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Business

The Robots Are Coming for Phil in Accounting

The robots are coming. Not to kill you with lasers, or beat you in chess, or even to ferry you around town in a driverless Uber.

These robots are here to merge purchase orders into columns J and K of next quarter’s revenue forecast, and transfer customer data from the invoicing software to the Oracle database. They are unassuming software programs with names like “Auxiliobits — DataTable To Json String,” and they are becoming the star employees at many American companies.

Some of these tools are simple apps, downloaded from online stores and installed by corporate I.T. departments, that do the dull-but-critical tasks that someone named Phil in Accounting used to do: reconciling bank statements, approving expense reports, reviewing tax forms. Others are expensive, custom-built software packages, armed with more sophisticated types of artificial intelligence, that are capable of doing the kinds of cognitive work that once required teams of highly-paid humans.

White-collar workers, armed with college degrees and specialized training, once felt relatively safe from automation. But recent advances in A.I. and machine learning have created algorithms capable of outperforming doctors, lawyers and bankers at certain parts of their jobs. And as bots learn to do higher-value tasks, they are climbing the corporate ladder.

The trend — quietly building for years, but accelerating to warp speed since the pandemic — goes by the sleepy moniker “robotic process automation.” And it is transforming workplaces at a pace that few outsiders appreciate. Nearly 8 in 10 corporate executives surveyed by Deloitte last year said they had implemented some form of R.P.A. Another 16 percent said they planned to do so within three years.

Most of this automation is being done by companies you’ve probably never heard of. UiPath, the largest stand-alone automation firm, is valued at $35 billion — roughly the size of eBay — and is slated to go public later this year. Other companies like Automation Anywhere and Blue Prism, which have Fortune 500 companies like Coca-Cola and Walgreens Boots Alliance as clients, are also enjoying breakneck growth, and tech giants like Microsoft have recently introduced their own automation products to get in on the action.

Executives generally spin these bots as being good for everyone, “streamlining operations” while “liberating workers” from mundane and repetitive tasks. But they are also liberating plenty of people from their jobs. Independent experts say that major corporate R.P.A. initiatives have been followed by rounds of layoffs, and that cutting costs, not improving workplace conditions, is usually the driving factor behind the decision to automate.

Craig Le Clair, an analyst with Forrester Research who studies the corporate automation market, said that for executives, much of the appeal of R.P.A. bots is that they are cheap, easy to use and compatible with their existing back-end systems. He said that companies often rely on them to juice short-term profits, rather than embarking on more expensive tech upgrades that might take years to pay for themselves.

“It’s not a moonshot project like a lot of A.I., so companies are doing it like crazy,” Mr. Le Clair said. “With R.P.A., you can build a bot that costs $10,000 a year and take out two to four humans.”

Covid-19 has led some companies to turn to automation to deal with growing demand, closed offices, or budget constraints. But for other companies, the pandemic has provided cover for executives to implement ambitious automation plans they dreamed up long ago.

“Automation is more politically acceptable now,” said Raul Vega, the chief executive of Auxis, a firm that helps companies automate their operations.

Before the pandemic, Mr. Vega said, some executives turned down offers to automate their call centers, or shrink their finance departments, because they worried about scaring their remaining workers or provoking a backlash like the one that followed the outsourcing boom of the 1990s, when C.E.O.s became villains for sending jobs to Bangalore and Shenzhen.

But those concerns matter less now, with millions of people already out of work and many businesses struggling to stay afloat.

Now, Mr. Vega said, “they don’t really care, they’re just going to do what’s right for their business,” Mr. Vega said.

Sales of automation software are expected to rise by 20 percent this year, after increasing by 12 percent last year, according to the research firm Gartner. And the consulting firm McKinsey, which predicted before the pandemic that 37 million U.S. workers would be displaced by automation by 2030, recently increased its projection to 45 million.

Not all bots are the job-destroying kind. Holly Uhl, a technology manager at State Auto Insurance Companies, said that her firm has used automation to do 173,000 hours’ worth of work in areas like underwriting and human resources without laying anyone off.

“People are concerned that there’s a possibility of losing their jobs, or not having anything to do,” she said. “But once we have a bot in the area, and people see how automation is applied, they’re truly thrilled that they don’t have to do that work anymore.”

As bots become capable of complex decision-making, rather than doing single repetitive tasks, their disruptive potential is growing.

Recent studies by researchers at Stanford University and the Brookings Institution compared the text of job listings with the wording of A.I.-related patents, looking for phrases like “make prediction” and “generate recommendation” that appeared in both. They found that the groups with the highest exposure to A.I. were better-paid, better-educated workers in technical and supervisory roles, with men, white and Asian-American workers, and midcareer professionals being some of the most endangered. Workers with bachelor’s or graduate degrees were nearly four times as exposed to A.I. risk as those with just a high school degree, the researchers found, and residents of high-tech cities like Seattle and Salt Lake City were more vulnerable than workers in smaller, more rural communities.

“A lot of professional work combines some element of routine information processing with an element of judgment and discretion,” said David Autor, an economist at M.I.T. who studies the labor effects of automation. “That’s where software has always fallen short. But with A.I., that type of work is much more in the kill path.”

Many of those vulnerable workers don’t see this coming, in part because the effects of white-collar automation are often couched in jargon and euphemism. On their websites, R.P.A. firms promote glowing testimonials from their customers, often glossing over the parts that involve actual humans.

“Sprint Automates 50 Business Processes In Just Six Months.” (Possible translation: Sprint replaced 300 people in the billing department.)

“Dai-ichi Life Insurance Saves 132,000 Hours Annually” (Bye-bye, claims adjusters.)

“600% Productivity Gain for Credit Reporting Giant with R.P.A.” (Don’t let the door hit you, data analysts.)

Jason Kingdon, the chief executive of the R.P.A. firm Blue Prism, speaks in the softened vernacular of displacement too. He refers to his company’s bots as “digital workers,” and he explained that the economic shock of the pandemic had “massively raised awareness” among executives about the variety of work that no longer requires human involvement.

“We think any business process can be automated,” he said.

Mr. Kingdon tells business leaders that between half and two-thirds of all the tasks currently being done at their companies can be done by machines. Ultimately, he sees a future in which humans will collaborate side-by-side with teams of digital employees, with plenty of work for everyone, although he conceded that the robots have certain natural advantages.

“A digital worker,” he said, “can be scaled in a vastly more flexible way.”

Humans have feared losing our jobs to machines for millennia. (In 350 BCE, Aristotle worried that self-playing harps would make musicians obsolete.) And yet, automation has never created mass unemployment, in part because technology has always generated new jobs to replace the ones it destroyed.

During the 19th and 20th centuries, some lamplighters and blacksmiths became obsolete, but more people were able to make a living as electricians and car dealers. And today’s A.I. optimists argue that while new technology may displace some workers, it will spur economic growth and create better, more fulfilling jobs, just as it has in the past.

But that is no guarantee, and there is growing evidence that this time may be different.

In a series of recent studies, Daron Acemoglu of M.I.T. and Pascual Restrepo of Boston University, two well-respected economists who have researched the history of automation, found that for most of the 20th century, the optimistic take on automation prevailed — on average, in industries that implemented automation, new tasks were created faster than old ones were destroyed.

Since the late 1980s, they found, the equation had flipped — tasks have been disappearing to automation faster than new ones are appearing.

This shift may be related to the popularity of what they call “so-so automation” — technology that is just barely good enough to replace human workers, but not good enough to create new jobs or make companies significantly more productive.

A common example of so-so automation is the grocery store self-checkout machine. These machines don’t cause customers to buy more groceries, or help them shop significantly faster — they simply allow store owners to staff slightly fewer employees on a shift. This simple, substitutive kind of automation, Mr. Acemoglu and Mr. Restrepo wrote, threatens not just individual workers, but the economy as a whole.

“The real danger for labor,” they wrote, “may come not from highly productive but from ‘so-so’ automation technologies that are just productive enough to be adopted and cause displacement.”

Only the most devoted Luddites would argue against automating any job, no matter how menial or dangerous. But not all automation is created equal, and much of the automation being done in white-collar workplaces today is the kind that may not help workers over the long run.

During past eras of technological change, governments and labor unions have stepped in to fight for automation-prone workers, or support them while they trained for new jobs. But this time, there is less in the way of help. Congress has rejected calls to fund federal worker retraining programs for years, and while some of the money in the $1.9 trillion Covid-19 relief bill Democrats hope to pass this week will go to laid-off and furloughed workers, none of it is specifically earmarked for job training programs that could help displaced workers get back on their feet.

Another key difference is that in the past, automation arrived gradually, factory machine by factory machine. But today’s white-collar automation is so sudden — and often, so deliberately obscured by management — that few workers have time to prepare.

“The rate of progression of this technology is faster than any previous automation,” said Mr. Le Clair, the Forrester analyst, who thinks we are closer to the beginning than the end of the corporate A.I. boom.

“We haven’t hit the exponential point of this stuff yet,” he added. “And when we do, it’s going to be dramatic.”

The corporate world’s automation fever isn’t purely about getting rid of workers. Executives have shareholders and boards to satisfy, and competitors to keep up with. And some automation does, in fact, lift all boats, making workers’ jobs better and more interesting while allowing companies to do more with less.

But as A.I. enters the corporate world, it is forcing workers at all levels to adapt, and focus on developing the kinds of distinctly human skills that machines can’t easily replicate.

Ellen Wengert, a former data processor at an Australian insurance firm, learned this lesson four years ago, when she arrived at work one day to find a bot-builder sitting in her seat.

The man, coincidentally an old classmate of hers, worked for a consulting firm that specialized in R.P.A. He explained that he’d been hired to automate her job, which mostly involved moving customer data from one database to another. He then asked her to, essentially, train her own replacement — teaching him how to do the steps involved in her job so that he, in turn, could program a bot to do the same thing.

Ms. Wengert wasn’t exactly surprised. She’d known that her job was straightforward and repetitive, making it low-hanging fruit for automation. But she was annoyed that her managers seemed so eager to hand it over to a machine.

“They were desperate to create this sense of excitement around automation,” she said. “Most of my colleagues got on board with that pretty readily, but I found it really jarring, to be feigning excitement about us all potentially losing our jobs.”

For Ms. Wengert, 27, the experience was a wake-up call. She had a college degree and was early in her career. But some of her colleagues had been happily doing the same job for years, and she worried that they would fall through the cracks.

“Even though these aren’t glamorous jobs, there are a lot of people doing them,” she said.

She left the insurance company after her contract ended. And she now works as a second-grade teacher — a job she says she sought out, in part, because it seemed harder to automate.

Kevin Roose, a technology columnist at The Times, is the author of the new book “Futureproof: 9 Rules for Humans in the Age of Automation,” from which this essay is adapted.

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Business

Recognition of leisure robots grows amid pandemic

The Gundam warrior robot in Yokogama’s Ymahita Habor is a major attraction for Japanese sci-fi fans.

Photo: Tim Hornyak

When Boston Dynamics released its latest video of its robots defying gravity, this time dancing to The Contours “Cont You Love Me,” the internet was excited. A YouTube clip of Atlas and Spot robots moving with balletical fluidity has generated over 23 million views and countless warnings since Dec. 30 that the Terminator series Skynet is approaching. Boston Dynamics, which Hyundai Motor Group is acquiring from SoftBank Group, makes robots that are not only practical but also fun.

Robots that have long been used by companies like Walt Disney Imagineering are performing as entertainers, despite the introduction of different types of robots in the Covid-19 pandemic, which in a variety of ways to fight the virus and to help society and the economy can contribute – from providing automation in factories and warehouses to working as medical assistants in hospitals and nursing homes. As the world turns to vaccines and reopening economies, intelligent machines will play an increasingly public role as entertainers. According to the International Federation of Robotics (IFR), entertainment robots as a market could grow 10% annually through 2023 as more public venues include machines that don’t get tired, get sick, or need to be quarantined.

The IFR classifies entertainment robots as a type of service robot, a broad category that encompasses everything from hospital delivery droids to edutainment robotic toys. The category grew 32% from $ 8.5 billion to $ 11.2 billion in 2019. Entertainment robot sales rose 13% to 4.6 million units in 2019, with a potential growth of 10% to 5 , 1 million units in 2020 and 6.7 million units in 2023. according to IFR.

Robot popular in Japan

One country that is making great strides in this emerging market is Japan, known for its skills in robotics. In 2018, Japan was the world’s leading manufacturer of industrial robots, supplying 52% of global supply according to the IFR. Japan has actively committed itself to robotics as its population shrinks, its workforce shrinks, and the coronavirus pandemic makes human interaction difficult.

Companies in Japan recently unveiled a giant robot that can move its arms and legs and appear to be walking. The machine is nearly 60 feet tall and about half the height of the copper Statue of Liberty. It is inspired by the science fiction series by Gundam and attracts fans in Japan and on the internet.

Just south of Tokyo, the Gundam Factory Yokohama recently opened as the culmination of a long-term project to build a life-size, mobile version of the Mobile Suit Gundam’s title robot. Yoshiyuki Tomino’s hugely successful anime franchise spawned a merchandise empire that now has annual sales of approximately 78 billion yen ($ 758 million). The series is a sprawling science fiction epic in which humans control giant robots in a space war. While other representations of Gundam robots have been erected since 2009, the one in Yokohama is the result of the Gundam Global Challenge (GGC), an attempt to create a giant, full-size robot that can walk.

When it’s showtime, the Gundam robot appears to slowly step forward, bend its knees, and then get up on a launch pad for a rocket. Bathed in mist and dramatic light, it raises its arms while touching music fills the air. The 25-ton colossus appears to take off over the port city at dusk, but never leaves its supporting portal. The whole setup is a sophisticated sound and light show to create the illusion that the Gundam robot has been kind of brought to life. And that’s good enough for legions of fans who pay 1,650 yen ($ 16) to see it from the ground or 3,300 yen ($ 32) to access the portal.

“The sight of the 18-meter giant run was a surprise that I had never seen in my life,” says a Gundam fan, who is nicknamed Yokkun and asks for anonymity. “It’s like you’re a crew member on the [Gundam spaceship] White base. You won’t get bored no matter how many times you see it. Going up the tower for a close up is a must. “

“No one has ever seen an 18-meter-long Gundam statue move like this, and I think that’s very important,” said Yasuo Miyakawa, associate director of GGC and CEO of Bandai Namco, the nearly 700 million Gundam model kits The decades since the series debuted in 1979. “It’s a new form of entertainment, showing what was created in the anime – that is, the world that is seen in the videos – is closer to reality . “

In a message to the fans, director Tomino apologized that the huge machine could not run due to its large mass. Nevertheless, fans have come to see the “moving Gundam”, to take photos, to have something to eat in the hotel’s own café and of course to buy goods in the souvenir shop, which even sells model kits of the Yokohama Gundam and its portal. A showroom details how nine Japanese companies came together to build the robot, including contractor Kawada Group who assembled the portal, industrial robot manufacturer Yaskawa Electric who made the motors and control units, and engineering firm Nabtesco who made the reduction gears provided get the gundam moving.

Serve food, drink and laugh

Robots as a point of attraction for guests and tourists are establishing themselves in Asia. Tokyo’s Robot Restaurant was built in 2012 by the Morishita Group at a cost of around 10 billion yen ($ 125 million) and was regularly packed with tourists and locals seeing performers mess around with robotic dinosaurs, LED-lit tanks, and other gadgets a 90-minute cabaret with sensory overload.

While the coronavirus forced the temporary closure of the Robot Restaurant, other companies are mobilizing droids despite and even because of the pandemic. Last summer, a subsidiary of real estate developer Country Garden Holdings opened a restaurant complex in Guangdong Province, China, operated by 20 robots, some of which feature colorful designs and cartoonish faces. Aside from the novelty factor of being machine operated, the facility minimizes human contact and possible infection. In addition, the robots can prepare meals such as hot pot and pasta dishes from a menu with hundreds of choices in just 20 seconds. The company bills the 21,500-square-foot complex with a capacity for nearly 600 people as the world’s first of its kind and announced plans to expand it to produce around 5,000 restaurant robots per year.

In 2019, developers unveiled Gyeongnam Masan Robot Land in South Korea, to be marketed as the first robot theme park of its kind. Robot Land cost around $ 700 million to build and took 10 years to build. It offers 22 rides, 11 other facilities, research and development and convention centers, as well as around 250 robots that do everything from assembly line work to synchronized dances.

The entrance of Gyeongnam Masan Robot Land in South Korea.

Source: Star Networks

Robots also entertain people in much smaller spaces. Toy-like devices like Sony’s Aibo robot dog have won fans for decades, while SoftBank Robotics’ pintsized humanoid NAO, used in the Standard Platform League of the international RoboCup soccer tournament, also does stand-up comedy. Introduced during the pandemic, Moxie is a $ 1,499 tabletop robot embodied by the Californian startup that is designed to help children ages 5 to 10 develop their social skills through fun interaction. Backed by investors such as Amazon, Intel, Sony and Toyota, Embodied is led by Paolo Pirjanian, who said in a blog post by Toyota AI Ventures, “Moxie allows kids to play meaningful games every day with content informed about the best practices in the world child development and early childhood education. “

A humanoid NAO robot developed by Softbank Corp. subsidiary Aldebaran Robotics SA.

Kiyoshi Ota | Bloomberg | Getty Images

Large industrial robot manufacturers also rely on entertainment robots. The German KUKA produces industrial robot arms that can be used to assemble cars, trains, solar panels and other vehicles and infrastructures. But it has also worked with partners like Milan-based beverage maker Makr Shakr to create a fully automated cocktail bar called Toni. The two robot arms reach for beverage ingredients embedded in the ceiling, shake and stir before the finished cocktail is placed on the counter. Toni is considered the world’s first robot bar for the mass market and can serve up to 80 drinks an hour. Industrial robots can also be used for more hands-on experience.

“Our portfolio includes robot-based rides,” says spokeswoman Teresa Fischer, referring to the KUKA Coaster, which can whirl people around in the air. “Here, KUKA offers special robots that have been specially developed for the transport of passengers. They combine the options of action-packed entertainment with the high demands on safety when working with people. In this way, a wide variety of trips can be made to measure, for example in Amusement and theme parks. “

Joanne Pransky, a California-based robotics expert who helped KUKA launch the coaster, notes that many people already spend more time talking to a device than other people. She sees great potential for robots as entertainers.

“Worldwide, the acceptance and use of robotics has particularly catapulted due to Covid and the lack of available people,” says Pransky, who also claims to be the world’s first robotics psychiatrist. “The increasing public acceptance of robots, coupled with the exponential technological increase in the capabilities of robots, will result in societies becoming increasingly accustomed to robots entertaining them, which will further fuel the market for robot entertainment.”