Smart machines to have deep business impact through 2020
TweetFollow Us on Twitter

Smart machines to have deep business impact through 2020

Sixty percent of CEOs believe that the emergence of smart machines capable of absorbing millions of middle-class jobs within 15 years is a "futurist fantasy," according to Gartner's 2013 CEO survey. However, Gartner (www.gartner.com) predicts that smart machines will have widespread and deep business impact within only seven years through 2020.

"Most business and thought leaders underestimate the potential of smart machines to take over millions of middle-class jobs in the coming decades," says Kenneth Brant, research director at Gartner. "Job destruction will happen at a faster pace, with machine-driven job elimination overwhelming the market's ability to create valuable new ones."

CIOs must change their mission to address the proliferation of smart machines in a widening range of jobs and consider the impact this trend might have on their career paths and on increasing levels of unemployment, according to Gartner's latest "Maverick" research.

The research group says that machines are evolving from automating basic tasks to becoming advanced self-learning systems as capable as the human brain in many highly specialized professions. As such, the next wave of job losses will likely occur among highly valued specialists during the next decade. Gartner research has found that many CEOs are failing to recognize the widespread and deep business impact that smart machines will have through 2020.

"The bottom line is that many CEOs are missing what could quickly develop to be the most significant technology shift of this decade," says Brant. "In fact, even today, there is already a multifaceted marketplace for engineering a 'digital workforce,' backed by major players on both the supply and demand side. This marketplace comprises intelligent agents, virtual reality assistants, expert systems and embedded software to make traditional machines 'smart' in a very specialized way, plus a new generation of low-cost and easy-to-train robots and purpose-built automated machines that could significantly devalue and/or displace millions of humans in the workforce."

Gartner believes that the capability and reliability of smart machines will dramatically increase through 2020 to the point where they will have a major impact on business and IT functions. The impact will be such that firms that have not begun to develop programs and policies for a "digital workforce" by 2015 will not perform in the top quartile for productivity and operating profit margin improvement in their industry by 2020. As a direct result, the careers of CIOs who do not begin to champion digital workforce initiatives with their peers in the C-suite by 2015 will be cut short by 2023.

A number of forces are colluding to make this threat a reality, not least the fact that the technologies for building a large-scale and diverse scope of smart machines are coalescing and being tested by "first movers." At the same time ongoing weak revenue growth in the global economy will spur demand for cost reduction and productivity improvement by employing smart machines in place of humans.

"It's worth remembering that IT cost is typically about four percent of annual revenue, whereas the labor costs that can be rationalized by smart machines are as high as 40% of revenue in some knowledge and service industries," says Brant. "The supply side of the market -- including IBM, GE, Google, Microsoft, Apple and Amazon -- is placing large bets on the success of smart machines, while the demand side includes high-profile first movers that will trigger an 'arms race' for acquiring and/or developing smart machines."

 
AAPL
$132.54
Apple Inc.
+2.26
GOOG
$554.40
Google Inc.
-10.66
MSFT
$47.92
Microsoft Corporation
+0.05
MacNews Search:
Community Search:
view counter

view counter
view counter
view counter
view counter
view counter
view counter

Discover Your Reflexes With Minimalist G...
Discover O, BYOF Studios, may look simple at first with its' color matching premise and swipe controls, but as you speed up the task becomes more daunting. [Read more] | Read more »
Here's Another Roundup of Notable A...
Now that the Apple Watch is publically available (kind of), even more apps and games have been popping up for it. Some of them are updates to existing software, others are brand new. The main thing is that they're all for the Apple Watch, and if you're looking to expand the wearable's library then we've got a list for you. Our previous list is... | Read more »
Use Batting Average and the Apple Watch...
Batting Average, by Pixolini, is designed to help you manage your statistics. Every time you go to bat, you can use your Apple Watch to track  your swings, strikes, and hits. [Read more] | Read more »
Celebrate Studio Pango's 3rd Annive...
It is time to party, Pangoland pals! Studio Pango is celebrating their 3rd birthday and their gift to you is a new update to Pangoland. [Read more] | Read more »
Become the World's Most Important D...
Must Deliver, by cherrypick games, is a top-down endless-runner witha healthy dose of the living dead. [Read more] | Read more »
SoundHound + LiveLyrics is Making its De...
SoundHound Inc. has announced that SoundHound + LiveLyrics, will be one of the first third-party apps to hit the Apple Watch. With  SoundHound you'll be able to tap on your watch and have the app recognize the music you are listening to, then have the lyrics scroll across the screen in time with the song. As you listen to more music the app will... | Read more »
Adobe Joins the Apple Watch Lineup With...
A whole tidal wave of apps are headed for the Apple Watch, and Adobe has joined in with 3 new ways to enhance your creativity and collaborate with others. The watch apps pair with iPad/iPhone apps to give you total control over your Adobe projects. [Read more] | Read more »
Z Steel Soldiers, Sequel to Kavcom'...
Kavcom has released Z Steel Soldiers, which continues the story of the comedic RTS originally created by the Bitmap Brothers. [Read more] | Read more »
Seene Lets You Create 3D Images With You...
Seene, by Obvious Engineering, is a 3D capture app that's meant to allow you to create visually stunning 3D images with a tap of your finger, and then share them as a 3D photo, video or gif. [Read more] | Read more »
Lost Within - Tips, Tricks, and Strategi...
Have you just downloaded Lost Within and are you in need of a guiding hand? While it’s not the toughest of games out there you might still want some helpful tips to get you started. [Read more] | Read more »
All contents are Copyright 1984-2010 by Xplain Corporation. All rights reserved. Theme designed by Icreon.