The relationship between technology and jobs is center stage in the policy and academic debate. The discussion reveals a fascinating, troubling contradiction. On the one hand, there is widespread fear that innovation will lead to a loss of jobs and rising income inequality — the “race against the machines” narrative. On the other, the slowdown in productivity growth across advanced economies has led some economists to argue that new innovations have no impact on growth.
Augmented Reality Is Already Improving Worker Performance
“Upskilling” technologies — a partnership between humans and smart machines — can augment workers’ abilities, resulting in dramatically improved performance, greater safety, and higher satisfaction. A good example is the emerging industrial use of augmented-reality (AR) smart glasses that overlay computer-generated video, graphics, or text such as step-by-step repair instructions onto physical objects. Wearable AR devices are now being used in manufacturing and industrial settings and can boost workers’ productivity by 30% or more on an array of tasks the first time they’re used, even without prior training. These technologies increase productivity by making workers more skilled and efficient — and thus have the potential to yield both more economic growth and better jobs. AR technologies could be instrumental in closing the skill gap that is responsible for the shortage of skilled manufacturing workers, resulting in increased industrial productivity and higher wages.