Do Robots Improve or Reduce Productivity? A Comparative Case Study

In the past several decades, artificial intelligence and robotics has played a vital role in the improvements in technology and led to a surge in public interest. As the figures from the International Federation of Robotics (IFR) show, sales of robots are increasing year-on-year, with a 15% increase in 2015 over the previous year. The IFR estimates that over 2.5 million industrial robots will be at work in 2019, representing an average annual growth rate of 12% between 2016 and 2019 (International Federation of Robotics 2016). Many companies are “experiencing a wave of robot-related optimism and investment” because of the deliverables of productivity and growth. On the other hand, the robotics has a strong potential to adversely affect the individual worker, especially the fear of the impact of automation. IFR (2016) stated that “these fears are tied into broader geo-political and social shifts driven by issues such as trade policy and immigration that, overall, contribute to a sense of insecurity about the employment prospects of current and future generations.” I will draw upon the impact of automation — including robotics — on human jobs that are likely to be replaced or at risk of being automated. However, automation should not be viewed completely negative, in fact, it has a substantial number of positive contributions to productivity, competitiveness…