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120 million workers need reskilling as result of automation: Study
"Skillset gaps have worried many companies because they would have an impact on the businesses' future and the world economy," said IBM Indonesia's president director Tan Wijaya.
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One of the biggest concerns with Industry 4.0 is the disruption it has on the job market. McKinsey predicted that 800 million jobs would be gone by 2030 because of automation. (Shutterstock/File)
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s many as 120 million workers from the world's 12 largest economies, including Indonesia, may need to participate in reskilling programs in the next three years as a result of automation enabled by artificial intelligence (AI), according to a recent study.
The study released by technology giant IBM's Institute for Business Value found that it would take 10 times longer compared to in the last four years to close a skills gap through employee training because of the new skills requirements.
The study, which involved 5,670 businesspeople in 48 countries, said that in 2018, the top two skills sought were behavioral, namely a willingness to be flexible, agile and adaptable to change and time management skills.
Meanwhile, in 2016, businesspeople ranked technical core capabilities for science, technology, engineering and mathematics (STEM), as well as basic computer and software knowledge, as the top two skills, signifying the rapid change in skills requirement.
"Skillset gaps have worried many companies because they would have an impact on the businesses' future and the world economy," said IBM Indonesia's president director Tan Wijaya.
As more Indonesian companies automated their business processes to reduce costs and boost productivity, IBM sees the country as a potential market for its services and products.
In 2015, 28 percent of Indonesian manufacturing companies reported that they were automating manual processes, less than Vietnam, Cambodia and Malaysia, which had about 35 percent of their companies investing in automation within the same year, according to a World Bank study.
