ECONOMIC CONSEQUENCES OF

ROBOTIC AUTOMATION OF
PRODUCTION PROCESSES AND
SERVICES

From the invention of the steam engine to the Internet, technology has helped
drive human progress. Not so long ago the idea of robots patrolling neighborhoods
was the domain of science fiction. As technology has advanced, machines are
increasingly working alongside employees, as they do at Amazons new warehouse
in Trenton, N.J., and robots have even been developed to help provide therapy for
children during long hospital stays.

The term Robotic automation refers to the automation of industrial and clerical
processes using robots, of various guises. Robotic automation corresponds to an
emerging trend for technology to replace the functions performed by humans.

Machines are only getting smarter

and more efficient.
So much so that they're starting to
take over both blue-collar and
white-collar jobs. With robots being
more cost-effective than hiring
individuals in the workplace over
the long term, jobs with the lowest
wages were also at very high risk of
going to the machines. As workers
are eliminated and people become
unemployed or their wages fall,
consumers will have less purchasing
power to buy the products and
services produced by the economy.
As a result, there will be less and
less demand.

An Oxford University survey

suggested that 47 % of the
worlds jobs will be taken by
robots in nearest future. Bank of
England official warned that 80
million jobs are at risk of being
taken over by robots in the next
few decades. As technology
improves and its use in the
workplace expands, the demand
for high-tech workers falls. At the
end of the simulation, nearly 68%
of high-tech workers end up in
the service sector, earning
approximately 14% less than they
did previously.

Jobs with the highest level of

being taken over by a machine
in the U.K. included
administrative, production,
and clerical tasks, with
accountants having a 95%
probability of losing their job
to machines, while
hairdressers had lower risk, at
33%. Mental health and
substance abuse social
workers appear to be in the
clear, with a 0.3% chance of
being automated, while
umpires and referees have a
98.3% chance.

But at the same time robots contribute to the increase of labour

productivity and scale of production, reduction of production costs. A
robot can carry out any type of task which is assigned to it, performing
it quickly and accurately every time. Robots are far more efficient at
doing repetitive jobs.

By taking over labour-intensive administrative tasks, robots may free employees for
more high-value activities like focusing on decision-making and customer service
that can't be automated. Robots will produce 5 times more products since they can
work around the clock, on nights and weekends. With automation of work
processes, administrative costs are reduced immediately and no additional back
office resources are needed, for a quick return on investment.

In conclusion we find that despite the risk of unemployment growth industrial

robots make significant contribution to labour productivity and aggregate growth
and also increase wages and total factor productivity. Robotic automation makes
routine desktop task easy, fast and error-free and improves efficiency of
production. It promotes optimization of resources utilization and decreasing of
costs of production.