Artificial Intelligence impact on Human Labor

Rapid advances in artificial intelligence (AI) and automation technologies have the
potential to significantly disrupt labor markets. While AI and automation can augment
the productivity of some workers, they can replace the work done by others and will
likely transform almost all occupations at least to some degree.
While technology generally increases productivity, AI may diminish some of today’s
valuable employment opportunities. Consequently, researchers and policy makers worry
about the future of work in both advanced and developing economies worldwide. As an
example, China is making AI-driven technology the centerpiece of its economic development
plan. Automation concerns are not new to AI, and examples date back even to the advent of
written language. In ancient Greece (ca. 370 BC), Plato’s Phaedrus described how writing
would displace human memory and reading would substitute true knowledge with mere data.
More commonly, historians point to the Industrial Revolution and the riots of 19th-century
Luddites as examples where technological advancement led to social unrest.

Wassily Leontief, winner of the 1973 Nobel Prize in Economics, noted in 1952, “Labor
will become less and less important. . . More workers will be replaced by machines. I do
not see that new industries can employ everybody who wants a job”.

A two-year study from McKinsey Global Institute suggests that by 2030, intelligent
agents and robots could replace as much as 30 percent of the world's current human
labor.

Contrasting Perspectives:
1. Doomsayer’s Perspective- Technology improves to make human labor more
efficient, but large improvements may yield deleterious effects for employment. This
obsoletion through labor substitution leads many to worry about “technological
unemployment” and motivates efforts to forecast AI’s impact of jobs. One study
assessed recent developments in AI to conclude that 47% of current US employment
is at high risk of computerization.
2. Optimist’s Perspective- Optimists suggest that technology may substitute for some
types of labor but that efficiency gains from technological augmentation outweigh
transition costs, and, in many cases, technology increases employment for workers
who are in not direct competition with it. Furthermore, the skill requirements of each
job title are not static and actually evolve over time to reflect evolving labor needs.
For example, workers may require more social skills because those skills remain
difficult to automate. Even if technology depresses employment for some types of
labor, it can create new needs and new opportunities through “creative destruction”.
3. Unifying Perspectives- On one hand, multiple dynamics accompany technological
change and create uncertainty about the future of work. On the other hand, experts
agree that occupations are best understood as abstract bundles of skills and that
technology directly impacts demand for specific skills instead of acting on whole
occupations all at once. Therefore, a detailed framework that connects specific skill
types to career mobility and to whole urban workforces may help to unify competing
perspectives .
In conclusion, it can be said that, the pace in which AI will replace jobs will only accelerate,
impacting the highly trained and poorly educated alike. Accountants, factory workers,
truckers, paralegals, and radiologists — just to name a few — will be confronted by a
disruption akin to that faced by farmers during the Industrial Revolution.
According to US bureau of Labour Statistics, AI will have a significant impact on human
labour.
 Employment of bookkeepers is projected to decline 1.5 percent from 2016 to 2026,
representing a loss of 25,200 jobs.
 Employment of tellers is projected to decrease 8.3 percent from 2016 to 2026,
amounting to a loss of 41,800 jobs. Automation technology is reducing demand for
tellers in a number of ways. First, online and mobile banking allows customers to
perform routine transactions, such as depositing a check electronically. Second,
because a trip to a bank branch is no longer required for these transactions, banks are
reducing their numbers.
 Employment of personal financial advisors, one of the high-demand occupations
discussed earlier, also is being affected by automation.

AI Impact on Social Equity

Voluminous research has been performed on artificial intelligence. However, AI literature
fails to address the resulting inequity in the "new world" that is expected to emanate from it.
But, P.K. Agarwal's book released in 2018 broke this and addressed social equity explicitly.
As explained in his work, social equity inquiry into the AI phenomenon is imperative.
Artificial intelligence is taking on a more central role in high-stakes decision-making within
our most critical social institutions. It has entered into our hospitals, courthouses, and
employment offices, deciding who gets insurance, who receives parole, and who gets hired.
While in many cases use of AI is intended to increase efficiency and effectiveness by
overcoming errors and biases inherent in human decision-making, risks of algorithmic bias—
when an algorithm takes on the prejudices of its creators or the data it is fed—may amplify
discrimination, not correct for it.

It is important to recognize that these algorithms are not neutral. They reflect the data and
assumptions inherent in their calculations. If prejudiced data is fed into an algorithm or
factors that reflect existing social biases are prioritized, discriminatory results will follow.
Algorithms function by prioritizing certain factors—identifying statistical patterns from
observed and latent variables and subsequently offering “if this, then that” conclusions. By
assuming that certain factors are appropriate predictors of an outcome and historical trends
will be repeated, an algorithm can exhibit a self-reinforcing bias. For those who are over-,
under- or misrepresented in the data and calculations, decisions made on their behalf can
perpetuate inequality.

For instance, predictive policing models in historical crime records, including date, time, and
location to generate predicted crime hotspots. Since minority and low-income communities
are far more likely to have been surveilled by police than prosperous white neighbourhoods
in the US, historical crime data at the core of predictive policing will provide a biased picture,
presenting higher crime rates in communities that have been more heavily patrolled. As a
result, predictive policing may amplify racial bias by perpetuating surveillance of minority
and low-income communities.

In the case of health insurance, insurers can now predict an individual’s future health
risks through the combination of thousands of non-traditional “third party” data sources, such
as buying history and the health of their neighbours. While use of this data may accurately
predict risk for the insurer, this also means that at-risk individuals may be charged premiums
they cannot afford or will be denied coverage altogether. For those living in communities that
have faced systemic health challenges, these predictive models may serve to perpetuate
health disparities.

As AI is increasingly applied to make consequential decisions that affect social, political, and
economic rights, it is imperative that we ensure these systems are built and applied in ways
that uphold principles of fairness, accountability, and transparency. There are two ways to
better ensure these principles are embedded into AI, leading not only to more efficient but
also more equitable decision-making.

AI can thus promote as well as hamper social equity depending on whether the creator’s bias
is inherent in its core infrastructure which can be mitigated by using Social-Systems Analysis
and ensure a more equitable world.

Incorporating diversity at every stage may also help in promoting equitable distribution
of resources in the society.

Diversity should be incorporated at every stage of the AI process, from design and
deployment to questioning its impacts on decision-making. Research has shown that more
diverse teams are more efficient at problem solving, regardless of cumulative IQ. Explicit
attention to inclusivity in design, application, and evaluation of the effects of AI-enabled
decision-making will not only minimize inadvertent discriminatory effects, but can also lead
to its design and application as a driving force for greater social, economic, and political
inclusion.

Artificial intelligence is at an inflection point. Its development and application can lead to
unprecedented benefits for global challenges such as climate change, food insecurity,
healthcare, and education. But its application must be carefully managed, ensuring it leads to
a more equitable digital economy and society, not a more discriminatory one.

AI Impact on Law

Justice DY Chandrachud in an interview, said that,

"The idea of Artificial Intelligence is not to supplant the human brain or the human mind
or the presence of judges but to provide a facilitative tool to judges to reassess the
processes which they follow, to reassess the work which they do and to ensure that their
outcome are more predictable and consistent and ultimately provide wider access to justice
to the common citizens."

The Indian legal sector has seen very little innovation in terms of technology and lawyers
these days still comfortable and relying on the methods and solutions that were designed
years ago. Artificial intelligence can play a big part in changing the way lawyers operate and
the law is looked at in India.
The growth of AI in the Indian legal field has been subdued. According to a study, only about
4% of lawyers in India make use of AI for their work. Cyril Amarchand Mangaldas is
perhaps the first law firm in India to adopt AI which is primarily used to analyse and
improvise contractual and other legal documents.

One of the biggest disruptions that can be caused by Artificial Intelligence in law is that in
the field of legal research. The Indian legal system is vast and constantly changing and with
the use of Artificial Intelligence, lawyers can get unparalleled insight into the legal domain
within seconds.
Presently, some of the startups supported by Tier-1 Law firms in their incubators involve
innovative ideas of using AI in legal research and decision systems. A slew of Indian tech
startups like SpotDraft, CaseMine, NearLaw, Pensieve, Practice League etc. are building
NLP(Natural Language Processing) based applications and are introducing next- generation
legal research platforms which help law firms to go beyond simple, keyword based research
thereby making it less time consuming.

In order to maintain their positions in the legal industry, future Law Firms would have to
change the way they work today and will be completely different from what we tend to see
these days. Let’s shed some light on a few characteristics of what the advanced law firms
would be like:
1. Innovations in servicing clients:
The way clients are serviced and treated would drastically change in the future. To service
their clients better, law firms would look at innovating their pricing strategies and implement
say a Performance-Based Pricing Strategy [PBPS]: As the name suggests, this pricing model
would be extremely client friendly as client shall only pay once they achieve targets and same
would strengthen the professional relations between the clients and Law Firms.

2. Focus from Revenue to Higher profits:

Nowadays Law Firms have focused on increasing revenue and if we look closely the
competition between law firms have constantly been increasing and the demand for legal
services has been stagnant making growth in revenue extremely difficult.

3. Making Technology the foundation for growth:

Artificially Intelligence based legal solutions help law firms become more efficient and
possibly reduce costs and gain higher profits. The future law firm would not only adopt these
technologies but will also work in synergies with various companies to build AI-based
solutions that could further improve the legal sector.

4. High focus on brand value:

In future law firm would focus heavily on their brand presence. A piece of sloppy or
negligent advice from just a few people can easily damage a firm's reputation therefore in
order to develop the brand value law firm need to rely on AI-based legal solutions and
platform and tech-savvy lawyers.
It is believed that artificial intelligence has great scope for Indian Legal Sector and a
combination of artificial intelligence and law will witness immense growth in the near future.
Currently, there are many fields or arena in which artificial intelligence in law is proving to
be useful these are as follows:

 Due Diligence -To review a contract, conduct legal research or performing electronic
discovery functions to do due diligence, AI legal software are proving to be helpful
and time effective.
 Prediction Technology- Artificial intelligence legal software also predicts the
probable outcome of the cases being adjudicated before the Court of Law.
 Legal Analytics- Artificial Intelligence provides for the data points from past case
laws, and also provides judgements and precedent law to be used by lawyers in their
present cases.
 Automation of Documentation- By just submitting the required documents which
you wish to incorporate in your legal document get your documents ready within
minutes.
 Intellectual Property- Tools of artificial intelligence helps in providing the insights
into the IP portfolios i.e. search and registration of a trademark, Patent, Copyrights
etc.
 Electronic Billing- Artificial intelligence legal software also helps the lawyer and
Firms in preparing the invoices as per the work done by them. It makes for accurate
billing for the work done by a lawyer. Thus, helps both lawyers and clients.