Denis Opudo
Research done in South Africa tackled the impact of digital technologies on economy and jobs. The research also showed that more than a third of jobs in South Africa might be automated. A new Accenture report was released in the country named Reworking the Revolution. It shows that business can increase revenue by 38% come 2022 and increase the level of employment by 10%. The government should invest in human-machine collaboration and intelligent technologies to attain that. South Africa currently has a total of 5.7 million jobs.
Profit could be raised by $4.8 trillion globally if people invest in AI and human machine. This is according to Reworking the Revolution research. With an average company of S&P500, the number goes to $7.8 billion of revenues and $880 million increase in profit. Digital technologies are bringing in the new economic era. This is by outplaying the physical limitations of capital and labor. It exposes new sources of value and growth, increasing efficiency and driving competitiveness. Countries like South Africa stand a chance of losing more jobs since. This is because they are less prepared for automated jobs.
The expected automated jobs are high compared to more digitally advanced countries. From the research also, a country like Germany is second to with 24% to Brazil that has 46%. Given the fragile economy and unemployment more so to youths more job loses is a mess to the country. Job losses not only have an impact on individuals and their families. It also affects the economy. When workers lack jobs, they do not have the income to offer them purchasing power. This will make them less demanding for utilities and products and services of private sectors and government. Creating jobs and ensuring competition in technology is important for South Africa.
To influence the economy through technology both human and the machine should work together. This allows them to create differentiated customer experiences. At the same time create new products and services for new markets. It will take time for South Africa to shift to using machines. This is compared to other developed countries. Moreover, it is assumed that machines can perform 75% of the activities that make up 35% of the jobs to be automated. Jobs that are hard to automate are those that one must express themselves verbally.
Jobs at risk in the country will reduce to 20% by 2025. This is as workforce comes up with new digital demands across occupations. The country can also reduce the number of jobs at risk from 20% in 2025 to 14%. That’ is only if the country can increase the pace at which its workforce gets skills needed for human-machine partnership. Leaders should give priorities to re-skilling people by prioritizing skills for development. They should also create a more flexible workforce model. They should use automation to speed-up growth by reinvesting savings in the workforce. The government should bring personal influence. Therefore, this can bear on industry groups and collaborate with learned individuals. However, a clear collaborative multi-stakeholder approach is needed.
The government should create opportunities for its citizens to access digital technologies. It also must set policy to regulate action across areas where the digital revolution is likely to have the most impact. Corporate in South Africa must work at using technology to improve growth. It should go beyond achieving efficiency and developing its people. The course of the digital revolution cannot be changed, but it can be smartly managed. Learning institutions need to play a role too.
