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Submitted URL: https://app.gartnerformarketers.com/e/er?utm_campaign=RM_NA_2022_SWG_NL_NL08_Conferences_APPS&utm_medium=email&utm_source=Eloqua&cm_...
Effective URL: https://www.gartner.com/en/articles/automation-key-to-inflation-fight-could-also-raise-esg-risks?utm_campaign=RM_NA_2022...
Submission: On August 04 via api from CH — Scanned from DE
Effective URL: https://www.gartner.com/en/articles/automation-key-to-inflation-fight-could-also-raise-esg-risks?utm_campaign=RM_NA_2022...
Submission: On August 04 via api from CH — Scanned from DE
Form analysis 2 forms found in the DOM
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<li>
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<a href="javascript:void(0)" data-value="BELARUS">Belarus</a>
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<a href="javascript:void(0)" data-value="BELGIUM">Belgium</a>
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<a href="javascript:void(0)" data-value="BELIZE">Belize</a>
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<li>
<a href="javascript:void(0)" data-value="BENIN">Benin</a>
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<a href="javascript:void(0)" data-value="BERMUDA">Bermuda</a>
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<a href="javascript:void(0)" data-value="BHUTAN">Bhutan</a>
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<a href="javascript:void(0)" data-value="BOTSWANA">Botswana</a>
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<a href="javascript:void(0)" data-value="BOUVET ISLAND">Bouvet Island</a>
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<a href="javascript:void(0)" data-value="BRAZIL">Brazil</a>
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<a href="javascript:void(0)" data-value="BRITISH INDIAN OCEAN TERRITORY">British Indian Ocean Territory</a>
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<a href="javascript:void(0)" data-value="BRUNEI DARUSSALAM">Brunei Darussalam</a>
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<a href="javascript:void(0)" data-value="BURKINA FASO">Burkina Faso</a>
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<a href="javascript:void(0)" data-value="CHILE">Chile</a>
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<a href="javascript:void(0)" data-value="CHINA">China</a>
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<a href="javascript:void(0)" data-value="CHRISTMAS ISLAND">Christmas Island</a>
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<a href="javascript:void(0)" data-value="COCOS (KEELING) ISLANDS">Cocos (Keeling) Islands</a>
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<a href="javascript:void(0)" data-value="CONGO">Congo</a>
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<a href="javascript:void(0)" data-value="CONGO, THE DEMOCRATIC REPUBLIC OF THE">Congo, The Democratic Republic of the</a>
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<li>
<a href="javascript:void(0)" data-value="COOK ISLANDS">Cook Islands</a>
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<li>
<a href="javascript:void(0)" data-value="COSTA RICA">Costa Rica</a>
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<a href="javascript:void(0)" data-value="CÔTE D'IVOIRE">Côte D'Ivoire</a>
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<a href="javascript:void(0)" data-value="DOMINICAN REPUBLIC">Dominican Republic</a>
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<a href="javascript:void(0)" data-value="FALKLAND ISLANDS (MALVINAS)">Falkland Islands (Malvinas)</a>
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<a href="javascript:void(0)" data-value="FAROE ISLANDS">Faroe Islands</a>
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<a href="javascript:void(0)" data-value="FIJI">Fiji</a>
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<a href="javascript:void(0)" data-value="FRANCE">France</a>
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<a href="javascript:void(0)" data-value="FRENCH GUIANA">French Guiana</a>
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<li>
<a href="javascript:void(0)" data-value="FRENCH POLYNESIA">French Polynesia</a>
</li>
<li>
<a href="javascript:void(0)" data-value="FRENCH SOUTHERN TERRITORIES">French Southern Territories</a>
</li>
<li>
<a href="javascript:void(0)" data-value="GABON">Gabon</a>
</li>
<li>
<a href="javascript:void(0)" data-value="GAMBIA">Gambia</a>
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<li>
<a href="javascript:void(0)" data-value="GEORGIA">Georgia</a>
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<li>
<a href="javascript:void(0)" data-value="GERMANY">Germany</a>
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<li>
<a href="javascript:void(0)" data-value="GHANA">Ghana</a>
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<li>
<a href="javascript:void(0)" data-value="GIBRALTAR">Gibraltar</a>
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<li>
<a href="javascript:void(0)" data-value="GREECE">Greece</a>
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<li>
<a href="javascript:void(0)" data-value="GREENLAND">Greenland</a>
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<li>
<a href="javascript:void(0)" data-value="GRENADA">Grenada</a>
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<li>
<a href="javascript:void(0)" data-value="GUADELOUPE">Guadeloupe</a>
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<li>
<a href="javascript:void(0)" data-value="GUAM">Guam</a>
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<li>
<a href="javascript:void(0)" data-value="GUATEMALA">Guatemala</a>
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<li>
<a href="javascript:void(0)" data-value="GUERNSEY">Guernsey</a>
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<li>
<a href="javascript:void(0)" data-value="GUINEA">Guinea</a>
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<li>
<a href="javascript:void(0)" data-value="GUINEA-BISSAU">Guinea-Bissau</a>
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<li>
<a href="javascript:void(0)" data-value="GUYANA">Guyana</a>
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<li>
<a href="javascript:void(0)" data-value="HAITI">Haiti</a>
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<a href="javascript:void(0)" data-value="HEARD/MCDONALD ISLS.">Heard/McDonald Isls.</a>
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<li>
<a href="javascript:void(0)" data-value="HONDURAS">Honduras</a>
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<li>
<a href="javascript:void(0)" data-value="HONG KONG">Hong Kong</a>
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<li>
<a href="javascript:void(0)" data-value="HUNGARY">Hungary</a>
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<li>
<a href="javascript:void(0)" data-value="ICELAND">Iceland</a>
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<li>
<a href="javascript:void(0)" data-value="INDONESIA">Indonesia</a>
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<li>
<a href="javascript:void(0)" data-value="IRAN, ISLAMIC REPUBLIC OF">Iran, Islamic Republic of</a>
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<li>
<a href="javascript:void(0)" data-value="IRAQ">Iraq</a>
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<li>
<a href="javascript:void(0)" data-value="IRELAND">Ireland</a>
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<a href="javascript:void(0)" data-value="ISLE OF MAN">Isle of Man</a>
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<li>
<a href="javascript:void(0)" data-value="ISRAEL">Israel</a>
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<li>
<a href="javascript:void(0)" data-value="ITALY">Italy</a>
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<li>
<a href="javascript:void(0)" data-value="JAMAICA">Jamaica</a>
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<li>
<a href="javascript:void(0)" data-value="JAPAN">Japan</a>
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<li>
<a href="javascript:void(0)" data-value="JERSEY">Jersey</a>
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<li>
<a href="javascript:void(0)" data-value="JORDAN">Jordan</a>
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<li>
<a href="javascript:void(0)" data-value="KAZAKHSTAN">Kazakhstan</a>
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<li>
<a href="javascript:void(0)" data-value="KENYA">Kenya</a>
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<li>
<a href="javascript:void(0)" data-value="KIRIBATI">Kiribati</a>
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<li>
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<a href="javascript:void(0)" data-value="LAO PEOPLE'S DEMOCRATIC REPUBLIC">Lao People's Democratic Republic</a>
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<li>
<a href="javascript:void(0)" data-value="LATVIA">Latvia</a>
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<li>
<a href="javascript:void(0)" data-value="LEBANON">Lebanon</a>
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<li>
<a href="javascript:void(0)" data-value="LESOTHO">Lesotho</a>
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<li>
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<a href="javascript:void(0)" data-value="LIECHTENSTEIN">Liechtenstein</a>
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<li>
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<a href="javascript:void(0)" data-value="MADAGASCAR">Madagascar</a>
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<li>
<a href="javascript:void(0)" data-value="MALAWI">Malawi</a>
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<li>
<a href="javascript:void(0)" data-value="MALAYSIA">Malaysia</a>
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<li>
<a href="javascript:void(0)" data-value="MALDIVES">Maldives</a>
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<li>
<a href="javascript:void(0)" data-value="MALI">Mali</a>
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<li>
<a href="javascript:void(0)" data-value="MALTA">Malta</a>
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<li>
<a href="javascript:void(0)" data-value="MARSHALL ISLANDS">Marshall Islands</a>
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<li>
<a href="javascript:void(0)" data-value="MARTINIQUE">Martinique</a>
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<li>
<a href="javascript:void(0)" data-value="MAURITANIA">Mauritania</a>
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<li>
<a href="javascript:void(0)" data-value="MAURITIUS">Mauritius</a>
</li>
<li>
<a href="javascript:void(0)" data-value="MAYOTTE">Mayotte</a>
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<li>
<a href="javascript:void(0)" data-value="MEXICO">Mexico</a>
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<li>
<a href="javascript:void(0)" data-value="MICRONESIA, FEDERATED STATES OF">Micronesia, Federated States of</a>
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<li>
<a href="javascript:void(0)" data-value="MOLDOVA, REPUBLIC OF">Moldova, Republic of</a>
</li>
<li>
<a href="javascript:void(0)" data-value="MONACO">Monaco</a>
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<li>
<a href="javascript:void(0)" data-value="MONGOLIA">Mongolia</a>
</li>
<li>
<a href="javascript:void(0)" data-value="MONTENEGRO">Montenegro</a>
</li>
<li>
<a href="javascript:void(0)" data-value="MONTSERRAT">Montserrat</a>
</li>
<li>
<a href="javascript:void(0)" data-value="MOROCCO">Morocco</a>
</li>
<li>
<a href="javascript:void(0)" data-value="MOZAMBIQUE">Mozambique</a>
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<li>
<a href="javascript:void(0)" data-value="MYANMAR">Myanmar</a>
</li>
<li>
<a href="javascript:void(0)" data-value="NAMIBIA">Namibia</a>
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<li>
<a href="javascript:void(0)" data-value="NAURU">Nauru</a>
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<li>
<a href="javascript:void(0)" data-value="NEPAL">Nepal</a>
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<li>
<a href="javascript:void(0)" data-value="NETHERLANDS">Netherlands</a>
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<li>
<a href="javascript:void(0)" data-value="NETHERLANDS ANTILLES">Netherlands Antilles</a>
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<li>
<a href="javascript:void(0)" data-value="NEW CALEDONIA">New Caledonia</a>
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<li>
<a href="javascript:void(0)" data-value="NEW ZEALAND">New Zealand</a>
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<li>
<a href="javascript:void(0)" data-value="NICARAGUA">Nicaragua</a>
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<li>
<a href="javascript:void(0)" data-value="NIGER">Niger</a>
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<li>
<a href="javascript:void(0)" data-value="NIGERIA">Nigeria</a>
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<li>
<a href="javascript:void(0)" data-value="NIUE">Niue</a>
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<li>
<a href="javascript:void(0)" data-value="NORFOLK ISLAND">Norfolk Island</a>
</li>
<li>
<a href="javascript:void(0)" data-value="NORTHERN MARIANA ISLANDS">Northern Mariana Islands</a>
</li>
<li>
<a href="javascript:void(0)" data-value="NORWAY">Norway</a>
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<li>
<a href="javascript:void(0)" data-value="OMAN">Oman</a>
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INSIGHTS / INFORMATION TECHNOLOGY / ARTICLE
AUTOMATION, KEY TO INFLATION FIGHT, COULD ALSO RAISE ESG RISKS
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July 5, 2022
Contributor: Lori Perri
CEOs use three levels of responsible automation to mitigate inflation and
support environmental, social and governance (ESG) impact.
In short:
* Automation can help fight inflation by reducing costs and driving new revenue
streams and job creation.
* But purely economic-focused automation may conflict with CEOs’ and investors’
increased focus on ESG priorities.
* Taking a responsible automation approach means weighing the benefits and
risks to earnings; stakeholder experience; and diversity, equity and
inclusion (DEI).
Done well, automation promises significant cost, quality and speed improvements.
In today’s inflationary environment, it is especially attractive as a way to
reduce the cost of doing business. But those benefits can come at a social cost
and result in job losses and inequality. As CEOs increasingly prioritize
sustainable business, even automation needs to be viewed through the lens of
responsibility.
Download now: The Top Strategic Technology Trends for 2022
“Responsible automation is a vision, concept and framework that goes beyond
economic benefits to enable social, environmental and governance (ESG)
outcomes,” says Kristin Moyer, Distinguished VP Analyst at Gartner. “And without
due attention, automation can conflict with investor priorities for ESG.”
Share on Facebook Share on Twitter Share on LinkedIn Share by Email
THREE WAYS TO THINK ABOUT AUTOMATION BENEFITS AND ESG RISKS
NO. 1: EARNINGS-DRIVEN AUTOMATION
Earnings-driven automation focuses on improving financial performance. Gartner
estimates that automation could result in a $15 trillion benefit to the global
economy by 2030. Executive leaders apply earnings-driven automation to improve
productivity.
Automation can reduce the volume of talent needed, but it may also exacerbate
skills mismatches (such as the lack of data and analytics talent), which are
already an issue. Earnings-driven automation may also warrant upskilling and
reskilling existing employees.
“Quite often, higher productivity and better bandwidth for an existing employee
would result in performing high-value tasks that were not getting done, such as
nurturing high-value client relationships,” says Moyer. Training a robot might
be a new job profile. Business domain knowledge would be mandatory.
Earnings-driven automation can be used to mitigate inflation. It can also be a
response to an economic downturn, alleviate talent shortages, and improve
operating margins and productivity.
THE POTENTIAL RISKS OF USING EARNINGS-DRIVEN AUTOMATION
* Worker displacement and potential long-term unemployment
* Widening inequality
* Competition for highly skilled workers, such as data scientists
* Capital expenditure (capex) required to implement automation
* Hidden operating expenditure (opex) costs of automation (maintenance,
training, aversion to change)
Listen now: Is Your Enterprise Value Model Broken?
NO. 2: EXPERIENCE-FOCUSED AUTOMATION
Experience-focused automation seeks to improve the overall experience and
accuracy for customers, employees, investors and partners, among others. It
focuses on automating tedious tasks to increase accuracy and improve the quality
of work.
Many manufacturing companies in emerging markets use automation and machines to
improve quality reporting and quality assurance.
THE POTENTIAL RISKS OF USING EXPERIENCE-FOCUSED AUTOMATION
* Lack of available skills on the market to implement a responsible automation
strategy
* Abandonment of automation before full return on investment (ROI) is seen
* Workers augmented out of jobs (there’s a fine line between augmenting work
and automation that eliminates headcount)
* Technology is trusted over the voice and experience of workers
▶
▶
Close | ✕
NO. 3: EQUITY-ORIENTED AUTOMATION
Equity-oriented automation can be used to drive new revenue streams, create new
and high-quality jobs, and support DEI. This automation reduces the level of
employee knowledge needed to perform tasks and therefore upskills workers to
perform at a higher level.
Robotics can be used in manufacturing to improve worker safety and reduce strain
for people with disabilities. HR can leverage artificial intelligence to screen
resumes and reduce hiring practices bias. Equity-oriented automation does, in
fact, recognize the risks of incorporating human biases.
THE POTENTIAL RISKS OF USING EQUITY-ORIENTED AUTOMATION
* Machine rights may become as important as human rights
* Machine control could lead to unintended consequences
* Ethical bias
EXPERIENCE CIO AND IT EXECUTIVE CONFERENCES
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View Conferences
Recommended resources for Gartner clients*:
2022 CEO Survey: The Need for Responsible Automation
Use the Autonomization Flywheel to Combine People and Machines and Win in the
2020s
2022 CEO Survey: Sustainability and ESG Become Enduring Change
*Note that some documents may not be available to all Gartner clients.
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