Satya Nadella on the future of employment: “The fallacy of the fixed amount of work and the lack of imagination prevent us from moving forward”

In addition to the cost and effects derived from its development, the biggest concern about the future of AI is knowing the impact that this technology will have on the labor market around the world. In fact, we are already beginning to see the first signs: it may not take away our jobs in the short term, but that’s it changing the way we work. Microsoft CEO Satya Nadella has been interviewed by Fareed Zakari in the cnn and has told his vision of how AI will affect the future of employment. To describe the scenario, Nadella uses a phrase that can seem almost cryptic until its meaning is known: “The fallacy of the fixed amount of work and the lack of imagination prevent us from moving forward.” The fallacy that stops us. Nadella calls it the lump of labor fallacy. It’s an idea widely studied and argues that there are a certain number of tasks to be performed. Employment is defined by these tasks: there are those who build houses, others put pipes, others cables, other furniture, etc. If a machine (or an AI, in this case) automates one of those tasks, fixed quantity of work theory defines that a human has one less task left to do. That is, that job would have been destroyed. For Nadella, that calculation fails because it does not take imagination into account. The typist apocalypse. The CEO of Microsoft gave a fairly descriptive example of how this theory falters in the face of technological advances: “Imagine that in the early 80s, someone said to you: “You know what? Three billion people are going to wake up tomorrow and start typing. “We would have said: and why does the world need three billion typists?” joked the company’s top executive who, according to the CEO of Perplexitybuilt the concept of office work to sell more software and was mainly responsible for the computer implementation in companies. “In the last 40 years, the entire knowledge work economy was created, and all of us have worked in it in different roles,” Nadella concluded. That is, the CEO believes that the future of employment cannot be assessed from the perspective of current labor or work organization needs, because in the future, the needs of companies will be different and the roles of employees will also be different. The fact behind the anecdote is real. In 1980 there were almost a million typists in the US. Today it is a profession that is almost extinct. And yet, office employment remains more active than ever. He just changed the way he worked. Nadella bets that something similar will happen with AI. The process of change. We are already seeing this change in the way of working in some sectors such as software engineers or in the lawyers. “What it means to be a software engineer is changing,” Nadella said. Creating a document and creating a program have become, “to some extent, the same task”: enough ask the AI ​​agent appropriate. This change is already noticeable outside of computing. In the legal sector, some firms treat AI as a quick but unreliable intern. And lawyers, increasingly, as their AI supervisors. Nadella states that: “Our ability to discern what a human does with the output of AI will be the new quality we value.” The value is no longer in typing quickly, but in know what deserves to stay and what to throw away. However, the manager has no doubts about the difficulty that all of humanity will face to complete this change in the labor paradigm: “This process is going to have some changes and a significant displacement (of employment). Not everything is going to be rosy. But when we come out on the other side, I think there will be new jobs that we will value as human beings.” Macrodelegation and microdirection. To explain day-to-day work, Nadella coins his own term: macrodelegation and micromanagement. “Each of us will become better at managing through intentions (madrodelegation) and will have the ability to direct it exactly where we want it (microdirection),” he declared in his interview with the cnn. In other words, the role of employees will be that of conductor of the orchestra of AI agents. An employee would tell them what objectives to achieve, and would supervise that the results delivered by the AI ​​meet that objective and are precise in their execution. That is, AI would not play a substitute role, but rather a collaborative one. “Does that mean that, in some way, the specialized systems engineer that we need to be able to build distributed systems in Azure disappears? No way,” stated the Microsoft CEO. Nadella’s revolution. The manager closed his interview by pointing out one of the fears that Silicon Valley is stirring: that society does not accept the change implied by the arrival of AI and this process of job displacement. There Nadella draws a historical reference. “Revolutions are great, as long as there is a reaction.” The CEO prefers an orderly transition, like the one experienced in England in 1688in which the institutions did not lose control, to a violent rupture as the French Revolutionwhich made the heads of the country’s authorities roll. In Xataka | In 1993 Satya Nadella was a lanky middle man who introduced Excel to developers. Today he is the CEO of Microsoft Image | Microsoft

The irrational fear of changing jobs has a name and influences your decision making: sunk cost fallacy

Often people They cling to jobs that they no longer satisfy them – or that, directly, They do not support-, but they resist leaving it moved by the fear of losing everything they have invested to get to where they are: time, effort or training. Although it may seem strange, this behavior responds to a psychological bias called sunk cost fallacy. This bias can delay decision making to leave a job and perpetuate itself in an unfavorable work situation that can even affect mental health .. What is the sunk cost fallacy? Psychologists Amos Tversky and Daniel Kahneman of the Hebrew University of Jerusalem coined for the first time In 1972 the idea of ​​cognitive bias psychologists such as Daniel KahnemanNobel Prize in 2002, were based on the work of Tversky and Kahneman To demonstrate The profound influence of this bias on business and personal decision making, being relatively easy to be trapped in that immobility situation. Richard Thaler presented for the first time The practical concept of the fallacy of the sunk cost, concluding that people have a greater tendency to use a certain good or service when they have previously invested money in them. According Research From the University of Ohio (USA), the fallacy of the sunk cost refers to the trend that people have to continue an activity or remain in a certain situation because resources have already been invested in it, although these resources are unrecoverable and the logical decision would be to abandon it. In labor decision making, falling into the fallacy of the sunk cost – or of unrecoverable cost – implies postponing indefinitely the decision to change jobs Just because we do not want to “lose” what has cost us to reach the current position. The bias in important decisions This thought error causes people to stagnate in jobs that do not motivate them and are even restricting their professional potential, even when there are evidence of other more beneficial and rational options. The bias is based on a determining psychological factor such as loss aversion. For example, the personal feeling of responsibility for the resources already invested, or the fear to seem like a “wasteful” to others, can make someone stay years in a job that no longer provides satisfaction or professional growth. In Psychological researchit has been proven that the change of work is postponed, although the alternative is clearly better. This paralysis is produced by this aversion to the psychological loss that supposes that all the effort made in the past has fallen into a broken bag. Trapped in their own trap A study carried out by the researchers at the University of Kansas with more than 1,000 participants showed that, who fall into this fallacy, have greater symptoms of anxiety and postpone the search for professional help. Recent research From the Department of Psychology and Economics of the University of California in San Diego, they reflect that “the fact that you have dedicated unrecoverable resources to a project does not mean that you have to sink with the ship,” said their authors. The scientific evidence It reveals that, to avoid making irrational decisions, it is essential to identify this cognitive bias and learn to make decisions based on objective data and future possibilities, not in what has cost you to reach the point where you are. Recognizing the fallacy of the sunk cost is the first step to overcome it In labor decisions. If this awareness does not occur, there is a risk of continuing to invest resources, even more intensely, falling into a vicious circle that will be increasingly complicated to leave. Such and as they highlight From Asana, it is important not to get carried away by immobility and make decisions based on objective data and take an external perspective, not get carried away by fears and investments of the past. In Xataka | We thought to choose among more options would make us freer. The “choice paradox” says no Image | Unspash (Marco Kaufmann)

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