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<div style="text-align: center;" align="center"><span style="font-size: 16px; font-weight: normal; font-family: Calibri, Helvetica, Arial, sans-serif;">In conversation with</span></div>
<div style="text-align: center;" align="center"><span style="font-size: 20px; font-family: Calibri, Helvetica, Arial, sans-serif;">Maya Horii</span></div>
<div style="text-align: center;" align="center"><span style="font-size: 18px; font-weight: normal; font-family: Calibri, Helvetica, Arial, sans-serif; font-style: italic;">Japan and the Problem & Promise of Automation</span></div>
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<span style="font-size: 16px; font-weight: normal; font-family: Calibri, Helvetica, Arial, sans-serif;">Click </span><a href="http://www.insideasiapodcast.com/japan-and-automation-w-maya-horii/" rel="noopener noreferrer" target="_blank" style="font-size: 16px; font-family: Calibri, Helvetica, Arial, sans-serif; color: rgb(207, 143, 18); font-weight: normal; font-style: normal; text-decoration: underline;">here</a><span style="font-size: 16px; font-family: Calibri, Helvetica, Arial, sans-serif; font-weight: normal;"> to listen to the full </span><span style="font-size: 16px; font-family: Calibri, Helvetica, Arial, sans-serif; font-style: italic;">Inside Asia</span><span style="font-size: 16px; font-family: Calibri, Helvetica, Arial, sans-serif; font-weight: normal;"> episode</span>
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<div><span style="font-size: 16px; color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif;">If the world has a problem, technology will solve it! That’s the stance taken by many technologists and industrialists who trust that human innovation – when put to the test - will prevail. It’s the “human” part of the equation, however, that is increasingly in question.   </span></div>
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<div><span style="font-size: 16px; color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif;">In Japan, for instance, where a demographic decline in working age citizens demands automation in order to fill the gap, Covid-19 has given the country further reason to invest in AI, robotics, and machine-learning wherever possible. Elsewhere in the world, where Covid has left millions unemployed, there’s rising concern that companies will pass on human employees in deference to machines. </span></div>
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<div><span style="font-size: 16px; color: rgb(0, 0, 0); font-weight: bold;">Japan as an AI-enabled Bellwether</span></div>
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<div><span style="font-size: 16px; color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif;">Observing Japan to see how it’s robotic revolution takes hold and impacts people could serve as a bellwether for policy-makers elsewhere. Governments are desperate to rekindle economic growth after Covid’s devastating effects. This means encouraging corporate recovery, while reducing unemployment. In certain sectors – primarily industrial – the two may prove mutually exclusive.  </span></div>
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<span style="font-size: 16px; color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif;">To help us understand what’s at stake, I contacted the author of the McKinsey article,</span><span style="font-size: 16px; color: rgb(54, 97, 189); font-family: Calibri, Helvetica, Arial, sans-serif;"> </span><a href="https://www.linkedin.com/in/maya-horii-1952414/" rel="noopener noreferrer" target="_blank" style="font-size: 16px; color: rgb(54, 97, 189); font-family: Calibri, Helvetica, Arial, sans-serif; font-weight: normal; font-style: normal; text-decoration: underline;">Maya Horii</a><span style="font-size: 16px; color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif;">. She’s a Partner in McKinsey’s Tokyo office and advisor to both public agencies and private enterprise. We discussed Japan’s unique set of circumstances, its declining workforce, poor productivity, and prospects for displacing human workers with machine-based alternatives. </span>
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<div><span style="font-size: 16px; color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif; font-weight: bold;">The Rise of Industrial Robots</span></div>
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<div><span style="font-size: 16px; color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif;">At the risk of conjuring up images of robot armies deployed to displace human workers, recent studies suggest that efforts to downplay that risk might be overstated. In other words, companies emerging from the Covid crises may have no choice. Whether in the interest of increase productivity or in an effort to reduce the risk of contagion, robots and all forms of AI-driven automation are looking like viable investment options. Workers – in some sectors more than others – may prove expendable.</span></div>
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<div><span style="font-size: 16px; color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif;">Just this week, the International Federation of Robotics announced that “2.7 million robots work in factories around the globe, marking it the highest level in history.” Asia - not surprisingly - led by China, Japan and Korea, accounted for more than 218,000 robot installations in 2019,” representing nearly 68 percent of the world’s total.</span></div>
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<div><span style="font-size: 16px; color: rgb(0, 0, 0); font-weight: bold;">The Future of Humans</span></div>
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<div><span style="font-size: 16px; color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif;">In Japan and Korea, AI-enabled robots are a necessary evil to shore up the shortfall in available manpower. In China, the situation is quite different. There is no shortage of human labor. It’s instead a matter of manufacturing leadership. China installed more industrial robots last year than all other countries combined. </span></div>
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<div><span style="font-size: 16px; color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif;">The trend in AI-driven autonomation is clear and apparent. The real question is what does this mean for the human workforce? </span></div>
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<div><span style="font-size: 16px; color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif;">Researchers at MIT predict that robot deployment will quadruple in the next five years. More importantly, they say: “Our evidence shows that robots increase productivity. They are very important for continued growth, but at the same time they destroy jobs and they reduce labor demand. Those effects of robots also need to be taken into account.” Taken into account by whom? Governments? Companies? Labor Unions? The Federation?</span></div>
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<div><span style="font-size: 16px; color: rgb(0, 0, 0); font-weight: bold;">Collaborate or Dominate?</span></div>
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<div><span style="font-size: 16px; color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif;">There’s more. Some of you might have heard a lot about how robots won’t replace humans but will, instead, work with them – as if some magical human/robot melding is in the making. Well, according to the good people at the International Federation of Robotics, demand for so-called “collaborative robots” is virtually insignificant compared to demand for “traditional” robots. As in, the kind that don’t require any form of human participation – thank you very much. </span></div>
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<span style="font-family: Calibri, Helvetica, Arial, sans-serif; color: rgb(0, 0, 0); font-size: 16px;">I suspect that much of this is just evolutionary (…</span><span style="font-family: Calibri, Helvetica, Arial, sans-serif; color: rgb(0, 0, 0); font-size: 16px; font-style: italic;">said the Homo Sapiens to the Neanderthal…</span><span style="font-family: Calibri, Helvetica, Arial, sans-serif; color: rgb(0, 0, 0); font-size: 16px;">) It makes sense that labor intensive work is being subsumed by robots leaving humans to dwell on the more creative requirements of our modern economy. But what started with Industrial robots is now leaking into other sectors. Make way for the professional cleaning robots, the inspection and maintenance robots, the medical robots, and…wait for it…the powered human exoskeleton and military-grade robots. If you’ve seen the film, </span><span style="font-family: Calibri, Helvetica, Arial, sans-serif; color: rgb(0, 0, 0); font-size: 16px; font-style: italic;">The Matrix Revolutions</span><span style="font-family: Calibri, Helvetica, Arial, sans-serif; color: rgb(0, 0, 0); font-size: 16px;">, you know what I’m talking about.  </span>
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<div><span style="font-size: 16px; color: rgb(0, 0, 0); font-weight: bold;">Next Phase: Service Robots</span></div>
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<div><span style="font-family: Calibri, Helvetica, Arial, sans-serif; color: rgb(0, 0, 0); font-size: 16px;">If the current message to the global workforce is: Beware blue-collar workers, robots are coming for your jobs, then the next phase points to back-office roles where any repeatable or templatized process ranging from accounting to legal work can and will be done by AI applications. Companies know it to and are preparing in Board rooms around the world to make qualified decisions on which jobs go and which ones stay.</span></div>
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<span style="color: rgb(0, 0, 0); font-weight: bold; font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px;">Article</span><span style="color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px;">: “The Future of Work in Japan: Accelerating Automation After Covid-19,” McKinsey & Company, July 1, 2020. [</span><a href="https://www.mckinsey.com/featured-insights/asia-pacific/the-future-of-work-in-japan-accelerating-automation-after-covid-19" rel="noopener noreferrer" target="_blank" style="color: rgb(54, 97, 189); font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px; font-weight: normal; font-style: normal; text-decoration: underline;">here</a><span style="color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px;">]</span>
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<span style="color: rgb(0, 0, 0); font-weight: bold; font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px;">Scholarly Article</span><span style="color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px;">: “Demographics and Automation,” by Daron Acemoglu (MIT) and Pascual Restrepo (Boston U), MIT Economics, March 2019. [</span><a href="https://economics.mit.edu/files/16788" rel="noopener noreferrer" target="_blank" style="color: rgb(54, 97, 189); font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px; font-weight: normal; font-style: normal; text-decoration: underline;">here</a><span style="color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px;">]</span>
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<span style="color: rgb(0, 0, 0); font-weight: bold; font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px;">Article</span><span style="color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px;">: “A New Study Measures the Actual Impact of Robots on Jobs. It’s Significant,” by Sara Brown, MIT Management Sloan School, July 29, 2020. [</span><a href="https://mitsloan.mit.edu/ideas-made-to-matter/a-new-study-measures-actual-impact-robots-jobs-its-significant" rel="noopener noreferrer" target="_blank" style="color: rgb(54, 97, 189); font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px; font-weight: normal; font-style: normal; text-decoration: underline;">here</a><span style="color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px;">]</span>
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<div><span style="color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px; font-style: italic;">"Researchers Acemoglu and Restrepo looked at robot use in 19 industries, as well as census and American Community Survey data for 722 commuting zones, finding a negative relationship between a commuting zone’s exposure to robots and its post-1990 labor market outcomes.”</span></div>
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<div><span style="font-size: 14px; color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif; font-style: italic;">“They found that for every robot added per 1,000 workers in the U.S., wages decline by 0.42% and the employment-to-population ratio goes down by 0.2 percentage points — to date, this means the loss of about 400,000 jobs.”</span></div>
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<span style="font-size: 14px; color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif; font-style: italic;">"Robotic technology is expected to keep expanding, with an aggressive scenario </span><a href="https://www.bcg.com/publications/2015/lean-manufacturing-innovation-robotics-revolution-next-great-leap-manufacturing.aspx" rel="noopener noreferrer" target="_blank" style="color: rgb(54, 97, 189); font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px; font-style: italic; font-weight: normal; text-decoration: underline;">predicting that robots will quadruple</a><span style="color: rgb(54, 97, 189); font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px; font-style: italic;"> </span><span style="color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px; font-style: italic;">worldwide by 2025. This would mean 5.25 more robots per thousand workers in the U.S., and by the researchers’ estimate, a 1 percentage point lower employment-to-population ratio, and 2% lower wage growth between 2015 and 2025."</span>
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<span style="color: rgb(0, 0, 0); font-weight: bold; font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px;">Report</span><span style="color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px;">: “Putting Faces to the Jobs at Risk of Automation,” Policy Brief on the Future of Work, OECD, March 2018. [</span><a href="https://www.oecd.org/employment/Automation-policy-brief-2018.pdf" rel="noopener noreferrer" target="_blank" style="color: rgb(54, 97, 189); font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px; font-weight: normal; font-style: normal; text-decoration: underline;">here</a><span style="color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px;">]</span>
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<span style="color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px; text-decoration: underline;">Key quote</span><span style="color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px;">: </span><span style="color: rgb(0, 0, 0); font-style: italic; font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px;">"The Organization for Economic Cooperation and Development (OECD) </span><a href="https://www.oecd.org/employment/Automation-policy-brief-2018.pdf" rel="noopener noreferrer" target="_blank" style="font-size: 14px; color: rgb(54, 97, 189); font-family: Calibri, Helvetica, Arial, sans-serif; font-style: italic; font-weight: normal; text-decoration: underline;">estimates that 14% of jobs</a><span style="font-size: 14px; color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif; font-style: italic;"> in advanced economies could become susceptible to automation and another 32% substantially changed, affecting the lives of millions of workers."</span>
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<span style="color: rgb(0, 0, 0); font-weight: bold; font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px;">Article</span><span style="color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px;">: “How Japanese Look at the Rising Trend of Automation,” Entrepreneur Asia Pacific, November 13, 2018. [</span><a href="https://www.entrepreneur.com/article/323216" rel="noopener noreferrer" target="_blank" style="color: rgb(54, 97, 189); font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px; font-weight: normal; font-style: normal; text-decoration: underline;">here</a><span style="color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px;">]</span>
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<span style="color: rgb(0, 0, 0); font-weight: bold; font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px;">Article</span><span style="color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px;">: “In Advanced and Emerging Economies Alike, Worries About Job Automation,” Pew Research Center, September 13, 2018. [</span><a href="https://www.pewresearch.org/global/2018/09/13/in-advanced-and-emerging-economies-alike-worries-about-job-automation/" rel="noopener noreferrer" target="_blank" style="color: rgb(54, 97, 189); font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px; font-weight: normal; font-style: normal; text-decoration: underline;">here</a><span style="color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px;">]</span>
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<span style="color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px; text-decoration: underline;">Key quote</span><span style="color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px;">: </span><span style="color: rgb(0, 0, 0); font-style: italic; font-family: Calibri, Helvetica, Arial, sans-serif; font-size: 14px;">"In some countries and economic sectors, of course, the transformation of the workplace has already begun. In South Korea, there are more than 600 installed industrial robots for every 10,000 workers in manufacturing facilities. In Japan there are more than 300 and in the United States nearly 200. Profit maximization, and the relatively high cost of human labor, helps drive automation. The average hourly cost of a manufacturing worker is $49 in Germany and $36 in the U.S. The hourly cost of a robot is $4."</span>
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<div><span style="font-size: 16px; color: rgb(0, 0, 0); font-weight: bold; font-family: Calibri, Helvetica, Arial, sans-serif;">Diana Wu:</span></div>
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<span style="font-size: 12px; color: rgb(102, 102, 102); font-family: Calibri, Helvetica, Arial, sans-serif;">|</span><span style="font-size: 12px; color: rgb(76, 76, 76); font-family: Calibri, Helvetica, Arial, sans-serif;"> March 14, 2019 | </span>
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<span style="font-size: 14px; color: rgb(102, 102, 102);">My guest this epis</span><span style="font-size: 14px; color: rgb(76, 76, 76); font-family: Calibri, Helvetica, Arial, sans-serif;">ode had an epiphanous moment when a close friend and work co</span><span style="font-size: 14px; color: rgb(102, 102, 102);">lleague unexpectedly took her own life. That set in motion a series of questions about life and the world of work that resulted in a book, called </span><span style="font-size: 14px; color: rgb(102, 102, 102); font-style: italic;">Futureproof: Reinventing Work in an Age of Acceleration</span><span style="font-size: 14px; color: rgb(102, 102, 102);">. Diana Wu’s book is a tour de force in understanding and addressing the changing world of work facing white-collar workers and professionals. Diana addresses some of the many ways people tackle workplace demands and how others opt out for more dynamic less myopic professional paths. She also notes how the gig economy is throwing up new possibilities allowing smart, risk-ready individuals to create livelihoods with a new twist. The workplace is a central part of living. More than income, corporate professions have the power and potential to add meaning and purpose. Looking back over the long-arc of your professional career, where do you stand? Has it delivered all that it promised? Could it be time for that hard conversation, that existentialist debate with yourself that starts with…What does it all mean?</span>
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<div><span style="font-size: 16px; color: rgb(0, 0, 0); font-family: Calibri, Helvetica, Arial, sans-serif; font-weight: bold;">Jing Bing Zhang:</span></div>
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<div><span style="font-size: 12px; color: rgb(102, 102, 102); font-family: Calibri, Helvetica, Arial, sans-serif;">| January 6, 2018 |</span></div>
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<span style="font-size: 14px; color: rgb(102, 102, 102); font-family: Calibri, Helvetica, Arial, sans-serif;">Some of you will have heard the term “4th Industrial Revolution.” If you haven’t…well…don’t look now, but you’re living though the midst of it. So what is the 4th Industrial Revolution: it’s an era defined by a mashup of new technological advances; big data analytics, artificial intelligence, machine learning, blockchain, and yes, advanced robotics. And it’s robotics that lies at the center of it, where innovation meets human substitution. Here’s the billion dollar question: What happens </span><span style="font-size: 14px; color: rgb(102, 102, 102); font-style: italic; font-family: Calibri, Helvetica, Arial, sans-serif;">next </span><span style="font-size: 14px; color: rgb(102, 102, 102); font-family: Calibri, Helvetica, Arial, sans-serif;">What do you and your business need to do to survive this revolution? And why is </span><span style="font-size: 14px; color: rgb(102, 102, 102); font-style: italic; font-family: Calibri, Helvetica, Arial, sans-serif;">now</span><span style="font-size: 14px; color: rgb(102, 102, 102); font-family: Calibri, Helvetica, Arial, sans-serif;"> the time to get smart on the subject? To help us grapple with these questions and more, my guest is Dr. Jing Bing Zhang, former Research Director at IDC Asia Pacific Group, a global market research and strategic advisory firm. To help you get ready, here is a refresher on </span><a href="https://en.wikipedia.org/wiki/Three_Laws_of_Robotics" rel="noopener noreferrer" target="_blank" style="font-size: 14px; color: rgb(102, 102, 102); font-family: Calibri, Helvetica, Arial, sans-serif; font-weight: normal; font-style: normal; text-decoration: underline;">I</a><a href="https://en.wikipedia.org/wiki/Three_Laws_of_Robotics" rel="noopener noreferrer" target="_blank" style="font-size: 14px; color: rgb(54, 97, 189); font-family: Calibri, Helvetica, Arial, sans-serif; font-weight: normal; font-style: normal; text-decoration: underline;">saac Asimov’s Three Laws of Robotics</a><span style="font-size: 14px; color: rgb(102, 102, 102); font-family: Calibri, Helvetica, Arial, sans-serif;">, a timely reminder of what it felt like for </span><a href="http://www.businessinsider.sg/garry-kasparov-talks-about-artificial-intelligence-2017-12/?r=US&IR=T" rel="noopener noreferrer" target="_blank" style="font-size: 14px; color: rgb(54, 97, 189); font-family: Calibri, Helvetica, Arial, sans-serif; font-weight: normal; font-style: normal; text-decoration: underline;">Garry Kasparov to lose to Big Blue</a><span style="font-family: Calibri, Helvetica, Arial, sans-serif;">. </span><span style="font-size: 14px; color: rgb(102, 102, 102); font-family: Calibri, Helvetica, Arial, sans-serif;">And for the nay-sayers out there, here’s a list of </span><a href="https://www.pcworld.com/article/155984/worst_tech_predictions.html" rel="noopener noreferrer" target="_blank" style="font-size: 14px; color: rgb(102, 102, 102); font-family: Calibri, Helvetica, Arial, sans-serif; font-weight: normal; font-style: normal; text-decoration: underline;">t</a><a href="https://www.pcworld.com/article/155984/worst_tech_predictions.html" rel="noopener noreferrer" target="_blank" style="font-size: 14px; color: rgb(54, 97, 189); font-family: Calibri, Helvetica, Arial, sans-serif; font-weight: normal; font-style: normal; text-decoration: underline;">he seven worst tech predictions of all time</a><span style="font-size: 14px; color: rgb(102, 102, 102); font-family: Calibri, Helvetica, Arial, sans-serif;">, </span>
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<span class="article-heading-text" style="font-size: 18px; font-weight: bold; color: #000000;">Steve Stine | LinkedIn</span><br>
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<span>Check out professional insights posted by Steve Stine, Senior Regional Leadership Advisor and INSIDE ASIA radio talk show host</span><br>
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