter aus dem Moore, Vinay Chandran, Jorg Schubert “The Future of Jobs in the Middle East”, January 2018. • McKinsey Global Institute analysis • Jacques Bughin, Eric Hazan, Susan Lund, Peter Dahlstrom, Anna Wiesinger, Amresh Subramaniam “Skill Shift: Automation and the Future of the Workforce”, McKinsey Global Institute Report, May 2018. • Ministry of Education in Saudi Arabia, Human Resources Development Fund - KSA The government offers support through several initiatives To learn more, read our report “The Future of Jobs in the Middle East” Saifi connects Saudi na- tionals aged 17+ with summer intern- ships and training programs My Scholarship, My Job supports Saudi stu- dents in finding jobs in KSA and sponsors overseas studies Doroob offers free online courses to help Saudis develop work skills Automation technology is increasingly affecting a wide range of work activities, not only low-skill occupations Routine-task intensive sectors like manufacturing have a technical automation potential greater than 50%. 41% of existing work activities in KSA are theoreti- cally automatable today … and this shift will impact KSA’s economy TECHNICAL POTENTIAL FOR AUTOMATION 1 BY SECTOR IN KSA 2.000.000 500.000 1.000.000 1.500.000 Healthcare and social assistance Transportation and warehousing Manufacturing Accommodation and food services Agriculture, forestry, fishing Wholesale trade Retail trade Arts, entertainment, and recreation Construction Educational services FTE employment 2016 1 We define automation potential according to the work activities that that can theoretically be automated by adapting currently demonstrated technology 2 Job zones are based primarily on education required and adjusted for experience required BY JOB ZONE 2 IN KSA FTE EMPLOYMENT 2016, % Some post- secondary Bachelor's degree or higher 15% 21% 63% High school or less Ability to automate (%) 20 45 70 CERTAIN SKILLS WILL BECOME MORE IMPORTANT THAN OTHERS AS AI AND AUTOMATION ARE ADOPTED Saudis can focus on developing skills that complement the rise of AI and automation… MORE IMPORTANT LESS IMPORTANT • Entrepreneurship and initiative taking • Leadership and managing others SOCIAL AND EMOTIONAL • Creativity • Complex information processing and interpretation HIGHER COGNITIVE BASIC COGNITIVE • Basic data input and processing • Basic literacy, numeracy, and communication PHYSICAL AND MANUAL • General equipment operation and navigation • Inspecting and monitoring • Advanced IT skills • Basic digital skills TECHNOLOGICAL
Transcript of The impact of AI and automation on the future of work in ...
THE IMPACT OF AI AND AUTOMATION ON THE FUTURE OF WORK
THE FUTURE OF JOBS IN THE KINGDOM OF SAUDI ARABIA (KSA):
Several forces are leading to a rise in AI and automation ...
GLOBAL LOCAL
TECHNOLOGICAL ADVANCES:
Machines can outperform humans in a growing number of tasks
ECONOMIC BENEFITS:
AI and automation can im-prove productivity, increase efficiency and quality, and reduce labor costs
GROWTH TARGETS:
Productivity must in-crease rapidly to achieve Vision 2030 targets
INNOVATION GOALS:
KSA strives to expand advanced technologies and entrepreneurship
25%
Occupations vary in their automation potential3, but some work activities of most occupations have the poten-tial to be automated today
Occupations requiring more creative, complex, and human-interaction activities are more difficult to auto-mate today
SAMPLE JOB AUTOMATION POTENTIAL3 BY OCCUPATION IN KSA
% OF WORK ACTIVITIES
Travel agent, cashier, lawyer, judge
Mechanic, service techni-cian, maintenance worker
Carpenter, electrician, fire-fighter, police, barber
Physicist, pharmacist, counselor, landscaper
Home health aide, dental assistant
Financial analyst, teacher, legislator, engineer
Actuary, statistician, pilot, farmer
Baker, waiter, butcher
Receptionist, courier, typist
3 We define automation potential according to the work activities that can be automated by adapting currently demonstrated technology
Welder, machine operator65%
SOURCE: • James Manyika, Susan Lund, Michael Chui, Jacques Bughin, Jonathan Woetzel, Parul Batra, Ryan
Ko and Saurabh Sanghvi “Jobs Lost, Jobs Gained: Workforce Transitions in the time of Automa-tion”, McKinsey Global Institute Report, December 2017.
• McKinsey Global Institute analysis, Jan Peter aus dem Moore, Vinay Chandran, Jorg Schubert “The Future of Jobs in the Middle East”, January 2018.
• McKinsey Global Institute analysis• Jacques Bughin, Eric Hazan, Susan Lund, Peter Dahlstrom, Anna Wiesinger, Amresh Subramaniam “Skill
Shift: Automation and the Future of the Workforce”, McKinsey Global Institute Report, May 2018.• Ministry of Education in Saudi Arabia, Human Resources Development Fund - KSA
The government offers support through several initiatives
To learn more, read our report “The Future of Jobs in the Middle East”
Saifi
connects Saudi na-tionals aged 17+
with summer intern-ships and training
programs
My Scholarship, My Job
supports Saudi stu-dents in finding jobs in KSA and sponsors
overseas studies
Doroob
offers free online courses to help Saudis develop
work skills
Automation technology is increasingly affecting a wide range of work activities, not only low-skill occupations
Routine-task intensive sectors like manufacturing have a technical automation potential greater than 50%.
41%of existing work activities in KSA are theoreti-cally automatable today
… and this shift will impact KSA’s economy
TECHNICAL POTENTIAL FOR AUTOMATION1
BY SECTOR IN KSA
2.000.000500.000 1.000.000 1.500.000
Healthcare andsocial assistance
Transportation andwarehousing
Manufacturing
Accommodation andfood services
Agriculture, forestry,fishing
Wholesale trade
Retail trade
Arts, entertainment,and recreation
Construction
Educational services
FTE employment 2016
1 We define automation potential according to the work activities that that can theoretically be automated by adapting currently demonstrated technology
2 Job zones are based primarily on education required and adjusted for experience required
BY JOB ZONE2 IN KSA
FTE EMPLOYMENT 2016, %
Some post-secondary
Bachelor's degreeor higher
15%
21%63%
High school or less
Ability to automate (%)
20 45 70
CERTAIN SKILLS WILL BECOME MORE IMPORTANT THAN OTHERS AS AI AND AUTOMATION ARE ADOPTED
Saudis can focus on developing skills that complement the rise of AI and automation…
MORE IMPORTANT
LESS IMPORTANT
• Entrepreneurship and initiative taking• Leadership and managing others
SOCIAL AND EMOTIONAL
• Creativity• Complex information processing
and interpretation
HIGHER COGNITIVE
BASIC COGNITIVE
• Basic data input and processing• Basic literacy, numeracy, and
communication
PHYSICAL AND MANUAL
• General equipment operation and navigation
• Inspecting and monitoring
• Advanced IT skills • Basic digital skills
TECHNOLOGICAL
