The Covid-19 pandemic has left millions of Americans unemployed, especially in the hospitality industry, which has seen an increase in the adoption of new technology.
Meanwhile, the use of robots and artificial intelligence is on the rise.
Covid-19 is making millions of Americans unemployed, including human resources in service industries such as hotels. In October, about 11 million Americans were without a job, 6 million more unemployed than at the same time in 2019.
While the labor market is adversely affected by Covid-19, the economic situation is precarious, robots are becoming a sought-after item. Many technology manufacturers say orders for robots have increased during the pandemic. These are service robots, AI-powered software, or enhanced use of supermarket self-service.
Robots deliver goods in an Amazon warehouse.
In the hotel, the robot can do check-in procedures, serve basic requests of customers such as bringing water to the room, answering customer questions or cooking. Most importantly, the robot is completely immune to Covid-19. So while many people are struggling because of the pandemic, robots are being given the opportunity to replace humans.
A recent report by the World Economic Forum predicts that by 2025, the wave of automation spurred by the Covid-19 pandemic will eliminate 85 million jobs globally.
Along with that, new jobs will be created but “businesses, governments and workers must urgently plan to implement a new vision for the global workforce”.
The hotel industry, which has been one of the hardest hit by the Covid-19 pandemic, has seen an increase in the adoption of new technology. Hotels allow passengers to check-in through automatic counters or use service robots whenever guests need them.
“More and more hotels are experimenting with new technology during the pandemic,” said Ron Swidler, Chief Information Officer at Gettys Group, a hotel development and design consultancy. The cost of automation is going down, technology is getting better. We see innovation working in many parts of the world.”
Swidler cites the FlyZoo hotel belonging to Alibaba Group as an example of future hotels. Accordingly, the hotel uses service robots and artificial intelligence control systems to replace conventional labor.
Passengers can automatically check-in in less than a minute, use facial recognition software to unlock the room, control the room by voice.
Not only the hotel industry, a document released by the Federal Reserve Bank of Philadelphia in September indicates that jobs in automated occupations could be replaced by existing or advanced technology.
During the economic crisis caused by the Covid-19 pandemic, hotel receptionists, shuttle drivers, retail sales staff will be under a lot of pressure.
Pepper, the service robot is chatting with a customer.
“The longer it takes to completely control Covid-19, the greater the possibility that technology will permanently replace the workforce,” said Lei Ding, senior economic adviser at the Federal Reserve Bank of Philadelphia. Temporary job loss becomes permanent job loss.”
Currently, there have been no recorded cases of permanent job loss caused by the pandemic. But there have been examples of technology “taking” jobs out of the hands of workers.
In June, 500 employees at toll stations on the 580km highway in Pennsylvania were laid off. The state switched to automatic toll collection by software and electronic devices.
For years, the Pennsylvania government has been discussing replacing toll collectors with automated toll booths, but the expected date is January 2022. Covid-19 has accelerated this process.
This is consistent with research showing that automation does not grow steadily but occurs in waves, often based on economic downturns. After experiencing economic shocks, businesses must increase automation to increase productivity.
Researchers from the University of Rochester did a 2016 study looking at 87 million online job postings before and after the Great Recession. They found that employers in cities hit hard by the Great Recession were more likely to replace less-skilled workers with more skilled workers or increase their use of automation to boost productivity.
While automation can benefit highly skilled workers and help stimulate the economy, it will hit low-wage workers hard. They not only lose their jobs, have their wages reduced due to automation, but also because they cannot go to work.
Meanwhile, the source of workers with high wages and education can work flexibly such as telecommuting, working from home, the rate of dismissal has also decreased.
However, many roboticists point out that AI technology (artificial intelligence) is not smart enough to cause a wave of mass layoffs. New AI technology can take a lot of money, time, and resources to set up, which many businesses fall short of during the pandemic.
“AI can make people more productive, but it can’t replace humans if society is human-centered in technological advancements,” said Daron Acemoglu, an economist at the Massachusetts Institute of Technology. But if the government doesn’t take care of those who have lost their jobs by training them in new jobs, automation can have a serious and lasting impact.”