Paradox of Automation - The Personal MBA (2024)

The Personal MBA

Master the Art of Business

by Josh Kaufman, #1 bestselling business author

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The Paradox of Automation says that the more efficient the automated system, the more crucial the human contribution of the operators. Humans are less involved, but their involvement becomes more critical.

If an automated system has an error, it will multiply that error until it's fixed or shut down. This is where human operators come in.

Efficient Automation makes humans more important, not less.

Josh Kaufman Explains The 'Paradox of Automation'

Automation can be great, but it has very important drawbacks worth understanding.

Imagine a fully automated production line that makes computer processors that sell for $200. All the human operators have to do is push a button, and the production system starts cranking out 2,400 finished products per minute.

Life is good, right? Yes, with a very important caveat.

Imagine that a drill used to bore holes in the silicon wafer becomes misaligned, and starts drilling microscopic holes through the middle of the processor core. Every second the system keeps working, 40 chips are ruined.

Assume each processor costs $20 in material costs-that means the factory starts losing $800 every second the error isn't found. Every minute the system keeps running, the company loses $48,000 in raw materials.

And that's just the direct cost-if you take into account that each processor would sell for $200, the company is losing $528,000 a minute: $48,000 in direct costs and $480,000 in opportunity cost.

Sound far fetched? Consider this: in late 2009, Toyota identified a major issue with the accelerator pedal in several popular vehicle models, which were top sellers for many years.

The error was Multiplied across every vehicle Toyota made, and the recall cost over $5 billion dollars.

Before the recall, Toyota was considered the best automotive manufacturer in the world. They still are in many respects, but their Reputation has suffered a major blow. Even the best can fall if costly mistakes are allowed to multiply.

Here's the Paradox of Automation: the more efficient the automated system, the more crucial the contribution of the human operator.

When an error happens, operators need to get involved quickly and flawlessly-otherwise, the automated system will amplify the effects of the error until it is fixed.

Dr. Lisanne Bainbridge, a psychologist at University College London, was one of the first to rigorously study the ramifications of efficient and reliable systems. She was the first to identify and express the "Paradox" of Automated systems: efficient automated systems reduce the need for human effort, but make human involvement even more critical.

Efficient Automation makes humans more important, not less.

Questions About The 'Paradox of Automation'

  • For any automated systems you use, do you have qualified human operators ready to jump in and fix issues quickly?
  • How can you identify systematic errors before they become too big to handle?

"One machine can do the work of fifty ordinary men. No machine can do the work of one extraordinary man."

Elbert Hubbard, author of A Message to Garcia

From Chapter 11:

Understanding Systems

https://personalmba.com/paradox-of-automation/

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The Personal MBA

Master the Art of Business

by Josh Kaufman, #1 bestselling business author

A world-class business education in a single volume. Learn the universal principles behind every successful business, then use these ideas to make more money, get more done, and have more fun in your life and work.

Buy the book:

Print

Kindle

Audio

Get the audio free

Paradox of Automation - The Personal MBA (3)

About Josh Kaufman

Josh Kaufman is an acclaimed business, learning, and skill acquisition expert. He is the author of two international bestsellers: The Personal MBA and The First 20 Hours. Josh's research and writing have helped millions of people worldwide learn the fundamentals of modern business.

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The Personal MBA: Master The Art of Business is published by Portfolio, an imprint of Penguin/Random House. All excerpts from the book are published under agreement with the publisher. This material may not be reproduced, displayed, modified, or distributed in any way without the express prior written permission of Worldly Wisdom Ventures LLC.

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Paradox of Automation - The Personal MBA (2024)

FAQs

Paradox of Automation - The Personal MBA? ›

The Paradox of Automation says that the more efficient the automated system, the more crucial the human contribution of the operators. Humans are less involved, but their involvement becomes more critical. If an automated system has an error, it will multiply that error until it's fixed or shut down.

What is the paradox of automation? ›

What is the Automation Paradox? The Automation Paradox is the phenomenon where the more efficient an automated system becomes, the more crucial human involvement becomes.

What is the author's claim of the automation paradox? ›

The central claim of the author in "The Automation Paradox" is that computer automation will likely be responsible for the loss of most jobs. The author argues that as automation technologies continue to advance, they will replace many tasks currently performed by humans, leading to significant job displacement.

Which two reasons best explain why the author included paragraph 5 in Heads Up Humans? ›

Final answer: The author likely included paragraph 5 in "Heads Up, Humans" to describe a possible effect of technology and to provide supporting evidence for their claim, which would be aligned with effective argumentative writing by offering clear reasoning and concrete evidence to reinforce their point.

Who is the author of the automation paradox? ›

''The Automation Paradox'' by James Bessen.

What is an example of the automation paradox? ›

Every second the system keeps working, 40 chips are ruined. Assume each processor costs $20 in material costs-that means the factory starts losing $800 every second the error isn't found. Every minute the system keeps running, the company loses $48,000 in raw materials.

What does Elon Musk think about automation? ›

Questioned on the matter, the company's CEO, Elon Musk, claimed that “excessive automation was a mistake” and that “humans are underrated”. He's not wrong – the recent drive for full automation has overlooked the importance of adaptability.

What describes the paradox of automation brainly? ›

Question: Which describes the Paradox of Automation? The more efficient an automated system becomes, the more human invalvement is requived. The more human involvement in an automated system decreases.

Which describes personal automation? ›

automating simple, repetitive tasks through user-friendly software applications describes Personal Automation.

Which sentence from the text "The automation Paradox" best supports the writer's claim? ›

In "The Automation Paradox," which sentence from the text best supports the writer's claim? Computers are now taking over tasks performed by professional workers, raising fears of massive unemployment.

What is the difference between automation paradox and heads up humans? ›

In "The Automation Paradox," Bessen primarily uses statistics to show how computers have increased blue-collar jobs. In "Heads Up, Humans," Alarcón primarily uses anecdotes to show how computers have lowered low-skill employment in many professions.

What is the effect of the author's use of graphs in the automation paradox? ›

Explanation: In 'The Automation Paradox', the author's use of graphs serves to further demonstrate and visually embody the concept of the book. They provide tangible representations of abstract concepts, making the information more digestible for the reader.

How does automation affect unemployment rates? ›

According to the latest paper, employment was reduced by 7.5 percent following exposure to industrial robots. Labour force participation decreased by one percent. The researchers use the manufacturing firm Foxconn as a case study. Foxconn replaced more than 400,000 jobs with robots between 2012 and 2016.

What is the author's argument in the automation paradox? ›

When computers start doing the work of people, the need for people often increases. A fact that supports the author's claim in "The Automation Paradox": Even though computers are more accurate, jobs for paralegals and legal-support workers actually grew faster than the labor force as a whole.

What is the famous AI paradox? ›

This is Moravec's paradox, coined by Hans Peter Moravec of Carnegie-Mellon University, who observed that "it is comparatively easy to make computers exhibit adult level performance on intelligence tests or playing checkers, and difficult or impossible to give them the skills of a one-year-old when it comes to ...

What is automation with a human intelligence called? ›

Intelligent automation (IA), sometimes called cognitive automation, is the use of automation technologies—artificial intelligence (AI), business process management (BPM) and robotic process automation (RPA)—to streamline and scale decision-making across organizations.

What is the paradox of technology? ›

In an era where technological advancements promised to streamline tasks and create more leisure time, the paradoxical reality we face today is that our lives seem busier than ever. The digital age was supposed to be a gateway to increased efficiency, freeing up time for leisure and personal pursuits.

What is the main problem with automation? ›

A main disadvantage often associated with automation, worker displacement, has been discussed above. Despite the social benefits that might result from retraining displaced workers for other jobs, in almost all cases the worker whose job has been taken over by a machine undergoes a period of emotional stress.

What is the paradox about robots? ›

The Moravec paradox states the tasks that are easy for humans, and difficult for machines, such as facial recognition. On the other hand, tasks that we find challenging, such as complex calculations or playing chess, are relatively easy for AI systems.

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