ABOUT THE SPEAKER
Daniel Susskind - Economist
Daniel Susskind explores the impact of technology, particularly artificial intelligence, on work and society.

Why you should listen

Daniel Susskind is the co-author, with Richard Susskind, of the best-selling book, The Future of the Professions, and a Fellow in Economics at Balliol College, Oxford University. He is currently finishing his latest book, on the future of work. Previously, he worked in the British Government -- as a policy adviser in the Prime Minister's Strategy Unit, as a policy analyst in the Policy Unit in 10 Downing Street, and as a senior policy adviser in the Cabinet Office. Susskind received a doctorate in economics from Oxford University and was a Kennedy Scholar at Harvard University.

More profile about the speaker
Daniel Susskind | Speaker | TED.com
TED@Merck KGaA, Darmstadt, Germany

Daniel Susskind: 3 myths about the future of work (and why they're not true)

Filmed:
1,519,249 views

"Will machines replace humans?" This question is on the mind of anyone with a job to lose. Daniel Susskind confronts this question and three misconceptions we have about our automated future, suggesting we ask something else: How will we distribute wealth in a world when there will be less -- or even no -- work?
- Economist
Daniel Susskind explores the impact of technology, particularly artificial intelligence, on work and society. Full bio

Double-click the English transcript below to play the video.

00:12
Automation anxiety
has been spreading lately,
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a fear that in the future,
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many jobs will be performed by machines
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rather than human beings,
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given the remarkable advances
that are unfolding
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in artificial intelligence and robotics.
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What's clear is that
there will be significant change.
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What's less clear
is what that change will look like.
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My research suggests that the future
is both troubling and exciting.
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The threat of technological
unemployment is real,
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and yet it's a good problem to have.
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And to explain
how I came to that conclusion,
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I want to confront three myths
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that I think are currently obscuring
our vision of this automated future.
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A picture that we see
on our television screens,
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in books, in films, in everyday commentary
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is one where an army of robots
descends on the workplace
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with one goal in mind:
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to displace human beings from their work.
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And I call this the Terminator myth.
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01:11
Yes, machines displace
human beings from particular tasks,
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01:15
but they don't just
substitute for human beings.
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They also complement them in other tasks,
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making that work more valuable
and more important.
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Sometimes they complement
human beings directly,
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making them more productive
or more efficient at a particular task.
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So a taxi driver can use a satnav system
to navigate on unfamiliar roads.
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01:35
An architect can use
computer-assisted design software
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to design bigger,
more complicated buildings.
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But technological progress doesn't
just complement human beings directly.
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It also complements them indirectly,
and it does this in two ways.
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The first is if we think
of the economy as a pie,
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technological progress
makes the pie bigger.
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01:55
As productivity increases,
incomes rise and demand grows.
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The British pie, for instance,
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is more than a hundred times
the size it was 300 years ago.
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And so people displaced
from tasks in the old pie
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could find tasks to do
in the new pie instead.
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02:12
But technological progress
doesn't just make the pie bigger.
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It also changes
the ingredients in the pie.
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As time passes, people spend
their income in different ways,
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changing how they spread it
across existing goods,
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and developing tastes
for entirely new goods, too.
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New industries are created,
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new tasks have to be done
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and that means often
new roles have to be filled.
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So again, the British pie:
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300 years ago,
most people worked on farms,
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150 years ago, in factories,
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and today, most people work in offices.
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And once again, people displaced
from tasks in the old bit of pie
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could tumble into tasks
in the new bit of pie instead.
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Economists call these effects
complementarities,
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but really that's just a fancy word
to capture the different way
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that technological progress
helps human beings.
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03:02
Resolving this Terminator myth
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shows us that there are
two forces at play:
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one, machine substitution
that harms workers,
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but also these complementarities
that do the opposite.
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Now the second myth,
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what I call the intelligence myth.
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What do the tasks of driving a car,
making a medical diagnosis
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and identifying a bird
at a fleeting glimpse have in common?
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Well, these are all tasks
that until very recently,
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leading economists thought
couldn't readily be automated.
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And yet today, all of these tasks
can be automated.
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You know, all major car manufacturers
have driverless car programs.
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There's countless systems out there
that can diagnose medical problems.
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And there's even an app
that can identify a bird
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at a fleeting glimpse.
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Now, this wasn't simply a case of bad luck
on the part of economists.
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They were wrong,
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and the reason why
they were wrong is very important.
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They've fallen for the intelligence myth,
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the belief that machines
have to copy the way
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that human beings think and reason
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in order to outperform them.
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When these economists
were trying to figure out
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what tasks machines could not do,
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they imagined the only way
to automate a task
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was to sit down with a human being,
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get them to explain to you
how it was they performed a task,
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and then try and capture that explanation
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in a set of instructions
for a machine to follow.
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This view was popular in artificial
intelligence at one point, too.
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I know this because Richard Susskind,
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who is my dad and my coauthor,
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wrote his doctorate in the 1980s
on artificial intelligence and the law
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at Oxford University,
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and he was part of the vanguard.
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And with a professor called Phillip Capper
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and a legal publisher called Butterworths,
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they produced the world's first
commercially available
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artificial intelligence system in the law.
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This was the home screen design.
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He assures me this was
a cool screen design at the time.
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(Laughter)
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I've never been entirely convinced.
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He published it
in the form of two floppy disks,
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at a time where floppy disks
genuinely were floppy,
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and his approach was the same
as the economists':
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sit down with a lawyer,
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get her to explain to you
how it was she solved a legal problem,
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and then try and capture that explanation
in a set of rules for a machine to follow.
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In economics, if human beings
could explain themselves in this way,
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the tasks are called routine,
and they could be automated.
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But if human beings
can't explain themselves,
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the tasks are called non-routine,
and they're thought to be out reach.
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Today, that routine-nonroutine
distinction is widespread.
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Think how often you hear people say to you
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machines can only perform tasks
that are predictable or repetitive,
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rules-based or well-defined.
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Those are all just
different words for routine.
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And go back to those three cases
that I mentioned at the start.
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Those are all classic cases
of nonroutine tasks.
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Ask a doctor, for instance,
how she makes a medical diagnosis,
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and she might be able
to give you a few rules of thumb,
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but ultimately she'd struggle.
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She'd say it requires things like
creativity and judgment and intuition.
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And these things are
very difficult to articulate,
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and so it was thought these tasks
would be very hard to automate.
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If a human being can't explain themselves,
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where on earth do we begin
in writing a set of instructions
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for a machine to follow?
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Thirty years ago, this view was right,
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but today it's looking shaky,
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and in the future
it's simply going to be wrong.
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Advances in processing power,
in data storage capability
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and in algorithm design
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mean that this
routine-nonroutine distinction
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is diminishingly useful.
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To see this, go back to the case
of making a medical diagnosis.
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Earlier in the year,
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a team of researchers at Stanford
announced they'd developed a system
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which can tell you
whether or not a freckle is cancerous
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as accurately as leading dermatologists.
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How does it work?
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It's not trying to copy the judgment
or the intuition of a doctor.
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It knows or understands
nothing about medicine at all.
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Instead, it's running
a pattern recognition algorithm
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through 129,450 past cases,
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hunting for similarities
between those cases
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and the particular lesion in question.
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It's performing these tasks
in an unhuman way,
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based on the analysis
of more possible cases
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than any doctor could hope
to review in their lifetime.
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It didn't matter that that human being,
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that doctor, couldn't explain
how she'd performed the task.
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Now, there are those
who dwell upon that the fact
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that these machines
aren't built in our image.
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As an example, take IBM's Watson,
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the supercomputer that went
on the US quiz show "Jeopardy!" in 2011,
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and it beat the two
human champions at "Jeopardy!"
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The day after it won,
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The Wall Street Journal ran a piece
by the philosopher John Searle
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with the title "Watson
Doesn't Know It Won on 'Jeopardy!'"
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Right, and it's brilliant, and it's true.
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You know, Watson didn't
let out a cry of excitement.
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It didn't call up its parents
to say what a good job it had done.
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It didn't go down to the pub for a drink.
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This system wasn't trying to copy the way
that those human contestants played,
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but it didn't matter.
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It still outperformed them.
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Resolving the intelligence myth
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shows us that our limited understanding
about human intelligence,
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about how we think and reason,
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is far less of a constraint
on automation than it was in the past.
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What's more, as we've seen,
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when these machines
perform tasks differently to human beings,
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there's no reason to think
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that what human beings
are currently capable of doing
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represents any sort of summit
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in what these machines
might be capable of doing in the future.
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Now the third myth,
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what I call the superiority myth.
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It's often said that those who forget
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about the helpful side
of technological progress,
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those complementarities from before,
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are committing something
known as the lump of labor fallacy.
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Now, the problem is
the lump of labor fallacy
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is itself a fallacy,
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and I call this the lump
of labor fallacy fallacy,
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or LOLFF, for short.
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Let me explain.
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The lump of labor fallacy
is a very old idea.
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It was a British economist, David Schloss,
who gave it this name in 1892.
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He was puzzled
to come across a dock worker
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who had begun to use
a machine to make washers,
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the small metal discs
that fasten on the end of screws.
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And this dock worker
felt guilty for being more productive.
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Now, most of the time,
we expect the opposite,
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that people feel guilty
for being unproductive,
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you know, a little too much time
on Facebook or Twitter at work.
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But this worker felt guilty
for being more productive,
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and asked why, he said,
"I know I'm doing wrong.
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I'm taking away the work of another man."
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In his mind, there was
some fixed lump of work
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to be divided up between him and his pals,
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so that if he used
this machine to do more,
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there'd be less left for his pals to do.
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Schloss saw the mistake.
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The lump of work wasn't fixed.
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As this worker used the machine
and became more productive,
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the price of washers would fall,
demand for washers would rise,
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more washers would have to be made,
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and there'd be more work
for his pals to do.
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The lump of work would get bigger.
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Schloss called this
"the lump of labor fallacy."
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And today you hear people talk
about the lump of labor fallacy
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to think about the future
of all types of work.
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There's no fixed lump of work
out there to be divided up
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between people and machines.
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10:09
Yes, machines substitute for human beings,
making the original lump of work smaller,
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but they also complement human beings,
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and the lump of work
gets bigger and changes.
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But LOLFF.
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Here's the mistake:
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it's right to think
that technological progress
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makes the lump of work to be done bigger.
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Some tasks become more valuable.
New tasks have to be done.
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10:30
But it's wrong to think that necessarily,
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human beings will be best placed
to perform those tasks.
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10:35
And this is the superiority myth.
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10:37
Yes, the lump of work
might get bigger and change,
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10:41
but as machines become more capable,
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it's likely that they'll take on
the extra lump of work themselves.
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Technological progress,
rather than complement human beings,
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complements machines instead.
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To see this, go back
to the task of driving a car.
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Today, satnav systems
directly complement human beings.
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They make some
human beings better drivers.
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But in the future,
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software is going to displace
human beings from the driving seat,
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and these satnav systems,
rather than complement human beings,
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will simply make these
driverless cars more efficient,
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helping the machines instead.
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Or go to those indirect complementarities
that I mentioned as well.
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The economic pie may get larger,
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but as machines become more capable,
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it's possible that any new demand
will fall on goods that machines,
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rather than human beings,
are best placed to produce.
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The economic pie may change,
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but as machines become more capable,
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it's possible that they'll be best placed
to do the new tasks that have to be done.
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In short, demand for tasks
isn't demand for human labor.
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Human beings only stand to benefit
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if they retain the upper hand
in all these complemented tasks,
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but as machines become more capable,
that becomes less likely.
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11:50
So what do these three myths tell us then?
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Well, resolving the Terminator myth
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shows us that the future of work depends
upon this balance between two forces:
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11:58
one, machine substitution
that harms workers
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12:01
but also those complementarities
that do the opposite.
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12:04
And until now, this balance
has fallen in favor of human beings.
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12:09
But resolving the intelligence myth
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shows us that that first force,
machine substitution,
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is gathering strength.
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Machines, of course, can't do everything,
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but they can do far more,
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encroaching ever deeper into the realm
of tasks performed by human beings.
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What's more, there's no reason to think
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that what human beings
are currently capable of
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represents any sort of finishing line,
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12:28
that machines are going
to draw to a polite stop
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once they're as capable as us.
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Now, none of this matters
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so long as those helpful
winds of complementarity
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blow firmly enough,
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12:38
but resolving the superiority myth
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12:40
shows us that that process
of task encroachment
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12:44
not only strengthens
the force of machine substitution,
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12:47
but it wears down
those helpful complementarities too.
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12:51
Bring these three myths together
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1936
12:53
and I think we can capture a glimpse
of that troubling future.
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12:56
Machines continue to become more capable,
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12:58
encroaching ever deeper
on tasks performed by human beings,
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13:01
strengthening the force
of machine substitution,
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13:04
weakening the force
of machine complementarity.
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13:08
And at some point, that balance
falls in favor of machines
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13:12
rather than human beings.
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13:14
This is the path we're currently on.
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I say "path" deliberately,
because I don't think we're there yet,
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13:19
but it is hard to avoid the conclusion
that this is our direction of travel.
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13:24
That's the troubling part.
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Let me say now why I think actually
this is a good problem to have.
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13:30
For most of human history,
one economic problem has dominated:
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13:34
how to make the economic pie
large enough for everyone to live on.
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13:38
Go back to the turn
of the first century AD,
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13:40
and if you took the global economic pie
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2096
13:42
and divided it up into equal slices
for everyone in the world,
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13:45
everyone would get a few hundred dollars.
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13:47
Almost everyone lived
on or around the poverty line.
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13:51
And if you roll forward a thousand years,
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13:53
roughly the same is true.
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13:55
But in the last few hundred years,
economic growth has taken off.
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13:59
Those economic pies have exploded in size.
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2376
14:01
Global GDP per head,
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2056
14:03
the value of those individual
slices of the pie today,
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14:07
they're about 10,150 dollars.
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2816
14:10
If economic growth continues
at two percent,
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14:12
our children will be twice as rich as us.
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2056
14:14
If it continues
at a more measly one percent,
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2296
14:17
our grandchildren
will be twice as rich as us.
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2656
14:19
By and large, we've solved
that traditional economic problem.
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14:24
Now, technological unemployment,
if it does happen,
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3016
14:27
in a strange way will be
a symptom of that success,
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3216
14:30
will have solved one problem --
how to make the pie bigger --
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3856
14:34
but replaced it with another --
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1816
14:36
how to make sure
that everyone gets a slice.
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2760
14:39
As other economists have noted,
solving this problem won't be easy.
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3496
14:43
Today, for most people,
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1656
14:45
their job is their seat
at the economic dinner table,
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2496
14:47
and in a world with less work
or even without work,
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14:50
it won't be clear
how they get their slice.
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14:52
There's a great deal
of discussion, for instance,
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2336
14:54
about various forms
of universal basic income
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2696
14:57
as one possible approach,
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1216
14:58
and there's trials underway
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1616
15:00
in the United States
and in Finland and in Kenya.
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2400
15:03
And this is the collective challenge
that's right in front of us,
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3176
15:06
to figure out how this material prosperity
generated by our economic system
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5056
15:11
can be enjoyed by everyone
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1976
15:13
in a world in which
our traditional mechanism
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2416
15:15
for slicing up the pie,
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1856
15:17
the work that people do,
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1936
15:19
withers away and perhaps disappears.
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2160
15:22
Solving this problem is going to require
us to think in very different ways.
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4360
15:27
There's going to be a lot of disagreement
about what ought to be done,
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4176
15:31
but it's important to remember
that this is a far better problem to have
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3416
15:35
than the one that haunted
our ancestors for centuries:
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2816
15:37
how to make that pie
big enough in the first place.
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15:41
Thank you very much.
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15:42
(Applause)
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3840

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ABOUT THE SPEAKER
Daniel Susskind - Economist
Daniel Susskind explores the impact of technology, particularly artificial intelligence, on work and society.

Why you should listen

Daniel Susskind is the co-author, with Richard Susskind, of the best-selling book, The Future of the Professions, and a Fellow in Economics at Balliol College, Oxford University. He is currently finishing his latest book, on the future of work. Previously, he worked in the British Government -- as a policy adviser in the Prime Minister's Strategy Unit, as a policy analyst in the Policy Unit in 10 Downing Street, and as a senior policy adviser in the Cabinet Office. Susskind received a doctorate in economics from Oxford University and was a Kennedy Scholar at Harvard University.

More profile about the speaker
Daniel Susskind | Speaker | TED.com