Fourth Industrial Revolution

Due to increased interconnection and smart automation, the Fourth Industrial Revolution, also known as Industry 4.0, envisions fast change in technology, industries, and societal patterns and processes in the twenty-first century. The word has been widely used in scientific literature, and Klaus Schwab, the World Economic Forum’s Founder and Executive Chairman, popularised it in 2015. According to Schwab, the changes are more than merely efficiency gains; they represent a significant transition in industrial capitalism.The merging of technologies such as artificial intelligence, gene editing, This phase of industrial progress includes advanced robotics, which blurs the lines between the physical, digital, and biological worlds.

Fourth Industrial Revolution

Major changes in how the global production and supply network operates are occurring as a result of ongoing automation of old manufacturing and industrial practises, the use of current smart technologies, large-scale machine-to-machine communication (M2M), and the internet of things (IoT). Increased automation, improved communication and self-monitoring, and the usage of smart technologies that can evaluate and diagnose issues without the need for human interaction are all benefits of this integration.

It also reflects a social, political, and economic transformation from the digital age of the late 1990s and early 2000s to an era of embedded connection marked by widespread technological use (e.g., a metaverse) that alters how humans see and understand the world around themIt claims that we have created and are entering an augmented social reality in comparison to humans’ inherent senses and industrial capacities alone.

Professional sectors and jobs more exposed to automation

The Fourth Industrial Revolution does not appear to pose a threat to human labour in general.Even within the same professional field, there is a lot of diversity in jobs. Depending on the job they hold and the duties they perform, employees are exposed to automation in different ways. Routine activities that need a high volume of actions such as information interchange, sales, data management, manual labour, product transfer and storage, construction, and office work are more vulnerable to automation. The professional industries of construction and manufacturing, as well as wholesale and retail trade, are predicted to be substantially automated until 2030, with an estimated automation of 45 and 34 percent, respectively (for OECD 3 countries).On the other hand, positions with high educational requirements and tasks that need high linguistic and cognitive skills are less likely to be automated. Such tasks are more related to perception, the ability to manage complex situations, multilevel activity and flexibility, and true creativity, for example, any task that cannot be performed but involves critical thinking, such as the ability to invent new theories, literature, or musical compositions, which cannot be done by a computer.

There are some tasks that demand social intelligence and comprehension, such as senior care, and there is a strong social preference for human employees to perform these tasks rather than robots. The professions of health and education have the lowest estimated rates of automation (about 8–9% in OECD nations). This is also evident in Figure 3, which shows that “Transportation and storage” and “Manufacturing” are the economic sectors most vulnerable to automation (up to 50%), The most protected occupations are “Human health and social work” and “Education,” suggesting that some functions, such as teaching and nursing, cannot be substituted by machines.

The Fourth Industrial Revolution’s challenges and measures to address them

Substantial technology advancements may indicate significant policy implications. In its report, McKinsey emphasises that governments’ ability to adopt the appropriate policies is critical to successful adaptation to new technology conditions. Governments that are unable to implement appropriate long-term policies will put their economies at risk; that is, when all other economies are running at full speed, their inability to adapt to the new reality will result in a loss of competitiveness, a reduction in revenue, and an increase in spending, with the risk of bankruptcy increasing. But it’s not only about governments’ ability to adapt to changing circumstances.There are also serious societal issues that may worsen as a result of the Fourth Industrial Revolution, necessitating legislative intervention. Political leaders must guarantee that technology advancement is used to help society rather than to harm it. The following are some of the most significant difficulties that may occur as a result of Industry 4.0, as well as some basic policies to address them (see [4, 9, 10] among others). Given the direct link between Industry 4.0 and socioeconomic progress, these policies must be fully compliant with the Sustainable Development Goals (SGs) adopted by UN Member States in 2015. 4,5

Europe, the US, and Asia are all at risk from automation.

By country, the predicted proportion of existing employment at high risk of automation differs greatly. 7 Differences in labour market structure, education and skill levels, government regulations on Industry 4.0, and working styles all play a role in determining automation rates. Countries with similar economic structures and characteristics, on the other hand, have similar potential rates of job automation (see [4, 7] among others). The following four country groups could be investigated for their automation risk:

Industrial economies, that is, economies where industrial production (which is easier to automate) still accounts for the majority of overall employment, continue to dominate.Eastern European countries (Germany, Italy, etc.) are examples of such economies, with substantial shares of employment in industry sectors like manufacturing and transportation that can be easily mechanised until the 2030s.

Conclusion

A general conclusion is that the Fourth Industrial Revolution may contribute to an increase in poverty and hunger, as well as a widening of income and social inequality, with rich and high-skilled people benefiting from technological progress while low-paid and less qualified workers suffer a greater income reduction. The widening of the financial gap between rich and poor countries (as well as within countries) may result in an increase in illegal immigration, which could result in significant cultural and political conflicts. As a result, authorities’ political action becomes critical in order to eliminate inequality and harmful societal effects.