Automation, digitalization and the future of work: A critical review

Abstract

PurposeThe study aims to provide a critical review of the extent to which digital technologies are likely to replace human labour, the exponential rise in the amount of work to be done and how far distinctively human skills are future-proofed and therefore likely to be in short supply. It reviews the evidence for a permanent switch to home and remote working enabled by emerging technologies. It assesses the business, digital and labour strategies of work organisations and the promise and challenges from a dominant trend towards a digitally enabled flexible labour model.Design/methodology/approachA critical review of 1020 plus case studies and the extant literature was carried out.FindingsThe relationship between emerging technologies and work is widely misunderstood, and there are major qualifiers to the idea of an overwhelming tsunami of technology drastically reducing headcounts globally. Distinctive human skills remain valuable, the amount of work to be done is increasing exponentially and automation is becoming more a coping than a labour replacement mechanism. Moves to a hybrid digitalised flexible labour model are promising but not if short-term, and if the challenges they represent are not managed well.Research limitations/implicationsThe main limitation is that we are making projections into the future, though we are drawing on a lot of different sources and evidence and past data projected into the future.Practical implicationsThe problem is not labour displacement but large skills shortages that will slow down the speed of technology adoption. Skills development is vital, as is the taking of long-term perspectives towards the management of hybrid, flexible working based on human-machine interactions.Social implicationsOrganisations need to revitalise their training and development and labour management models. Governments and intermediary institutions need to manage transition states if the skills required to gain economic growth are to be available, and to ensure that large labour pools do not get bypassed from not having requisite skills.Originality/valueThe study offers a more subtle and complex perspective on the emerging evidence about the future of technology and work.