Group members:
Khyati Mistry 1611102 (coordinator)
Kajal Thacker 1611091
Krishna Patel 1611105
Mita Kachhela 1611120
Mitali Parmar 1611121
Narendra Varde1611133
Humans are using their intelligence in getting the world into modern equipment so that the work is performed in much easier way. The concept leads to understand the terms that are based on technological paced development. The growth of technology makes the further standards of creating innovation that reflects intellectual asset of the organisation. The world has named this technology as “Artificial Intelligence” and this means it is the study of how to make computers do things that a human is better at. The Artificial Intelligence is a term that can be defined in simple words as searching intelligent problem-solving behaviour and creating intelligent computer systems. 1
Considering the above facts, there are several questions that arises regarding AI and organisations. The first and foremost question that is asked is the effect of AI on different sectors. Sectors reforms the old model to introduce the new trends which help them serve better results. Sectors are assumed as the Economy because after manufacturing and service economy that we have witnessed, the third economy that is taking place is the knowledge economy as it an intellectual facility that are going to be updated.

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Manufacturing economy was highly depended upon labours, and the service economy was depended upon employees for providing better service to their clients and maintain better relations with the clients, because of this dependency automation and technology was introduced. But the Knowledge Economy catches with finest skilled labours who have talent and experience being able to deal with new challenges. The problem here is that if the employee leaves the organisation he/she takes away his/her experiences, intellect, knowledge and competence which could have benefitted the organisation in future. In order to resolve this problem Artificial intelligence became necessary for the organisations.
The process of AI is accomplished by studying, how the human brain works, acts, decides and indulges in solving the problems. AI can have impact on the job market but the question is that the effect that it whether it is something we should welcome or fear (Jain. A, 2017). In an organisation, number of things will change once AI is adopted and the adaption will have positive effect or negative effect. Factories, service renderer, transportation, finance, economy, banking and even consumers are highly involved in this and it might take years to adopt the human activities into automation.
There are different places where AI is applied such as Gaming, Natural Language Processing, Expert Systems, Vision Systems, Speech Recognition, Handwriting Recognition, and Intelligent Robots. There is different discipline that contribute to AI and they are Computer Science, Psychology, Biology, Neuron Science, Maths, Sociology, and Philosophy1. But for our study and for better understanding we limit these variables to Intelligent robots, Natural language processing, Speech recognition and Expert systems.

Research Problem:
Artificial Intelligence is playing a predominant role at workplaces in developed countries due to which competencies required for the jobs are also changing. Adopting AI is a challenge in Organizational workplaces as it is a major change for them. India is yet to adopt this technology of Artificial Intelligence; the problem is to know the perception of its stakeholders about the challenges, opportunities and benefits that would come along with the introduction of AI in the organization. As the job market gets affected, the skills market for the jobs would also get affected, and how the organizations and people are going to prepare themselves for AI is the matter that we focus on.

Need of the Study:
There is extensive body of knowledge gathered during the past decades on Artificial Intelligence and the impact it might create on current jobs, as far as developed countries are concerned. But, when we look at the developing countries like India, Malaysia, Bulgaria, Georgia, Indonesia, Vietnam, etc the organizations and the employee’s view point and their perspective on Artificial Intelligence have not been studied much. Thus, significance of the topic lie in the fact that insights into this area would particularly help in future to know organization and employee’s perceptions, view points, fears, readiness, acceptance level and their plans to tackle with Artificial Intelligence.
With it AI will bring a major technological change in the organizations and for that the organizations should be prepared. To smoothly manage this change, organization should have to bring right interventions at the right time. If the perception of the employees is known to the organization it will help them to bring in right kind of mentoring, training, counselling and techniques used to implement this change. And also, the change agents can be found from employee’s survey.

Along with the change in the technology the skills required for the jobs by the employees will also change and what are the basic skills required from the employees in the organizations due to this technological advancement is not known. The findings from this study will also be able to give answer to this question. This will also help the employees or future job seekers to prepare themselves for the jobs market were AI is also playing an active role.

Also, when we talk about AI affecting jobs the degree of mechanization of personal services depends not only on the supply-side factors such as technological progress and cost reduction but also on the acceptability of the service by consumers. If consumers’ preference for services provided by human work is strong, personal service jobs are hard to be replaced by low-cost service robots equipped with AI-related technologies. Therefore, consumer preference is also an important aspect to look at.
Research Questions:
Which Industries as per employees’ perceptions will be vulnerable to Artificial Intelligence-manufacturing or Service?
What does consumers prefer-Artificial intelligence or humans in service sectors like restaurants and banking?
What is the management’s perception about AI’s ability for decision making?
What type of skills would be required for the jobs created by AI?
Research Objectives:
The main objective of this research is to find the impact of Artificial intelligence on jobs in Service and manufacturing industry.
To identify the challenges faced by the stakeholders and to know their perception in adapting artificial intelligence.
To identify what are the skills that would be required by the future job seekers in the view point of the organizations/recruiters due to developing Artificial Intelligence.

To distinguish the jobs, that will become redundant with the implementation of Artificial Intelligence
Literature Review:
This part talks about the review of literature. The need of literature review was fulfilled by referring several articles, journals and past research papers from the platforms like EBSCO, JSTOR, EMRALD, Psychinfo, ASSIA, Pro Quest and Google Scholar.

Structure followed for the literature review:

An understanding of AI depicts the machines and its uses instead of humans. According to the father of Artificial Intelligence, John McCarthy, it is “The science and engineering of making intelligent machines, especially intelligent computer programs”.

Artificial Intelligence is a way of making a computer, a computer-controlled robot, or a software think intelligently, in the similar manner the intelligent humans think.

AI is accomplished by studying how human brain thinks and how humans learn, decide, and work while trying to solve a problem, and then using the outcomes of this study as a basis of developing intelligent software and systems.

Applications of AI have been dominant in various fields such as ?Gaming, Natural language processing, Expert Systems, vision Systems, speech recognition, Handwriting recognition, Intelligent Robots.
Future uses of artificial intelligence may easily be conjectured but we feel that given the information presented in this paper the reader himself is in a position to judge and guess (Feigenbaum ; Feldman eds,1963).

AI has simply had to compete for investment dollars with other technologies, such as high-speed computing, mathematical analysis and materials science. AI’s slow adoption represents not its own failure but a vote of confidence in something else says van de Kraats. Kempf agrees that managers are busy but not stupid. There is an inherent conservatism in manufacturing, he says; people “have been snake-oiled before.” AI must prove its worth before it finds wide acceptance.

Developers of artificially intelligent systems should spend far more effort on choosing and analysing their tasks, Kempf says. “AI people want to do the fun part and then walk away,” he comments. “That’s not going to work.”
Andrew McAfee write that “in more and more domains, the most cost-effective source of ‘labour’ is becoming intelligent and flexible machines as opposed to low-wage humans in other countries.”
Wasilly Leontief warned that with the introduction of increasingly sophisticated computers, “The role of humans as the most important factor of production is bound to diminish in the same way that the role of horses in agricultural production was first diminished and then eliminated by the introduction of tractors.”
A challenge for the next 10 years is to make a program that can read a chapter in a freshman-level college text and then answer the questions at the back of the chapter,” says Raj Reddy of Carnegie Mellon University in Pittsburgh, pres dent of the American Association for Artificial Intelligence.
“We’re still searching for the right ‘atoms’ to describe intelligence,’ admits William Clancey of the Institute for Research on Learning in Palo Alto, Calif.
AI continues to develop at a glacial pace, with several significant revolutions required to approach the order of complexity needed to carry on even a “small talk” conversation in natural language. In particular, connecting knowledge at the level required to process both high-level knowledge and low-level sensory input remains a challenge (Amir & Maynard-Zhang, 2004; de Salvo Braz, Amir, & Roth, 2007).
“In the long run, new types of industries have always absorbed the workers displaced by machinery, but of late, we have been developing new machinery at a faster rate than we have been developing new industries…At the same time we must ask ourselves, is automatic machinery, driven by limitless power, going to leave on our hands a state of chronic and increasing unemployment? Is the machine that turns out wealth also to create poverty? Is it giving us a permanent jobless class? Is prosperity going to double back on itself and bring us social distress?” This was from the Secretary of Labour in 1927, “Puddler” Jim J. Davis.

A Bureau of Labour Statistics study of office automation in twenty large business firms showed that, one year after automation, there had been increases in salary grade for more than four-fifths of the computer area employees, as compared with one third of the employees of other affected departments. Virtually none were lowered in grade or lost their jobs. That office automation may well lead to different long-run results, however, is suggested in preliminary reports by Ida Hoos on another study of about twenty organizations.
Intended Hypothesis:
Manufacturing and service Industries’ equally vulnerable to Artificial Intelligence.

Artificial Intelligence will not create any kind of new jobs.
Unskilled Labour jobs will be redundant.
Research Methodology:
The tools employed for generating the responses in the study will be questionnaires and interviews. First the pilot study with 10 – 15 respondents who are of similar profile will be conducted after taking the feedback of the respondents into consideration necessary adjustments will be incorporated. For the study, both manufacturing and service industry will be taken into consideration. In manufacturing the focus will be on the Information Technology (IT) industry and Textile Industry and in service sector the focus will be on restaurants and banking industry. The research will be carried out in both qualitative and quantitative way. For organizations the qualitative study through depth interviews will be done and for perception of employees and consumers quantitative study through questionnaires will be conducted. The primary data for this research study will be collected from the respondents in the Ahmedabad city. This city is chosen as per our convenience. The method of sampling which will be used for collecting samples will be convenience sampling. The questionnaire method will be adopted to collect the primary data from the employees and the consumers andinterviews will be conducted for the management. Respondents will be requested to fill upthe questionnaire based on their judgments and beliefs. The pretesting of questionnaire will be done through a pilot survey before finalizing the questions.

Time Frame:
The timeline for conducting the capstone research is as follows:
Topics to be completed Deadlines:
Literature Review 17th October, 2018
Research Design and Final Hypothesis 14th November, 2018
Data collecting (conducting Research) 31st January, 2019
Primary Analysis 3rd February, 2019
Final Analysis 13th March, 2019
Research Report 20th March, 2019
Final Presentation 1st April, 2019
Finlay, J., & Dix, A. (1996). An introduction to artificial intelligence. Crc Pres.

Liebowitz, J. (1989). Artificial intelligence: New jobs from old. AI & SOCIETY, 3(1), 61-70.

Churcher, P. R. (1991). The impact of artificial intelligence on leisure. AI & society, 5(2), 147-155.

Yoon, Y., & Guimaraes, T. (1995). Assessing expert systems impact on users’ jobs. Journal of management information systems, 12(1), 225-249.

Geraci, R. M. (2008). Apocalyptic AI: Religion and the promise of artificial intelligence. Journal of the American Academy of Religion, 76(1), 138-166.

Baber, W. F. (1989). The arts of the natural: Herbert Simon and artificial intelligence. Public Administration Quarterly, 329-347.

 Haugeland, J. (1989). Artificial intelligence: The very idea. MIT press.

Simon, H. A. (1987). Two heads are better than one: the collaboration between AI and OR. Interfaces, 17(4), 8-15.

Santhanam, R., & Schniederjans, M. J. (1991). Artificial intelligence: implications for teaching decision science. Interfaces, 21(5), 63-69.

Rich, E. (1985). Artificial intelligence and the humanities. Computers and the Humanities, 19(2), 117-122.

 David, H. (2015). Why are there still so many jobs? The history and future of workplace automation. Journal of Economic Perspectives, 29(3), 3-30.

 Roese, N. J., & Amir, E. (2009). Human—Android Interaction in the Near and Distant Future. Perspectives on Psychological Science, 4(4), 429-434.

Schmitt, J., & Jones, J. (2012). Where Have All the Good Jobs Gone?. Center for Economic and Policy Research.


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