The tech landscape in the Association of Southeast Asian Nations (ASEAN) is still booming and opening up new avenues for workers to thrive in the job market. According to the eConomy SEA Report 2023 by Google, Temasek Holdings, and Bain & Company, the digital economy is maintaining its growth towards profitability and sustainability. One of the key factors affecting the region now is automation. The automation market in Southeast Asia is poised for a surge, with projections estimating it to reach USD 17.7 billion by 2030, fueled by a steady growth rate of 6.6% annually from 2023.
Southeast Asian automation is making waves, impacting nations as other tech innovations have. For example, smartphone development is revolutionising our world, providing benefits in communication, logistics, content management, financial inclusion, and more. Advancements to the digital infrastructure are also ensuring that human beings can achieve the convenience and solutions they crave.
Automating involves using machines to reduce or eliminate human input in company processes. It enables businesses to increase productivity and efficiency, speed up work, deliver quality products by removing errors through machine precision, and reduce costs by eliminating resource wastage. Moreover, it increases workplace safety by reducing accidents and injuries and lowering insurance costs.
Businesses can scale and adapt to ever-changing needs by automating their work. For example, streamlining processes like HR using technology (HRtech) improves recruitment, employee onboarding, and management. It impacts industries like manufacturing through machines operating assembly lines, chatbots for customer service, automated warehousing and logistics, and self-service in banking through automated teller machines (ATMs), among others.
Challenges brought by automation
Even though automation makes a difference, it poses many challenges for Southeast Asians. Some of the concerns include:
The fear of job loss
Automating tasks makes many positions redundant, so companies begin laying off workers. Thus, many employees develop an unhealthy fear of job displacement or loss and cannot do their work well. As more people lose their jobs, the pressure falls on governments to deliver alternative employment for the displaced employees.
Data collection, management, and privacy issues
When businesses introduce machines in the workplace, these digital tools collect lots of data, creating a risk of privacy violations or identity theft. Cybercriminals constantly target startups to unearth or ransom data, thereby increasing operational costs.
Ethical/moral concerns
Automating may enhance income inequality because the rich can afford the technology, whereas the poor may struggle to access advanced machines. Plus, replacing low-skilled jobs reduces human touch and interactions in the workplace and may threaten customer connection.
Sustainability issues
Using advanced technologies to automate may harm the environment. For example, the extensive infrastructure needed to store data means more electricity and land use, depleting already scarce resources.
Skill losses and lack of skilled labour
There is a shortage of skilled tech labour in Southeast Asia, and introducing automation brings new problems for employees in understanding how things work. Additionally, there is a risk of workers becoming dependent on technology, thereby losing their skills. This may disrupt the office if critical systems fail because they cannot adapt.
Technical challenges
Switching to automated tools poses a challenge because it may require more work to integrate legacy systems with modern ones. The entire processes rely on technology and may suffer failure, such as software glitches, and disrupting operations.
High costs of use and implementation
Finally, setting up a startup to automate operations requires a heavy capital investment. While there are cost savings long-term, immediate costs include equipment purchases, installation, staff training, legacy system integration, and more.
Adapting automation in a tech-driven society
Automation in Southeast Asia should not be viewed as a problem but as an opportunity to work more efficiently and productively. Despite all the challenges shifting to automated processes creates, the benefits show it is a worthwhile investment.
Job creation
Automating brings new opportunities in novel fields. For example, employees can take on the role of data analysts or automated tool manufacturers. Some jobs combined with courses are cropping up to meet the demand for this knowledge in the job market.
Shift to tech studies
In the modern-day world, technology is essential at home and in the workplace. Future employees must be ready to handle tech, including managing automated systems. Thus, students should focus more on learning about software, engineering, and other technological lessons to have the upper hand when applying for jobs.
Integrate automated technology everywhere
Employers should automate every possible department. For example, they can integrate HRtech to help the company recruit and hire the best employees. Choosing the right technology stack will boost operations, but the automating tools should undergo rigorous testing to find the tech that suits the business.
Recruitment and upskilling
The impact of automated offices means a demand for tech-talented employees. Plus, the companies may need to upskill their current workers.
It will take time for people to accept and adopt automation, but ultimately, it will prove vital for ASEAN businesses.
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