The rise of artificial intelligence will create a significant labor displacement in the next few decades. Indeed, half of today’s work activities could be automated by 2055, according to a new report by the McKinsey Global Institute.
According to the report, automation of the world’s work activities could increase productivity growth globally by 0.8% to 1.4% annually. The retail sector is particularly vulnerable to such change; the report notes that automation in grocery stores could cut back the number of hours worked by about 65%.
Job cutbacks will occur for cashiers and merchandisers tasked with stocking shelves and cleaning. Many of these low-skill positions will be eliminated and training will be redirected to jobs that operate alongside machines. Instead of scanning groceries, staff members will learn how to troubleshoot technical problems.
McKinsey portrays the hypothetical future state of automation in a grocery store as a highly personal, no-fuss, shopping experience.
Here’s how the grocery store of the near-future would work: An automatic facial recognition system greets customers by name at the entrance, and virtual assistants can direct customers to different aisles. Artificial-intelligence sensors will also assist grocery store customers, continuously updating the prices and items in the customer’s shopping cart.
Customers can then finalize purchases through a cellphone order that gives them customized coupons. This process could, in theory, take a lot less time than checkout lines.
Behind the scenes, the automatic stock room will manage the store’s inventory and send signals for robots to restock vacant shelves. Similar to today’s online grocery shopping experience, advanced technology can also prepare custom orders and deliver the items via drones.
While this elaborate scenario is not yet available, automated grocery stores are not anything surprising. Self-checkout kiosks, robot cleaners, and automated storerooms already exist.
Last month, Amazon released a video outlining how its digital shopping experience transformed a physical store in Seattle, Washington. Amazon Go eliminates checkouts and cashiers. Instead, it tracks grocery items automatically through a combination of computer vision and deep learning technologies. It is currently only available to Amazon employees, but the store is set to open to the public in early 2017.
A similar approach resonated with Swedish IT specialist, Robert Ilijason, who opened his automated convenience store in the town Viken, Sweden. Like Amazon Go, customers need to download an app. This app will unlock the doors and scan items shoppers wish to buy. At the end of the month, the app charges the customers for their purchases.