The Retailer Winter edition_2020

TECH VS HUMAN Just because a job can be automated does not mean that the technology will be adopted, either quickly or at all. Even if a technological solution is feasible, the cost may be higher compared with human labour and therefore limit implementation by business. To date one of the big plusses for humans over technology has been superior cognitive and social abilities. Future automation, however, will combine improved robotic dexterity and increased cognitive ability (through AI), increasing the likelihood of more cognitive tasks becoming automated. Governor of the Bank of England, Mark Carney, points out that robots can replace hands and heads, but not ‘heart’. We have already seen examples where companies have removed automation to ensure their services provide ‘heart’. In 2015 Morrisons removed their self-checkouts because customers indicated they preferred the social interaction of a check-out operator. Online only bank First Direct, makes a virtue of not using automated menus and having humans answer customer calls, one of the things their customers tell them they love most. THE FUTURE Retail is primed for further automation and digitisation. The extent to which this is implemented will be setting dependant. We predict that automation will be significantly greater in retail warehousing than in customer facing stores, primarily this will be influenced by society’s level of acceptability of robotic interaction and their preference for human interaction. Jobs will be lost, but there will be gains in the areas where new technology boosts demand, jobs will change and broadly they will become more highly skilled and better paid. Humans and technological advancement can be complementary rather than divisive. New technology can boost productivity and new roles can make better use of human interactions.

CRIONA COLLINS // 028 9026 9222 // ccollins@lsh.ie // lsh.ie

the retailer | winter 2020 | 67