Automation will help businesses slash spending, Gartner predicts

Tuesday 15 October 2013


Smart machines will have "widespread and deep business impact" within the next few years, a leading analyst has claimed.

Kenneth Brant, research director at Gartner, believes rapidly advancing technology will see job destruction will happen at a faster pace through to 2020.

"Most business and thought leaders underestimate the potential of smart machines to take over millions of middle-class jobs in the coming decades," he claimed.

Mr Brant said machine-driven job elimination is set to "overwhelm the market's ability to create valuable new ones", as businesses gain efficiencies through the use of IT.

According to Gartner, machines are evolving from automating basic tasks to becoming advanced self-learning systems as capable as the human brain in many highly specialised professions.

"It's worth remembering that IT cost is typically about four per cent of annual revenue, whereas the labour costs that can be rationalised by smart machines are as high as 40 per cent in some knowledge and service industries," said Mr Brant.

He predicted that some "high-profile first movers" will trigger an 'arms race' for acquiring and/or developing smart machines.

Find out how Microsoft IT solutions can help your organisation operate more efficiently and stay competitive in an evolving business landscape.

Posted by Steve Williams