Construction Among Top Sectors Affected by Ai Technology

• 22 September 2018
• Local News
• 2967 Views

Sample photo by Small Business Exchange

Construction is among the top sectors most affected by Artificial intelligence (AI) technology, according to a newly published report by technology conglomerate CISCO and research analysis Oxford Economics.

While claiming that the use of artificial intelligence (AI) through software, hardware, and robotics, has the potential to transform business capabilities, the report “Technology and the future of ASEAN jobs”, indicated that by 2028, 28 million fewer workers across these economies — more than 10% of the current ASEAN-6 workforce — will be required to produce the same level of output as today. It is a result of an analysis on data on 433 occupations (275 million full-time equivalent (FTE) workers) across 21 industries.

As shown in their graph, the negative impact of increased technology adoption on the construction sector stood at -9.4% while the job displacement rate stood at -2.0%. However, the report said that many sectors will experience a net increase in their demand for jobs by 2028, because the rise in spending power through increased productivity more than offsets the jobs directly displaced by technology.

In fact, the construction sector alone will see a rise in demand for new workers of up to 0.9 million from 2018-2028. The drive in demand for more workers in the construction industry is due to the advance in drone technology, smart machines and new operating software which will deliver considerable productivity gains for the sector. With this increase of income through technology, construction spending will also increase, which will be enough to offset the labour displacement effect.

According to the report, in order to mitigate the negative impact of technological change, a massive policy changes from government departments such as businesses, educational institutions, technology providers, and workers’ groups is required. These departments will need to work collectively to provide workers with the necessary tools and skills for the transition, the report noted.

• Analysis