David Oks explaining how it was the iPhone, and not ATM, that killed the bank teller’s job. And then he goes on to theorise that it is paradigm shift that displaces workers and not automation. An insightful read.
The ATM tried to do the teller’s job better, faster, cheaper; it tried to fit capital into a labor-shaped hole; but the iPhone made the teller’s job irrelevant. One automated tasks within an existing paradigm, and the other created a new paradigm in which those tasks simply didn’t need to exist at all. And it is paradigm replacement, not task automation, that actually displaces workers—and, conversely, unlocks the latent productivity within any technology. That’s because as long as the old paradigm persists, there will be labor-shaped holes in which capital substitution will encounter constant frictions and bottlenecks.
This has, I think, serious implications for how we’re thinking about AI.
People in AI frequently talk about the vision of AI being a “drop-in remote worker”: AI systems that can be inserted into a workflow, learn it, and eventually do it on the level of a competent human. And they see that as the point where you’ll start to see serious productivity gains and labor displacement.
I am not a “denier” on the question of technological job loss; Vance’s blithe optimism is not mine. But I’m skeptical that simply slotting AI into human-shaped jobs will have the results people seem to expect. The history of technology, even exceptionally powerful general-purpose technology, tells us that as long as you are trying to fit capital into labor-shaped holes you will find yourself confronted by endless frictions: just as with electricity, the productivity inherent in any technology is unleashed only when you figure out how to organize work around it, rather than slotting it into what already exists. We are still very much in the regime of slotting it in. And as long as we are in that regime, I expect disappointing productivity gains and relatively little real displacement.

You must be logged in to post a comment.