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1. Introduction: Linking what is discussed in case–the trend you mentioned in case and then elaborate in regard to this work, the requirement such as using future thinking technique (100–150words)2. Desirable future outcome for the trend: (with argument for towhom it is desirable – ie. in what ways will it benefit/impact keystakeholders in the THE system – and why its desirable) (around 300 words)3. Detailed futures wheel with backcasting: (diagram can becreated using https://online.visual-paradigm.com/drive/#diagraml…) and short explanations of the main elements of the futures wheel, similar to the case (around 600 words)4. Changes needed (government policy and/or industry practice:Identify what changes should be made in present government policy and/or industry practice related to this trend in order to realise the desired future (around 850 words)5. Conclusion: summarise the main idea (100–150 words)6. Reference: (around 15 references)
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The New Industrial Revolution Through Automation in San Francisco
The City and county of San Francisco, or simply San Francisco, is a major city in
California, United States. San Francisco is vitally important economically,
technologically, and culturally. Data from the US Census Bureau (2023) shows that as
of 2022, San Francisco was the 17th largest US city with an estimated population of
808,437 people. According to Fernandez (2022), San Francisco was the
fastest-growing city in the US, economically. It had a GDP of $1.4 trillion (the fourth
largest in the US) (Fernandez, 2022). San Francisco’s massive economy makes it a
vital US city. An emerging trend in San Francisco that will greatly affect its economy
and that of the US is automation (Griffith, 2023). It regards the utilization of
technology to perform tasks with reduced human assistance (Griffith, 2023).
Automation will positively and/or negatively impact San Francisco’s economic and
social development. It is crucial to understand the factors giving rise to the automation
trend, the trend’s characteristics, and its impact on tourism, hospitality, and activities,
to adequately adapt to the same. This paper explores the factors influencing
automation in San Francisco, its characteristics, and its impacts on tourism, hospitality,
and related activities in the city.
Factors/Forces That Gave Rise to The Trend
One key factor influencing automation in San Francisco is huge technological
advancements that are massively easing automation (Jo, 2023). The city has been a
key technological hub for decades (Griffith, 2023). It quickly became a home for
major tech companies like Google, Facebook, and Twitter in their formative years
(Griffith, 2023). The tech giants located in San Francisco and other smaller but vital
tech companies are using their innovations to drive automation in the city (Griffith,
2023). San Francisco is also located a mere 40 miles from Silicon Valley, the global
center for high technology and innovation. Its strategic location means it has quick
access to high technology developed in Silicon Valley. Artificial Intelligence (AI) and
robotics are two technological advancements enhancing automation (Jo, 2023). AI,
together with robotics helps create machines with some advanced intelligence levels.
The availability of advanced technology in and close to the city is influencing
automation.
The second key factor influencing automation in San Francisco is its economic
advantages for firms (Benanav, 2020). Businesses constantly seek ways to enhance
their operations and minimize their costs. Automation offers a promising path to
achieving both objectives (Benanav, 2020). Automation using advanced technology
helps reduce the likelihood of mistakes in the production and service delivery
processes. It also reduces the time taken to develop a single unit or provide a
particular service. The automation taking place in San Francisco is helping businesses
achieve the two objectives. Automation is also helping firms require fewer and fewer
employees as machines are taking on tasks normally handled by human workers
(Benanav, 2020). Fewer employees means less labor cost. Profit optimization due to
enhanced operations and cost minimization due to saving on labor costs is promising
businesses huge economic benefits.
The third factor influencing automation in San Francisco is labor market
dynamics. The cost of labor has been growing in the US (Benanav, 2020). Currently,
the cost of labor in the US is massively higher than in key major countries like China,
India, and Mexico (Benanav, 2020). Many major US firms opt to offshore their
production and some operations in such countries with significantly low labor costs to
minimize their costs of production and operation. Automation is intended to overcome
the labor market dynamics that have led to significant offshoring. Firms in San
Francisco and other parts of the US are automating their production and operations to
eliminate the need for maintaining a large and expensive labor force. Machines
supported by a few employees are intended to drive production and operations in
firms pursuing automation (Benanav, 2020). The automation move to address labor
issues could fuel increased unemployment rates in San Francisco.
The fourth key factor influencing automation in San Francisco is investment.
Significant financial resources are needed to design, develop, test, and manufacture
sophisticated automation technologies. Research and development in AI and robotics
is quite expensive. Firms determined to reap the benefits of improved automation
have been financing firms in San Francisco and other parts of the US conducting
research and development relating to automation. Promising automation ideas and
firms are attracting huge funding. OpenAI, a leading AI research and development
firm, has been receiving huge financial investments from organizations and
individuals to further its AI projects. ChatGPT was made possible by the investment
the firm received. Financial investment is eliminating the cost constraint on
automation research in San Francisco. Thus, promoting its growth.
Key Characteristics of the Current Automation Trend
One key characteristic of the current automation trend is that it is AI-driven to
a large extent (Scharre, 2023). Automation began with robots executing repetitive
tasks filling bottles, cutting food, and screwing parts. The automation currently taking
place in San Francisco is much more advanced. It involves the use of AI techniques
like machine learning to develop human-mimicking machines called digital workers
(Scharre, 2023). Digital workers can understand human intent, take action, and
respond to questions (IBM, n.d.). The workers are used as computer systems in some
organizations like banks and integrated into robots in other sectors. The new level of
automation threatens human decision-makers in organizations. Their jobs can be
effectively done by the digital workers under development in San Francisco and other
parts of the world. The current level of automation has evoked fear among workers
globally (Scharre, 2023). The world is edging closer to a point where human workers
will increasingly become redundant in many roles in firms. The fear arising from this
characteristic of current automation must be adequately addressed by societies
worldwide before digital workers’ deployment becomes widespread.
The second key characteristic of the current automation trend taking place in
San Francisco is that it is aimed at end-to-end process automation (Scharre, 2023).
End-to-end process automation regards automating most, if not all processes within a
firm or facility (Scharre, 2023). Earlier automation was often limited to some
processes within a firm. For example, automation in factories focused on specific
production processes while others remained under the control of human workers. The
current automation drive focuses on the automation of all tasks where possible
(repetitive and decision-making tasks). If fully achieved, few human workers will be
needed to help run firms. There is sufficient evidence that end-to-end process
automation will be achieved with the current technology.
The third key characteristic of the current automation trend is that it is pursued by
firms in many different sectors. Earlier automation involving robots handling
repetitive tasks was largely relevant for manufacturing organizations. Today’s
automation is relevant to firms in all sectors. Better decision-making is critical in
governmental and non-governmental organizations (Scharre, 2023). Digital workers
who can process big data and use it to make decisions far exceed human
decision-makers in many areas of life. Firms in sectors like banking, insurance,
healthcare, telecommunication, and the Internet are working hard to acquire digital
workers that would help enhance their decision-making and operations.
The Trend’s Impact on Tourism, Hospitality, and Activities
Ongoing automation is affecting hospitality and tourism-related activities in San
Francisco. One clear way automation is affecting hospitality in the city is through
hotel process automation. Some restaurants in the city are pursuing end-to-end
process automation (Bandoim, 2019). Café X is an example of restaurants in San
Francisco pursuing greater robot integration into hotel operations and management
(Bandoim, 2019). The café is using robots to take orders and prepare and serve coffee
and pastries (Bandoim, 2019). Café X not only serves coffee and pastries. It also
develops restaurant automation robots and machines (Bandoim, 2019). It aims to
build the most advanced cafe system in the world (Bandoim, 2019). Tourists and
travelers who visit Café X are served by robots.
The adoption of robot taxis and self-driving vehicles is another obvious way the
ongoing automation has affected tourism, hospitality, and related activities in San
Francisco (Marshall, 2023). Robot taxis and self-driving vehicles are on the rise in the
city (Marshall, 2023). Tourists who have recently visited the city have likely seen or
used such vehicles. City residents are also increasingly using the vehicles to visit
tourist and cultural sites and restaurants (Marshall, 2023). San Francisco is one of the
few cities in the world to increasingly adopt robot taxis and self-driving vehicles. The
adoption is expected to rise significantly shortly.
The Current Situation and Near Future
Currently, it is unclear how the ongoing advanced automation is impacting
traditional tourism-related activities in San Francisco. Robots and digital workers are
increasingly being deployed to help run and manage activities related to tourism and
hospitality in the city. However, there is no adequate data to judge the impact of the
same on tourism, hospitality, and related activities. It is unclear whether the
automation is promoting or discouraging travel, tourism, and hospitality in San
Francisco or otherwise. Firms and relevant organizations will soon start receiving data
that will inform them about automation’s impact on tourism, hospitality, and related
activities. Signs are that automation will accelerate shortly. Firms are motivated to use
automation to enhance efficiency and reduce costs. Some people are resisting
automation in San Francisco while others are embracing the same. Challenges
currently facing the ongoing automation drive include stiff resistance from large parts
of society, a hostile political environment, robot tax proposals, and high automation
costs (Benanav, 2020). Opportunities include heavy funding for automation projects
and significant technological advancement in AI and big data areas.
Conclusion
In summary, several key factors are influencing the ongoing automation in San
Francisco. The factors are technological advancements, economic incentives, labor
market dynamics, and significant investment into automation research and
development. Ongoing automation has some characteristics that set it apart from
earlier automation. The characteristics are that it is AI-driven, focuses on end-to-end
process automation, and is taking place in most, if not all sectors. The automation is
affecting tourism, hospitality, and related activities in San Francisco. Robots taxis and
cars are now transporting tourists and travelers and robots are serving people in
restaurants. It is still unclear how the development is impacting the tourism and
hospitality sector in the city. Automation is expected to continue as travel, tourism,
and hospitality firms have an incentive to use robots and digital workers to enhance
operations and minimize costs.
References
Bandoim, L. (2019). Cafe X opens a new robotic barista coffee bar in an airport.
https://www.forbes.com/sites/lanabandoim/2019/12/25/cafe-x-opens-a-new-ro
botic-barista-coffee-bar-in-an-airport/?sh=27cad3095561
Benanav, A. (2020). Automation and the Future of Work. Verso Books.
Fernandez, C. (2022). 10 U.S. cities that are growing the fastest—and New York City
isn’t one of them.
https://www.cnbc.com/2022/11/09/fastest-growing-us-cities-kenan-institute.ht
ml
Griffith, E. (2023). They fled San Francisco. The A.I. boom pulled them back.
https://www.nytimes.com/2023/06/07/technology/ai-san-francisco-tech-industr
y.html
Iacurci, G. (2023). A.I. is on a collision course with white-collar, high-paid jobs —
and with unknown impact. Cnbc
https://www.cnbc.com/2023/07/31/ai-could-affect-many-white-collar-high-pai
d-jobs.html
IBM. What is a digital worker?
https://www.ibm.com/topics/digital-worker#:~:text=They%20understand%20h
uman%20intent%2C%20respond,%2C%20and%20an%20enhanced%20experi
ence.%E2%80%9D
Jo, A. (2023). The promise and peril of generative AI. Nature, 614(1), 214-216.
https://doi.org/10.1038/d41586-023-00340-6
Marshall, A. (2023). Robotaxis Can Now Work the Streets of San Francisco 24/7.
https://www.wired.com/story/robotaxis-cruise-waymo-san-francisco/
Pranger, A. &Su,Y. (2023).New disruption from artificial intelligence exposes
high-skilled workers. Federal Reserve Bank of Dallas.
https://www.dallasfed.org/research/swe/2023/swe2314
Scharre, P. (2023). Four battlegrounds: power in the age of artificial intelligence. WW
Norton & Company.
Statt, N. (2017). America may miss out on the next industrial revolution / Preparing
for automation means investing in robotics. Theverge.
https://www.theverge.com/2017/3/15/14935360/automation-robots-ai-manufac
turing-future-sxsw-2017
The US Census Bureau. (2023). QuickFacts: San Francisco City, California; San
Francisco
County,
California.
https://www.census.gov/quickfacts/fact/table/sanfranciscocitycalifornia,sanfranciscoc
ountycalifornia/PST045222
1. Introduction: Linking what is discussed in case–the trend you mentioned in case and then
elaborate in regard to this work, the requirement such as using future thinking technique (100–
150words)
2. Desirable future outcome for the trend: (with argument for towhom it is desirable – ie. in what
ways will it benefit/impact keystakeholders in the THE system – and why its desirable) (around
300 words)
3. Detailed futures wheel with backcasting: (diagram can becreated using
https://online.visual-paradigm.com/drive/#diagramlist:proj=0&new=FuturesWheel) and short
explanations of the main elements of the futures wheel, similar to the case (around 600 words)
4. Changes needed (government policy and/or industry practice:Identify what changes should be
made in present government policy and/or industry practice related to this trend in order to
realise the desired future (around 850 words)
5. Conclusion: summarise the main idea (100–150 words)
6. Reference: (around 15 references)
Remember: you need academic literature/references or academic framework/model to support
your discussion and argument, in-text citation needed.
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