Recent developments in automation and artificial intelligence (AI) are leading to a wave of innovation in organizational design and changes in the workplace. Techno-optimists even named it the “second machine age,” arguing that it now involves the substitution of the human brain. Other authors see this as just a continuation of previous ICT developments. Potentially, automation and AI can have significant technical, economic, and social implications in firms. This paper will answer the following question: What are the implications on industrial productivity and employment in the automotive sector with the recent automation trends, including AI, in Portugal? Our approach used mixed methods to conduct statistical analyses of relevant databases and interviews with experts on R&D projects related to automation and AI implementation. Results suggest that automation can have widespread adoption in the short term in the automotive sector, but AI technologies will take more time to be adopted. The findings show that adoption of automation and AI increases productivity in firms and is dephased in time with employment implications. Investments in automation are not substituting operators but rather changing work organization. Thus, negative effects of technology and unemployment were not substantiated by our results.
New technologies, sustainability policies, protectionism and consumers preferences are pushing for the reorganisation of the automotive cluster. The emergence of artificial intelligence (AI) has the potential to create disruptive effects in the employment systems across the world. The future deployment of broad-spectrum algorithms capable of being used in wide areas of application (e.g., industrial robotics, software and data communication) can lead to considerable changes in current work patterns, swiftly render many unemployed across the globe and profoundly destabilise labour relations. In this paper, we identify the probable penetration of AI in the automotive sector and to study its effects on work organisation, employment, and industrial relations systems, in Portugal. These changes are put in place to enhance the product quality, control costs, and improve productivity. We study these implications on productivity and industrial relations collecting new data and obtain results based on secondary statistical analyses and case studies in the automotive industry. Finally, changes in the productivity and labour market will be discussed considering the employment and skills changes in the automotive sector when investment on automation becomes a clear trend in the automotive sector.
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