The business sector is set to feel the full effects of new technologies such as AI and blockchain in the coming years. As the disruptive powers of these twin technologies hit the mainstream, their combined capabilities will drive a fourth industrial revolution that will transform the business landscape for good. In this article, Umbrella Exchange takes a look at how these emerging technologies are changing the contracting sector.
What are these disruptive technologies?
AI is the theory and practice of building machines that are capable of performing ‘intelligent’ tasks, while blockchain is essentially a digital filing system that stores data in an encrypted database. The integration of AI into blockchain and vice versa has potentially revolutionising possibilities. For example, The Internet of Things (IoT) is the term used to describe the interconnectivity of all things (including people and devices) via the Internet. While AI enhances the ability of these ‘smart’ devices to independently exchange data and communicate with each other, blockchain technology increases the security of all these billions of connections. This has allowed major advancements in areas such as cloud computing.
What will be the impact of disruptive technology on the business sector?
According to a report by KPMG, “By 2030, intelligent agents and robots could eliminate as much as 30% of the world’s human labor, requiring as many as 375 million people to switch job categories entirely.” When you develop AI that can understand language, recognise patterns and problem solve, often more efficiently than humans, the disruption isn’t contained. Similarly, blockchain technology is based upon direct ‘peer to peer’ transactions between computers in a particular network, without the need for third party involvement, such as a bank. The practice of offering secure and trusted documentation of transactions is one that reduces the need for manual involvement in virtually every service industry.
How will new technology affect the contracting sector?
Companies are using market disruption and the combined capabilities of these new technologies to innovate new products, services and practices. These companies urgently require access to specific talent to sustain their growth. Often, these requirements can’t be met through conventional hiring, making contractors a crucial and valuable source of skills that are not internally available. A recent industry survey revealed that so called ‘hypergrowth’ companies growing at an annual rate of 40% or more use contractors 25-30% more than other startups. This suggests a correlation between hypergrowth and the use of an independent workforce to rapidly upscale and upskill a workforce according to market demand.
How should contractors prepare for the impact of new technology?
New technology will present the contracting sector with both opportunities and challenges. However, the best way for contractors to respond to the changes is to keep up-to-date on how new technology will affect their sector and adapt accordingly. By developing an understanding of how technology will affect their industry, contractors can skill-proof their careers by predicting what expertise will be in demand and ensuring that they take the necessary steps to acquire it. This could mean investing in training courses, or targeting projects where you’ll have the opportunity to acquire new skills and experience on the job.
Which skills will be in demand?
The integration of blockchain and AI into most business sectors will fuel the demand for contractors with relevant skills. These technologies have resulted in an accelerated growth rate for many businesses. This means that there will be competition to access top talent who can help to integrate these technologies into existing workplace systems and maintain their functioning. Contractors with skills in programming and coding will be in an excellent position to capitalise on this skills gap.
Furthermore, taking a proactive interest in how these technologies work and their wider impact can also benefit contractors. Businesses that are emerging in this sector not only need workers with technical expertise, but also ones who understand communications and legal issues within the sector. Those with knowledge of these leading new technologies and their impact will have a significant advantage over the competition.
