Documents Chui, Michael K. F. 4 results

"Advances in robotics, artificial intelligence, and machine learning are ushering in a new age of automation, as machines match or outperform human performance in a range of work activities, including ones requiring cognitive capabilities. In this report, part of our ongoing research into the future of work, we analyze the automation potential of the global economy, the factors that will determine the pace and extent of workplace adoption, and the economic impact associated with its potential."

"Financial structure is an important determinant of the efficiency and stability of financial systems and the channels through which monetary policy is transmitted. We document the substantial differences in the financial systems of the euro area, the UK, the USA, Japan, and non-Japan Asia. The traditional classification of bank-based and market-based systems is shown to be too simplistic. We focus on two particular aspects of financial structure: financial institutions and the housing and mortgage markets. It is shown that institutional investors differ in important ways across the regions considered. One recent change is that Central Banks, particularly those in Asia, have become significant institutional investors. Housing and mortgage markets differ even more. We are still a long way from understanding which kind of financial structure is best."

"Automation is not a new phenomenon, and fears about its transformation of the workplace and effects on employment date back centuries, even before the Industrial Revolution in the 18th and 19th centuries. In the 1960s, US President Lyndon Johnson empaneled a “National Commission on Technology, Automation, and Economic Progress.” Among its conclusions was “the basic fact that technology destroys jobs, but not work.”* Fast forward and rapid recent advances in automation technologies, including artificial intelligence, autonomous systems, and robotics are now raising the fears anew—and with new urgency. In our January 2017 report on automation, A future that works: Automation, employment, and productivity, we analyzed the automation potential of the global economy, the timelines over which the phenomenon could play out, and the powerful productivity boost that automation adoption could deliver.

This report goes a step further by examining both the potential labor market disruptions from automation and some potential sources of new labor demand that will create jobs. We develop scenarios that seek to address some of the questions most often raised in the
public debate. Will there be enough work in the future to maintain full employment, and if so what will that work be? Which occupations will thrive, and which ones will wither? What are the potential implications for skills and wages as machines perform some or the tasks that humans now do?

The report is part of the McKinsey Global Institute's research program on the future of work, and is by no means the final word on this topic. The technology continues to evolve, as will our collective understanding of the economic implications. Indeed, we highlight some of the
limitations of our analysis and scenarios, and areas for further research. The report builds on our previous research on labor markets, incomes, skills, and the expanding range of models of work, including the gig economy, as well as the potential impacts on the global economy of digitization, automation, robotics, and artificial intelligence. "