To what extent will technology change us all? In today’s constantly evolving world of work, where robotics, artificial intelligence and the internet of things are buzzwords, it is easy to forget that automation has been around for more than a hundred years.

According to the Association for Manufacturing Technology (AMT) “Automation technology used in industry has evolved from conveyor belts used since the late 19th century to move coal, ore, and other raw materials, to automated material handling (AMH) systems that provide multiple types of movement and functionality, to industrial robots – robotic arms – introduced in the mid-20th century, which continue to grow in use throughout the manufacturing industry as prices come down and advanced end of arm tooling (EOAT) and sensors expand their functionality and intelligence.”

For all the misgivings about automation, the world is a better place today because of disruptive technological advances.

In its 2017 report titled ‘A future that works: Automation, Employment and Productivity’, McKinsey reports that automation will have wide-ranging effects, across geographies and sectors in the years ahead:

“Although automation is a global phenomenon, four economies—China, India, Japan, and the United States—account for just over half of the total wages and almost two-thirds the number of employees associated with activities that are technically automatable”.

It continues: “Within countries, automation potential will be affected by their sector mix, and the mix of activities within sectors. For example, industries such as manufacturing and agriculture include predictable physical activities that have a high technical potential to be automated, but lower wage rates in some developing countries could constrain adoption.”

McKinsey highlights factors “that will influence the pace and extent” of the adoption of automation in countries as:

1. Technical feasibility
2. Cost
3. Labor market dynamics
4. Economic benefits
5. Regulatory and social acceptance

“Although much of the current debate about automation focuses on the potential for mass unemployment, predicated on a surplus of human labor, the world’s economy will actually need every erg of human labor working, in addition to the robots, to overcome demographic aging trends in both developed and developing economies.”

In it’s conclusion, McKinsey posits that automation “will change the organization of companies, the structure and bases of competition of industries, and business models.”

Clearly, automation will change the way we work, with significant implications for organizations and nations. In a world where humans increasingly seek to get the most from the least expenditure of effort, sustainable competitive advantage may be tied to the rate of adoption of automation technology. For developing countries, this is both an opportunity and a threat.